oh Boy, what a 2016 start

Dear friend,

I am sure that you thought that we left the net after one month without a post. No, we are still on the air, but so many things happened that I had no time or too tired to write new articles.

I will summarize, what happened during the last month:

  1. With Mrs Retired, we took a big decision by buying an apartment in Switzerland (more details to follow in specific posts)
  2. On the 2nd of January, Retired50 celebrated ONE YEAR anniversary!!!
  3. The market goes crazy and the variability is not controllable
  4. First step in preparation of the min 20% equity to put down for the purchase of the appartment (sold SwissRe and Roche shares)
  5. Meet with banker for the first mortgage meeting

So, I am preparing some articles to explain you what is required to buy a house/apartment in Switzerland .

Wish you a good weekend

Cheers, RA50

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Potential very good news

Dear all,

We just finished completing our 3014 tax declaration and we believe that a very surprise is coming. Clearly we need that the tax office agrees on the different items but we probably over paid in 2014. Here in Switzerland, we pay account every month (based on previous year) and then the reconciliation is performed once you have completed the tax declaration.

In 2014, we paid 71’100 CHF of accounts and based on our calculation, we should have paid only 60’000 CHF. So we should have a return of 11’100 CHF. We will not get directly get the cash back but the tax office will reduce our monthly account payment. That will boost our saving rate for 2015!

The big question, is what to do with this additional cash. We have different options, clearly the one I would prefer is to re-invest the amount into high dividend yield companies. Another option, would be to increase our emergency found to cover 2 months expenses, at the moment, we have only 1 month covered expenses.

Next year, we are planning to change our car, so it could be as well the part of the entrance fee for the leasing.

Any advice from your side?

Cheers,

RA50

Grocery bill Challenge – FAILED

Dear all,

We would like to share with the results of our May Grocery bill challenge, which is written in the title tag we failed by a large distance. To remind you our grocery bill challenge was to achieve 560 USD of groceries (Monthly grocery bill), so we finally achieved 751.50 USD, slightly lower than our average 800 USD per month.

What are the reason of this failure, some purchases of several cleaning products (clothes) which are really expansive here in Switzerland, clearly the will last for more than one month, but I will not split the cost over month. We have been invited to dinner at 2 occasions and had to buy some wine for our hosts. so all in all, these additional expenses summed to 106 USD.

We would still failed the challenge by 85.5 USD, we must say that the target was really hard to achieve and not sure we can achieve it one day.

But it was a funny experience and we enjoyed it. We will continue to strive to reduce our grocery bill over time, finding new tricks to save on groceries.

What about you, have you tried the grocery challenge? I encourage you to try.

Cheers,

RA50

Net worth update May

Dear all,

I took the opportunity to update our net worth page based on the our company pension fund annual report (Net worth). In the past, we were not taking in account this value, but considering that, if we leave Switzerland, we will get the full amount, I thought interesting to budget it.

So our net worth, significantly increase by 341’000 CHF to reach a total of 1’469’660 CHF or 1’572’537 USD.

The snow ball continue to roll and roll and roll.

Cheers,

RA50

Mentor and coach, my mother!

Hi

One thing, I learn from my father is that, you must avoid debt at all cost, he has been working hard all his life until he passed away (R.I.P), leaving my mother in massive troubles because of the 8% mortgage per year  on a 14 rooms mansion, my mother, 50 at that time was not working, so no income.

She battle for around 10 years, trying to understand all the finance stuff, mortgage and a life insurance court action. I don’t know where she get the courage to wake up everyday and having a smile on her face to wish me good luck for my studies.

She is my hero!

I learn so much form her, that I alway says that I would not make the same mistake than my father and would work hard as well and save the maximum of money to guaranty that Mrs RA50 will not face the issues.

So, we are DEBT free, with a capital of more than 1 mio USD, a small property and most importantly a good health!

I wish you, readers, to have achieved or to achieve it in the future, this beautiful feeling to wake up every morning with peace in mind.

Cheers, RA50

Grocery bill Challenge

Dear all,

I mentioned some time about the high prices of good and services in Switzerland. By reading some of my favorite blog like ¨Rich Neighbour¨ where they made a grocery challenge (February Challenge: Fail & Success) to limit there grocery bill to 240USD vs. 400USD in January.

I found the idea excellent and will replicate it to see if we can reduce our grocery bill. RN targeted a 60% reduction, I am really confident that we cannot try that, so for the month May, we will try to reduce our grocery bill by 30% or targeting a bill of maximum 560USD vs. our 2 years average bill of 800USD.

I will keep you updated at the end of May to check if we win the challenge.

Cheers, RA50