Financial planning for every phase of life

As part of financial planning, your entire financial situation is analyzed in order to define clear goals and develop strategies to achieve them. It includes budgeting, comparing income and expenditure, developing savings and investment strategies, and planning precautionary measures. Well-thought-out financial planning ensures long-term financial security and independence by taking your wishes and goals into account. This means you are optimally prepared for the future!

The ideal time to start financial planning is NOW – regardless of your age or financial situation. The earlier you start, the better you can build up long-term assets and achieve your goals, such as optimizing your retirement provision or buying your own home. 

Comprehensive financial planning takes income, expenditure and assets into account and follows these steps:

• Budgeting: Together we create a detailed, individual budget to keep an eye on your expenses and income.
• Saving: We show you options for building up a liquidity reserve and saving regularly for long-term goals.
• Investing: We develop a personal investment strategy based on your goals, your risk tolerance and your investment horizon.
• Retirement provision: We analyze your pension situation to ensure that you are adequately covered against life's risks.

It is advisable to review your financial plan on a regular basis: regularly every few years or at significant life events such as marriage, birth of a child, change of job or retirement. Life changes should be reflected in your financial plan.

You will need the following documents for a comprehensive situation analysis:

• OASI statement
• current pension fund statement and pension regulations
• statements of 3a accounts and 3a and 3b life insurance policies
• tax returns
• securities statements
• any mortgage agreements and property valuation (market value)
• marriage and inheritance contracts, wills
• insurance policies

These documents help to analyze your financial situation in detail and create a tailor-made financial plan.

Typical occasions for financial planning are important life events or changes that require financial decisions. These include:

• Professional changes: job change, promotion, unemployment, self-employment or the desire to work part-time.
• Family events: marriage, birth of a child, divorce or the death of a family member.
• Major purchases: purchase of a property, renovation or the purchase of a vehicle.
• Retirement planning: ordinary or early retirement, partial retirement or deferred retirement.
• Inheritances or financial gains that should be invested optimally.

Each of these situations requires an individual financial strategy.

Finding the right balance between saving, investing and spending requires a well-thought-out strategy. Here are some steps that might help you:

1. Create a budget: Define your monthly fixed costs and expenses to know how much you have available.
2. Build up an emergency reserve: Start by saving for unforeseen expenses, e.g. three to six months of your living expenses.
3. Set long-term goals: Prioritize long-term savings goals such as retirement provision and major purchases.
4. Invest: Regularly invest part of your income to increase your assets.
5. Don't forget to enjoy yourself: Plan a budget for personal expenses so that you can enjoy the present without jeopardizing your financial goals.

You can achieve a balance by consciously planning your expenditure, making provisions for the future and investing in your quality of life at the same time.

There are various pillars of retirement provision:

• State retirement provision (OASI): Old-age and survivors' insurance covers basic needs.
• Occupational retirement provision (BVG): Occupational retirement provision safeguards the standard of living to which employees are accustomed.
• Personal retirement provision (pillar 3a and 3b): This includes individual pension solutions with tax advantages.
• Real estate and investments: Real estate and securities as long-term investments supplement retirement provision.

We will advise you comprehensively on which options are best suited to your individual situation. For more information, read our article on retirement provision.

The amount you need to save depends on factors such as your desired standard of living in retirement, life expectancy and additional sources of income. A general rule of thumb is that you need about 70-80 percent of your final income per year in retirement. Our experts will help you plan customized retirement provision.

You can find detailed information on our Planning your retirement pages and in our article Early retirement.

The most common investment opportunities include:

• Equities: high returns, but also higher risk.
• Bonds: more stable interest payments with lower risk.
• Investment funds and ETFs: offer diversification, but with management fees.
• Real estate: high initial investment, less liquid.
• Commodities: hedging against inflation, but volatile prices.
• Pillar 3a and 3b: tax-privileged pension accounts.

The right investment depends on your goals, your personal situation, your risk tolerance and your investment horizon.

Further information can be found on our pages on investment advice and asset management.

A liquidity reserve protects you from unexpected expenses. It is built up in the following steps:

1. Set target amount: A reserve of three to six months of living expenses is recommended.
2. Create a budget: Determine your monthly savings rate.
3. Automated saving: Set up regular transfers to a savings account.
4. Access and liquidity: The liquidity reserve should be easily accessible, but not tempting.

Various strategies are available for tax optimization: Take advantage of tax deductions, invest in tax-privileged accounts such as pillar 3a and optimize your income and asset structure holistically.

Our Save taxes page provides you with detailed information.

What insurance you really need depends on your situation in life and your individual needs. In addition to health insurance, personal liability insurance, household contents insurance and life insurance are among the basic forms of cover.

Depending on your situation, other insurance policies may be useful, such as legal protection insurance or travel insurance.
Our pension calculator provides you with a valuable basis for better understanding your current situation.