We know how your mental health can affect the way you deal with money. If you’re feeling low or depressed, you may lack the motivation to manage your finances. It might not feel worth trying. Thinking of the future is hard when you have no motivation to do so. Spending may give you a brief high, so you might overspend to feel better. You might make impulsive financial decisions. If your mental health affects your ability to work, this might also reduce your income and put more pressure on you.

We also know your financial situation can affect your mental health. Certain situations might trigger feelings of anxiety and panic. Worrying about money can lead to sleep problems. Money problems can affect your social life and relationships. You might feel lonely or isolated, or like you can’t afford to do the things you want to.

You don’t need to have significant debts for money to affect your mental health. We know all too well the vicious cycle of depression and debt. Nor are you guaranteed to be happy, just because you have money. Even for those who have money, the emotional connection to money, and the way you think about money, influences your decisions. And these could have huge impacts on your future state of mind.

You might feel guilty for spending money, even if you know you can afford it. Or, you might feel guilty for seeking support, even if you know you need it. You might feel stressed if you’re under a lot of pressure to support yourself and others. And worn down from working so hard to generate the income just to sustain your family. What is it all for?

Steve Jobs had money. “I reached the pinnacle of success in the business world. In others’ eyes, my life is the epitome of success. However, aside from work, I have little joy. In the end, wealth is only a fact of life that I am accustomed to. At this moment, lying on the sick bed and recalling my whole life, I realize that all the recognition and wealth that I took so much pride in, have paled and become meaningless in the face of impending death.”

OK so Steve Jobs is an extreme example, but a key question to ask is: What is it all for? Is it for your family’s security? Is it for charity and philanthropy? Is it for the biggest holiday of your life (AKA retirement)? And have you got a plan to get there? Is your plan balanced enough to allow you the flexibility to live a little?

You might find it helpful to take some time to think about how you feel about money and why. For example, if you’ve struggled with money in the past or didn’t have much money growing up, this might affect the way you feel about money now. You could try answering these questions:

• Are there certain times when you’re more likely to spend money?
• Are there certain times when you’re more likely to save money?
• How does it feel when you spend money?
• Do you feel differently when you’re spending and saving?
• What are the emotions and feelings you think of when you think about money?
• Which aspects of dealing with money make your mental health worse?

Once you’ve done this, you might start to feel like you understand your habits and patterns around money a bit more. Knowing these could help you plan ahead for difficult times.

Having plans give us structure and a framework to work within. We can allow flexibility, and allow ourselves to be human. Using trusted advisers who understand money but also the emotional impact of money is important to keeping balance. And remember, what one person does is not necessarily the same and what others should do. We are all individuals. We all have to find our own balance.

Let’s pick Lauren as an example. She is 35, married and is currently earning 100,000 CHF per year. She is pregnant and wants to understand how the 60% contract when she returns to work after maternity leave is going to impact her pension provision and associated benefits.

Current Situation:

She earns 100,000 CHF per year. The coordination deduction is currently 25,095 CHF (this reduction is to coordinate the first and second pillars) therefore the coordinated salary is:

• 100,000- 25,095 = 74,905 CHF

As she is 35, a minimum of 10% is paid into her second pillar therefore 7,490 CHF is being contributed on an annual basis.

60% Contract:

60,000 CHF earnings per year. Lets assume the coordination deduction hasn’t increased since she returned to work, therefore the coordinated salary is:

• 60,000 – 25,095 = 34,905 CHF

She is now 36 and still in the 10% category so 3,490 CHF is being contributed to her second pillar on an annual basis.

Impact:

Lauren’s Second Pillar Retirement Savings

Although Lauren has reduced her contract by 40%, her annual second pillar contributions have decreased by 53%.

Lauren’s Second Pillar Insurable Benefits:

Children’s disability pension, children’s orphans’ pension, Lauren’s disability pension and the survivor’s pension in place for her husband will all also decrease as these are based on the new coordinated salary.

What does this mean for her and her family?

Lauren will be the main carer for their child and if Lauren was to become sick or die the family would have less protection in place as this is calculated on the new lower figure under the new contract.

At a time when they need more protection in place, they will have less.

What can be done?

In Lauren’s case she started a third pillar with insurance to protect her family on her death. Now if she dies before retirement the family will receive a 200,000 CHF lump sum and she is using the savings provision to save for her own retirement in line with her attitude to risk.

Of course, if Lauren’s circumstances were different my recommendations could have also been different – but that’s the benefit of a financial review

Its name is Inflation, and it’s one of the most underappreciated forces that can impact your life financially.

So, what is inflation? To put it as simply as possible, it is the decrease in the purchasing power of your money over time. For instance, think about what you can buy from the supermarket for 100 CHF today, and then what you might be able to buy with the same 100 CHF, but in 10 years’ time.

Each franc is worth less because the price of goods and services is more expensive. Even a low rate of inflation, if persistent, can have a significant impact on the long-term purchasing power of money. At just 2 percent per year, if sustained, inflation will double the price cost every 35 years. So, in reality, a franc would lose half of its purchasing power. Imagine what the effect would be at 5 percent per year or 8% like we are seeing in parts of Europe or the US now.

If someone took out a fixed-rate, 10-year mortgage at 1 percent and inflation turned out to be 2 percent over the life of the mortgage, the debtor (borrower) would end up paying a real interest rate of negative 1 percent. That’s a good deal for the debtor, but not for the creditor (lender). As you can see from this simple example understanding inflation and its effects can have a significant bearing on your financial assets.

For those that may remember Switzerland, which is now considered a low inflation rate country, has seen multiple occasions of high inflation rates most notably in December 1973 when the headline rate hit 12%, far above where we are today. As the world recovers from the effects of Covid-19, we are starting to see a rapid acceleration in inflation for advanced and emerging markets, driven by firming demand, supply chain shortages, and rising commodity prices.

As the cost of oil rises, the cost of fuel increases which has a knock-on effect on just about everything we purchase. This is especially scary for retirees with large holdings of lower return assets, such as cash and bonds. Fortunately, a common secondary effect of inflation is rising interest rates, as upward price pressure eventually prompts Central Banks to increase borrowing costs and dial back bond-buying programs to cool a heating economy.

To ensure your investments can weather the effects of rising inflation, one should always seek the advice of an industry professional. For more information and advice contact a qualified adviser at Swissential on tel. 022 786 2020 or email info@swissential.com

You do however also have to meet a number of other requirements which can vary across the cantons but which typically include:

• demonstrating written and spoken knowledge of a Swiss national language
• integration into Swiss life and culture
• compliance with Swiss law and customs
• not being considered a threat to Swiss national security
• no time spent on Swiss social welfare in the last 3 years, unless you pay back the money received

What parameters do you check or tick? Is it something that you would consider for you and your family in the near or longer term future…? It is really a beautiful country and is most definitely worth it! Count me in!

Pay bills, make dentist appointment, take cat to vet, help kids with homework, cook dinner, do washing, sort out finances……the list of daily tasks for any parent can be never-ending so add the pressure of work into the mix and it’s not surprising that sorting out those finances is all too often at the bottom of the list, waiting for a day when you’ll have more time.

But……will you ever have more time and when you do will it be a bit too late – a bit late to plan for your children’s education, a bit late to plan for meeting your aspirations in retirement? In reality there’s always something you can do but the earlier you think about putting a plan in place the more options will be available to you.

If you speak to a financial adviser, they’ll take you through the essentials of financial planning for people living and/or working in Switzerland. Your adviser will consider your personal circumstances – family situation, employment history and future plans before providing recommendations to suit your individual needs.

Parents have many of the same questions as everyone else but there are obviously areas of particular interest such as saving for children’s education, how to make the most of tax advantages related to childcare and how to deal with inheritance issues. Key questions parents often ask include:

• How much should I be saving for my children’s higher education?
• Will I have saved enough for when I reach retirement?
• How can I maximize the tax advantages available to me in Switzerland?
• Should I consolidate the pension plans I’ve accumulated abroad?
• How can I pass wealth on to my children in a tax-efficient manner?

Depending on your individual situation the adviser will answer your questions and propose savings and investment solutions to suit your requirements. What action you decide to take based on this advice is up to you but whatever happens it’s one more thing you can cross off your list!

It wasn’t for my language skills that I moved here, but because of the old-fashioned reason of meeting someone and joining them in a new and exciting country. But what ever the reason, knowing at least a basic level of the local language gives a sense of confidence and independence – and can save you when you least expect it.

For example, I found myself alone in Lausanne, having missed my last train and with a dead phone battery- happily even in my (slightly) inebriated state I was able to communicate well enough to the taxi driver to get me home…

So as a newbie to the language what would I recommend?

Of course, practicing with those that already speak the language is great- but when you are very new it can all feel like a blur, and one on one classes are fantastic, like through Italki.

But if you just want to get stuck in before diving into lessons, I recommend an app you can practice on the go such as Babbel or Duolingo – this has helped build up my vocabulary.

And, for useful quick to learn phases that I have found very useful I recommend Paul Noble’s language series. Be warned, I had my French speaking friends tell me that what I was being taught was not exactly correct- but I would argue the way the lessons are taught they are easily remembered even when you’ve had one or two and that’s got to count for something!

Switzerland’s population can fit inside a bomb shelter.
Although many are filled with wine, equipment to climb the mountains or ski down, the swiss (by law) are ready to hide away from nuclear threats!

Animals have their rights
Our fury dog friends are permitted in restaurants and are commonly seen as such. Social animals must be kept in pairs. The law says if your guinea pig loses his comrade then you must buy or rent (yes you can rent one just for this purpose) another to keep company until his/her time comes. Things went so far in 2010 that a referendum arose questioning whether animals should have lawyers. It did not pass.

Clocks: The swiss don’t just make them – they follow them.
Swiss punctuality is more than a punchline. The Swiss take a lot of pride in their punctuality, in fact,  it’s rooted in a deep respect for their fellow countrymen. By showing up on time, they are saying ‘I value you, and therefore, I value your time.’ So what does this mean for you in Switzerland? For one, if you make plans with a Swiss national, don’t be late or you could offend your hosts; for another, their trains leave on time, so don’t miss your connections!

No domestic Sundays
In Switzerland there are laws that make it illegal to move, hang out laundry, wash your car or recycle bottles on Sundays. So, enjoy the Sunday instead of working.

Above are just some of the things I`ve seen written about the internet, social media, & the influence it has on modern society. Especially these days… There is certainly much stigma around the fact that anonymity allows any of us to pretty much write & post whatever we want & not be held accountable for it no matter how offensive the content, derogatory the comments & in some extremes cases, even the outright defamation of character.

Well… I`m here to talk to you all about the good side of the internet & social media, how it can be used for good, & how here in Switzerland in can help you when it comes to learning about the country, settling in, & even making big decisions about what steps to take for you as an individual or as a family. I shall use the cantons of Vaud & Geneva as an example, as that is mainly where we work & live at Swissential SA.

Many internationals come to Switzerland having not ever visited the country & knowing very little about it. The food, the culture, the work ethic, the language(s) etc. Now of course it`s easy enough to just Google “Everything I need to know about Switzerland” but the results will not only probably not be as accurate as you`d like, they also most certainly be written from only one individual`s point of view.

This is where those that have come together within Switzerland can help you save time as well as money. The first great example of this is diplomats from other countries living & working locally. They arrive for an unspecified/specified period of time & need to settle quickly. They will be sure to deck their homes out with everything one would normally need, but upon leaving to re-locate or return to their own country, they need to ensure these belongings (furniture, appliances, electronics, & many other household goods) are dispersed with quickly & inexpensively. In order to do this, websites such as www.glocals.com or www.facebook.com/marketplace are brilliant for selling these goods cheaply (or even advertising them for free) as well as even being able to take over the apartment or house they lived in with lots of these goods included as well. A great place to pick up a bargain!!!

Another area you undoubtedly need to know your stuff within Switzerland is when it comes to the rules. There are so many things that you need to know, & the best places to be able to ensure your finger is kept firmly on the pulse are the likes of www.swissinfo.ch/eng as well as www.ch.ch/en & also www.thelocal.ch where you can learn about everything from registering & de-registering from the area you live, to which health insurance to pick, to which upcoming popular vote is coming up next, to which public holidays are celebrated in your area.

Getting around & enjoying activities is also another big thing that is very popular here in Switzerland, & sites like www.sbb.ch for how to get around & pick up discount travelcards, to sites like www.getyourguide/ch are key to discovering what there is to do in & around the cantons that are local to you & beyond. Now, whether you want to find a nice restaurant serving local fare, or just don`t fancy cooking & want a nice night in front of the sofa watching TV, www.roughguides.com/switzerland/eating-drinking & www.smood.ch will soon see you feasting on something delicious.

You will find forums & specialist groups within all of these webpages with social media links that will offer you expert tips & guidance on how to be able to quickly learn the basics & not be hit too hard in the pocket doing it. Switzerland is well renowned for being an expensive place, but it`s also somewhere that value for money can be found if you`re willing enough to go & look for it!

All in all, it`s sites like these that people join for the benefits of being able to attain key information the can use very easily. I leave you with this thought: the fact that one our managers, who is undeniably challenged by technology, can easily find out all the information he needs when he wants to is testament to the fact that sometimes social media & the internet can be a very useful tool to all of us get the job done!!!

Happy hunting people!

The dream is becoming a reality. But taking the time to plan is important.

There are additional costs to consider. Moving expenses, time off to prepare, storage facilities, rental contracts, mortgages, household bills, tax bills, extra winter clothes (The weather in Zurich is somewhat different than Lisbon during winter).

Bills and expenses don’t stop when you move to a new country. In most cases they’ll increase before your move. Make sure you’re saving some cash each month before you move to cover these additional costs. If you need to take on debt, take a low-cost loan or use interest free periods on credit cards in your home country – you don’t want to take on debt as soon as you land. We would all like to believe we will be successful, and everything will work out, but always have a plan B and short-term savings will help you achieve this.

2. Just Arrived

You may find that whist acclimatizing you eat into your savings – generating a social circle will be important to help you feel comfortable in your new surroundings. Social spending may increase in the short term and there are a few key areas that you need to be address.

Understand your new tax environment. Low taxes are great, but what help will I get from the state? What if I’m ill? What if I can’t work? What happens when I die? What will happen to my family?

It is more than likely that without addressing these issues you run the risk of financial ruin. Policies that you previously had in place may now be invalid. For example, most Life Insurances taken out in the UK will not cover you for prolonged periods abroad. Health insurance is a big one. Switzerland has a relatively complex Healthcare system, for any newcomer. A review of what you have and what you need immediately is essential. Don’t let your loved ones suffer, make the future safe and protect what you can and what’s most important to you.

Understand what you are entitled to from your old tax environment. Not sure if you’ll be staying long? You have a 3 to 5-year plan and you’re going to return home? Want to spend more than 3 months back ‘home’ each year?

Generally speaking, if you call the UK ‘home’ and you spend more than 90 days there you could be deemed a resident and therefore taxed as such. In many cases, the time frame could be shorter depending on how many ties you have with the UK. Understanding your position is key to avoiding expensive mistakes. If you are deemed a UK tax resident your income could be liable to UK tax.

As an expat, you can also still contribute to the UK tax system through National Insurance contributions and benefit from accruing things like the State Pension. You can also contribute into a UK pension scheme up to £3,600 gross per year. Many pension schemes will give you basic rate tax relief at source and therefore it will only cost you £2,880 each year. There is a time limit on this ability and you can only do this for 5 years after you’ve left the UK.

Knowing what you don’t know, is a skill we ignore all too often. Speak to those that do.

3. One Year In…

You’ve survived the first year! By now you should have a good idea about what’s coming in and what’s going out every month. If you don’t you should do. Budgeting is key to understanding where your money is going and how much extra you have at the end of the month. Expats enjoy a healthy salary and have the opportunity to secure their financail future. Don’t waste it.

Make the most of what you have where you live. In Switzerland you have access to very tax efficient savings vehicles. Planning early enables you to take advantage of tax savings earlier, and you’ll benefit from compound growth, the eighth wonder of the world! You don’t need to save a lot each month if you start early enough.

Start to set goals for what you want to achieve. The kids’ future, your retirement. We’re more likely to get to where we want to go if we have a map. Split the goals into short term, midterm and long-term goals. Remember to stay liquid and have enough cash for an emergency.

Where are you going to invest? Think about your currency exposure. This will be a new risk to consider if this is your first time working abroad. Reduce the risks you can. And save in a currency that you will likely spend in the future. This might be spread across different currencies in different jurisdictions.

4. Three Years In…

By now you’ll have your routine set. You know all the good places in town and the career is going from strength to strength. You may have more disposable income and re-budgeting and keeping on track is key to realising those goals you set yourself. All too often wage increases coincide with lifestyle changes and we tend to forget the longer term objectives.

New life events are a common theme for seasoned international workers, whether this be a new child, children starting school, marriage, family death, divorce… life goes on and your ability to withstand and build after these events will largely depend on the planning you have made previously. Reviews and readjustments are a part of life and yours goals may alter. You might be starting to think about that magic number? What is yours? What do you need to leave, to start a new life somewhere?

You might be thinking about disposing or selling assets down in your home country. In the UK for example, after three full tax years, certain assets can be sold capital gains tax free in the UK for non-residents. That stock holding from a previous employment, your investment account with the bank – now is the time to consider your options.

What about that UK Pension? How’s that getting on? Do you know what you’ll get from it? What if you die before taking it? When looking at your assets based in different countries, don’t forget about your pension. It can be one of the most valuable assets that you own and if you don’t look after it, it may not be able to look after you!

5. Ten Years In…

A seasoned veteran expat. Your advice to new comers is essential and you will have learnt from your experiences. But how long are you planning on staying? What’s the exit plan? Have you saved enough, or do you need to do more?

By now you need to know what income level you need in retirement and how far you are away. Funding any shortfall whilst you can will be invaluable for your financial future.

You might be in a position where you’ve built up assets in a rather random fashion and need to reorganise what you have. Making use of the right tax wrappers and ensuring you put these in place well before you leave will only benefit you financially in the future. For example, international investment bonds offer savers time apportionment relief from tax – i.e. the longer you’ve held the policy internationally, the lower the tax burden will be if you return to the UK. Even if you top the policy up at a later date, the date of the relief is given from the day you took out the policy. Couple this with other tax advantages, such as tax deferred withdrawals and optimising the use of international trusts and you might just have saved thousands, if not hundreds of thousands in tax.

6. Leaving and Heading Home

Your time has come but it’s not too late to make some small changes that will have a big impact. Whether you’re leaving to enter retirement, you’re home sick or just finished one step in your career to take another, there are certain things you can do.

Depending on where you are heading next, make sure the assets you hold are in the most tax efficient vehicles. Forgot about any stock holdings with large capital gains? Think about crystallising those gains and rebasing the assets. Use the right tax wrappers to protect your capital from any taxes on growth or income. Think about how your investments are structured, do you need an income from them? How much do you need? Much the same as when you first arrived, there are factors to consider around increased short-term costs and any debts should be paid off before you get on that plane.