Blogger Saving Rate INDEX (Silver Badass Saver).

Dear Friend,

Mustachian Post another Swiss FI blogger created 2 years ago the Blogger Saving Rate Index, this year results was published in his last post (Blogger Savings Rate Index 2016).

Last year, we obtained the Silver medal with a saving rate of 44.3%, this the best rate we obtained so far. Let’s see if we can continue like that in 2017.


Check-out the others Badass savers from his excellent blog. MP is inspirational for me and we funny enough, we were working on the same project buying our own house. He completed this project before us. As you know we will move in our own apartement in 2018, still 1.5 year to go.




2016 Bonus (Variable Incentive Compensation)

Dear FI seeker,

First of all, a HAPPY NEW YEAR to all of you!

Last Friday, I had my 2016 performance review with my boss, where we discussed, the objectives achieved or not, what I should develop in 2017, etc.

As usual, at the end of the discussion is the long awaiting performance rating. This rating will drive my Incentive Compensation (IC or Bonus) as well as the salary increase for 2017.

To remind you how the IC is it calculated: you take your “Annual Base Salary – ABS” X “Employee Performance Rating –  EPR” X “Company Performance Rating – CPR” = IC. The scale for the EPR and CPR varies from 0% to 150%.The IC is paid cash with the February salary.

In 2015, the CPR was 130% (spectacular year) and my EPR was 105%. This gave us 53’000 CHF gross bonus (2015 Bonus (Variable Incentive Compensation)).

Ok, let’s stop the suspense now as I am sure you are waiting like me to see how much, we will cash this year.

So my 2016 EPR was 110% and our board of directors have review the company performance vs. objectives and they decided to allocate a CPR rating of 110%.

Therefore, my gross bonus is 48’000 CHF!

YES, YES, YES, that’s an excellent news and I am very very happy! ok, it’s 5000 CHF lower than last year, but it’s no due to my own performance.

This cash will be invested in high dividend stocks, I am still looking at which company(ies) in which to invest, but I have my view on Roche (ROG.VX) again to increase our position. Roche is a Swiss Pharmaceutical company which has a very nice dividend payout ratio 3.58% in 2016, which is expected to be around 3.77% in 2017.

Will keep you posted when the purchase is done.

Cheers, RA50




Transformation of construction credit in Mortgage

Dear All,

Yesterday, I had a meeting with our banker. He proposed to start exchanging our construction credit into a fix mortgage. So far we used around 535’000 CHF out of 1mio CHF of our credit. If you remember the rate for a construction credit is 2%, therefore when my banker proposed me a mortgage rate of 1.55% for a period of 10 years, I signed. We will save around 2’400 CHF per year. He has another good deal for a 5 years mortgage at 1%, but I cannot signed it yet has we have not spend more on our construction credit.

I expect another payment of around 121’000 pretty soon as the construction is going quite well, now they have reach the 5th floor, which is our floor :-).

I wish you all of you a Happy New Year 2017; hope that this New Year will bring you happiness, joy and lot of savings!



Update on the purchase of our apartment

Dear all,

I would like to update you on where we stand on the purchase of our apartment.

So to recap it is what we paid so far:

  • 14th of June: Account for the land purchase = 142’000 CHF
  • 13th of October: Final payment of the land purchase + Notary fee = 175’000 CHF
  • Meaning we still had 212’970 CHF of our equity

As you know based on Architect contract Mortgage for our new apartment, we have down payment to execute at different stages of the construction. The payement schedule, I described in the post linked (above) has been updated when we signed the contract. Therefore the first payement was 60% of the apartment value minus our own equity. So we received a bill of 729’600 CHF, I can tell you this is the largest bill ever, I received and have seen. I sent this bill to our banker to pay and to engage our construction credit. It was paid on the 25th of October.

We have now started the world of debt, which as a value of 516’630 CHF.

The next down payment, will be of 10% when the constructor reach the 3rd floor, based on the status of the construction, I am expecting to happened in Q1 2017.

And you any news?




Portfolio Increase

Dear all,

I am pleased to announce that we purchased 52 shares of Roche (ROG.VX) at a cost of 233.7 CHF, including the taxes and broker fees, our new selling price is 257.9 CHF vs. 266 CHF that we had with the 110 shares we own before

Considering the actual dividend distribution (8.40CHF), our 2017 dividend distribution  will be 830 CHF net. But we are planning to continue investing in early 2017, when I will receive my annual bonus, I am expecting to invest around 30’000 CHF.

The portfolio page has been upgraded.

Any purchases from your side?



Blogging or resting


Dear FI seeker,

You may wonder why, our blog remains empty for weeks? The main and only reason is that I am so exhausted after 11-12 hours of work + having 1h30 min of commuting every day that my brain just need some rest, a good dinner with my lovely wife, some reading and sleep, which unfortunately these days is not always coming quickly, therefore when the alarm clock ring at 5 AM, I am like a zombie. But I am lucky, a shower a coffee and then I am like new.

As you remember, I change work in October 2015 (Job, functional move and salary increase), with more responsibilities, a team, a good project on hand and salary + bonus increase.  But due to a strategic decision from our Senior Management Team taken 18 months ago and a massive project deadline for the end of this year, we are sinking in hours of works, to identify gaps, issues and trying to solve as soon as possible.

On top, one of the project manager that is working in the same team, had a burnout, guess what, we had to relocate our resources, to ensure that his work would be done.

So, after almost on year, minus 20 days, I am very often thinking if that move was the right one for me.

Ok now from the positive side, nothing special for our apartment, I received the offer from the electrician, which we already review during a meeting. Now waiting the revised offer, hoping that would the last one. So we should be close to 6500 CHF of added-value, but if you remember my negotiation with the Architect (Discount on our future apartment), where I have been able to negotiate 15’000 CHF of reduction, we are fine, even if I had the 6000 CHF of the bathroom added-value we have a total of around 125000 CHF. So the 2500 CHF will allow buying the washing machine quite easily.

Dear friend, I wish you an excellent weekend, hopefully for you has beautiful that in Switzerland.

Cheers, RA50

Update on the purchase of our apartment

Hello dear FI,

Below some update on where we stand on the purchase of our apartment.

As we are buying on drawing, we have specific budgets for the Kitchen, Bathrooms (2x) and electricity. For the last couple of weeks, we have visited the different companies that must use which are defined by the architect.

Kitchen: our budget is 30k CHF, 2 kitchen builders are proposed. 3 weeks ago, I went to the first one and we just received the final quotation last Friday. We had a good surprise as we are around 500 CHF below budget. Yesterday, I visited the second company, and too my surprise, the design of the kitchen was very different, so I have ask to redesign to be like the first one, which is much more practical and nicer and the electronics (oven, fridge, washing machine) selected was lower models than the first company. So based on this discussion, I don’t think we will work with them.

Bathroom: our budget is 14.5k CHF for 2 bathrooms, a big one and a small one. I must say that after visiting the company that will provide it, this budget is very small, especially as we want to make some changes (Italian shower vs. bath tube) and a double sink vs. one sink. Our budget exploded by 6k CHF to around 21.5kCHF

Electricity: budget not known but we know the number of electric appliance and light points and if you want to see something at night, there is no way that you can just agree with the budget. Therefore, during the meeting with the electrician, I increased the number of electric appliance and light points. The apartment is coming with domotic, I have selected quite nice feature. So I expect the quotation, to increase by 5k to 6k.

So overall for the 3 points of the personal modifications, I estimate that we will be additionally by around 12-13K. Well that’s not a problem, as we got a special discount of 15k when I negotiated the price of the apartment (Discount on our future apartment). So we are still within our budget and we can still buy/update some of the positions.

Later, we will need to chose, the tiles (bathroom) and the wooden floor, but I believe with the budget, we should remain fine.

And you, any news anything particular?

As said, at the moment, nothing happened on the market side, we have not purchase anything as we must recharge our accounts.