Like the difference between money in the bank vs money in the stock market — except both are tax-advantaged. The return difference determines your pension gap.

Over 40 years: CHF 7,258/year deposited. Cash account at 0.5%: ~CHF 320,000. Securities at 5%: ~CHF 880,000. Securities at 7%: ~CHF 1.45M. Difference: over CHF 1M.

30-year-old deposits maximum into 3a for 35 years: cash (0.5%): CHF 280,000. Securities (7%): CHF 1.07M. Difference: CHF 790,000 — just by the right 3a choice.

Like an international network against tax evasion: banks automatically report foreign account holders to their home countries.

Effectively the end of classic banking secrecy for foreign clients. Switzerland exchanges with EU states, US (FATCA variant), G20 countries. With most low-tax jurisdictions: no AIA.

German client with CHF 200,000 at Swiss bank: bank reports account, interest income and capital annually to Federal Central Tax Office, which forwards to German tax office.

Like a basic insurance: it covers the minimum, but not your usual standard of living. The maximum AHV pension is CHF 2,450/month (single person) — barely enough to live on in Switzerland.

AHV only covers ~60% of your final income (together with your pension fund). The remaining gap has to be filled privately — through Pillar 3a and free investing. This is exactly where arvy comes in.

Maximum AHV pension 2026: CHF 2,450/month (single), CHF 3,675/month (couple). Minimum pension: CHF 1,225/month. Contributions: 8.7% of gross salary (4.35% each employer/employee).

Like a mandatory donation to the solidarity system: today's generation pays for today's pensioners. You yourself are financed by the next generation.

There's no upper limit: even on a CHF 10M salary, you pay 4.35% AHV contributions. Hence: top earners finance the system disproportionately.

At gross salary CHF 120,000: AHV/IV/EO employee share CHF 5,220/year (4.35%). Employer pays the same. Total CHF 10,440/year into the system.

Like halving incomes during marriage: what both paid into AHV during marriage is halved and credited equally to each.

Beneficial for the lower earner (typically the parent who raised children). Disadvantageous for the main earner — can reduce their maximum pension.

Husband earns CHF 150,000, wife CHF 30,000 (during childcare). After splitting, both are treated as if they earned CHF 90,000 each — fairer.

Like a mandatory KYC programme: 'Know Your Customer' — before you open an account in Switzerland, the bank must know who you are and where your money comes from.

Day-to-day impact: account opening with passport identification, source of funds documentation for larger deposits (>CHF 100,000), declaration of beneficial ownership. Protection against criminal money.

Swiss client opening arvy account: passport copy + proof of residence. Deposit of CHF 250,000: source-of-funds proof (e.g. inheritance certificate, house sale contract). Standard compliance, not harassment.

Like a bakery that either invests its profit in new ovens (accumulating) or distributes it to owners (distributing).

In Switzerland there's a tax difference: distributions are subject to income tax. Accumulating funds reinvest tax-free.

The arvy equity fund is accumulating — dividends are automatically reinvested, maximizing the compound effect.

Like the difference between an original recipe and a copy: active share shows how much 'original' is in the fund, vs being an expensive index copy.

Research (Cremers & Petajisto): funds with active share >80% beat the index more often. Below 60% = closet indexer, statistically no outperformance despite higher fees.

arvy equity fund: active share ~42% (34 stocks strongly differing from MSCI World). Classic Swiss bank fund: often 20-30% — almost index replication with 1.5% fee.

Like a written power of attorney for the worst case: if you can no longer decide yourself, your advance directive determines who decides for you.

Without an advance directive, the KESB (child and adult protection authority) decides — often delayed and not in your interest. Especially important for unmarried couples.

Handwritten advance directive: fully handwritten, dated, signed. Notarized: ~CHF 500-1,500 depending on canton. One of the most important insurances that costs nothing.

Like a stress test at the doctor: the bank checks whether your income can handle a mortgage even at significantly higher rates. The 5% calculated rate is deliberately conservative.

The affordability rule is the main reason many Swiss can't finance a home despite high incomes. Banks are regulatorily required to apply this rule.

Gross salary CHF 120,000. Max burden 33% = CHF 40,000/year. At 5% calculated rate, this allows a mortgage of max ~CHF 700,000.

Like bonus points: the index is the standard. Alpha is everything above it — hard to generate but valuable.

Generating alpha is difficult. But quality companies with strong moats have historically delivered alpha.

MSCI World +10%, arvy +12% = +2% alpha. Long-term alpha is the goal of active asset management.

Like wealth building in installments: with each payment, you build equity in your home. Direct amortization = money goes to the bank. Indirect amortization = money goes to Pillar 3a, serves as collateral.

Indirect amortization via Pillar 3a is usually more tax-attractive: mortgage interest stays high (tax deduction) and you save additional taxes via the 3a deposit.

Mortgage CHF 800,000 on house CHF 1M: must be amortized to max CHF 666,000 within 15 years = CHF 134,000 amortization = CHF 8,933/year.

Like a first impression that can't be corrected: you paid CHF 100 for a stock — this price stays mentally as your reference, even when irrelevant.

Practical consequence: sell decisions are too often made based on entry price rather than current market value. 'I'll wait until it's CHF 100 again' can be a multi-year mistake.

Stock bought at CHF 100, falls to CHF 50. You wait years for 'return to CHF 100'. But: meanwhile, you could have invested the proceeds in a better opportunity.

Like the composition of your meals: only protein (stocks) makes you strong but is one-sided. Only carbs (cash) gives security but few nutrients. The right mix matters.

Asset allocation matters more than picking individual stocks. A 25-year-old with a 30-year horizon can hold 80-100% stocks. A 60-year-old should invest more conservatively. arvy offers three profiles: Growth, Balanced, Defensive.

arvy Growth: ~90% stocks, ~10% cash/bonds. arvy Balanced: ~60% stocks, ~40% bonds. arvy Defensive: ~30% stocks, ~70% bonds.

Like a dual accident insurance at work: one during work, one in leisure time. Both automatically via the employer.

Important: those working less than 8 hrs/week or self-employed must take out private accident coverage via their health insurer.

Ski accident on a Saturday with CHF 50,000 hospital costs: fully covered by Suva (non-work accident). Wage replacement 80% until recovery.

Like simplified inheritance for 3a assets: the order is legally fixed, but within the levels you can choose.

Order: 1. Spouse → 2. Direct descendants, cohabiting partner (5+ years), supported persons → 3. Parents → 4. Siblings → 5. Other heirs.

Unmarried person with cohabiting partner (4 years): partner is NOT a beneficiary. Upon death, parents inherit 3a assets. Important: register cohabiting partner early.

Like the legal minimum at work: the employer must offer at least the BVG minimum.

Many pension funds provide more than the minimum. But the 6.8% conversion rate only applies to the mandatory portion — supra-mandatory assets can be converted at lower rates.

Mandatory BVG assets of CHF 300,000: 6.8% = CHF 20,400/year pension.

Like a trust protection between bank and customer: what you entrust to the bank stays confidential. Generally still effective for Swiss taxpayers.

For Swiss residents, banking secrecy generally remains — as long as no criminal suspicion. For foreigners with Swiss accounts: effectively abolished by AIA.

Swiss taxpayer with CHF 500,000 at UBS: banking secrecy protects against FTA data inquiry (except in criminal proceedings). German with same CHF: data automatically reported to Munich tax office.

Like winter in the garden: uncomfortable, but necessary for new growth. Bear markets clear out excesses and create buying opportunities for patient investors.

Every bear market of the last 100 years was followed by a new bull market. The S&P 500 has recovered without exception — the question isn't whether, but when.

Since 1950 there have been 11 bear markets in the S&P 500. The worst: 2007-2009 (-57%). The subsequent recovery delivered +400% over the next 10 years.

Like a mirror for your investor weaknesses: it shows why you sell in crashes and buy in booms — even though logic demands the opposite.

Practical value: those who know their own behavioral patterns can control them. Most investor mistakes aren't knowledge gaps — they're emotional reactions.

Classic experiment (Kahneman): 90% choose 'sure gain of CHF 80' over '85% chance of CHF 100'. Expected value CHF 85 is rejected — pure risk aversion.

Like the average marathon time: you need a reference to know if you're doing well or poorly.

Benchmarks create transparency. If your portfolio beats the benchmark long-term, the fee is justified.

The arvy equity fund is typically compared against the MSCI World. The goal: long-term, better risk-adjusted returns through the selection of quality companies.

Like temperature sensitivity: some people freeze at 18°C (high beta), others only at 10°C (low beta).

Defensive quality stocks have beta <1 — they fall less in crashes. arvy has moderate beta through its quality focus.

Nestlé beta: ~0.6. Tesla: ~2.0. Visa: ~0.9.

Like Swiss watches: reliable, proven, high quality. Blue chips are the Nestlés, Microsofts and Visas of the stock market.

Blue chips form the foundation of a solid portfolio. They provide stability in downturns and solid growth in good times. The arvy portfolio consists 100% of blue chips and quality stocks.

The SMI contains all Swiss blue chips: Nestlé, Roche, Novartis, Zurich Insurance, ABB.

Like lending money to a friend with a contract: you give him CHF 1,000, he pays you 3% interest per year and returns the CHF 1,000 after 5 years.

Bonds provide portfolio stability. In stock market crashes, equities often fall 20-40%, while government bonds stay stable or even rise. That's why a balanced portfolio typically holds 30-40% bonds.

A 10-year Swiss government bond currently pays ~0.5% interest. German Bunds ~2.5%. US Treasuries ~4.5%.

Like what would remain if you closed the company today and sold everything at book prices. A very conservative estimate.

For modern companies (software, branded consumer goods), book value is largely irrelevant — true value lies in intangible assets barely on the balance sheet.

Apple book value per share: ~USD 4. Stock price: ~USD 200. Market value is 50x book value — the brand and iPhone ecosystem aren't on the balance sheet.

Like insurance for the shell of your house: while household insurance protects the contents, building insurance protects the structure.

In 19 cantons monopolistically through the cantonal building insurance — no choice. In 7 cantons (UR, SZ, OW, NW, AI, AR, GE, VS) freely selectable.

Single-family house insured at CHF 1M: premium ~CHF 800-1,500/year incl. natural perils (hail, storm, flood, avalanche).

Like spring and summer: the longer, more pleasant phase. Bull markets typically last 3-5x longer than bear markets.

The good news: bull markets last significantly longer than bear markets. Historically ~78% of all stock market months have been positive.

The longest bull market in history: March 2009 to February 2020 — almost 11 years, +400%.

Like a good wine in the cellar: you buy quality, forget it for 20 years and enjoy the result at the end.

Statistically superior: studies show buy-and-hold investors outperform active traders by 1-3% per year — due to lower costs and fewer bad decisions.

CHF 10,000 in S&P 500 from 2000 to 2024 (buy-and-hold): ~CHF 55,000. Missing the 10 best days (market timing): only ~CHF 25,000. Difference: CHF 30,000.

Like waiting for sales: when your favorite stock loses 15%, it's 'on sale' — provided the business model remains intact.

Comparison with DCA: both use volatility, but buy-the-dip is more active. Studies show it works better with quality companies than with speculative stocks.

S&P 500 falls 10%: investor buys additional. If the index rises +20% over next 12 months (historical average after 10% dips): significant gain vs no buy.

Like the constitution for Swiss funds: anyone managing many investors' wealth jointly must comply with CISA — protection against abuse and opacity.

CISA status is a strong trust foundation: fund assets are segregated as special assets, protected in case of management company insolvency. Most important investor protection in Switzerland.

The arvy fund is CISA-regulated: fund assets are held at the custodian bank as special assets, separated from arvy's company assets. If arvy went insolvent: your invested money is safe.

Like entry fees for living in a municipality: each one charges a different markup. In Wollerau you pay a fraction of what you'd pay in Lausanne.

In Switzerland, choice of location is more decisive for taxes than in almost any other country. Tax-attractive municipalities: Wollerau, Freienbach, Baar. More expensive: Lausanne, Bern, Neuchâtel.

Gross salary CHF 150,000, single: Wollerau (SZ) ~CHF 15,000 cantonal/municipal tax. Lausanne (VD): ~CHF 28,000. Difference: CHF 13,000/year.

Like a gift from the state to investors: if your portfolio grows from CHF 100,000 to CHF 200,000 and you sell everything, you keep the entire gain.

Tax-free capital gains make Switzerland one of the best places in the world to invest. Note: dividends are taxable as income.

Portfolio growing from CHF 500,000 to CHF 1,500,000 over 20 years: capital gain = CHF 1,000,000. In Switzerland: CHF 0 tax. In Germany: ~CHF 264,000.

Like bonus points in pension calculation for unpaid care work. Those raising children aren't penalized in AHV.

Important for mothers (and increasingly fathers) who worked part-time. Can increase the AHV pension by CHF 200-500/month.

Mother with two children, worked part-time: child-raising credits increase fictional income by ~CHF 45,000/year for 16 years. AHV pension rises by ~CHF 350/month.

Like a second layer of cost-sharing: even after the deductible, you still pay 10% — up to the annual cap.

Important for budget planning: maximum annual out-of-pocket = deductible + CHF 700 co-payment. At CHF 2,500 deductible: max CHF 3,200/year.

Medical costs CHF 5,000, deductible CHF 300: co-payment = 10% of CHF 4,700 = CHF 470. You pay total CHF 770. Insurer pays CHF 4,230.

Like a multi-family building's janitorial service: several parties share the infrastructure of a pension solution. Cheaper than a separate foundation per company.

Collective foundations are more transparent and often cheaper than in-house pension funds. Key selection criteria: funding ratio, conversion rate, costs and investment strategy.

Well-known Swiss collective foundations: Swiss Life, Helvetia, AXA, Vita. Together they manage assets in the hundreds of billions.

Imagine a snowball rolling down a hill. At first it's small. But with each rotation it gathers more snow — and the bigger it gets, the more it gathers per rotation.

Albert Einstein reportedly called compound interest the 'eighth wonder of the world'. At 7% return, your money doubles every 10 years. CHF 10,000 becomes CHF 80,000 after 30 years — without adding a single franc.

CHF 500/month at 7% return over 30 years: you deposit CHF 180,000, but your final wealth is CHF 610,000. CHF 430,000 — over 70% — comes from compound interest alone.

Like buying an apartment instead of renting: you own your unit and a share of common property (stairs, elevator, roof).

Important to check: regulations and renovation fund. A well-funded renovation fund means no nasty surprises with major repairs.

Apartment 100 m² in Zurich CHF 1.2M: ownership share e.g. 8/100 (8%) — for common expenses of CHF 50,000 (e.g. roof renovation) you pay CHF 4,000.

Like reading only newspapers that agree with you: you only read positive news about your stocks, ignore critical voices. Feeling: 'I'm right.'

Dangerous with concentration risk: those with 50% of wealth in one stock don't want to hear bad news. Exactly then is when one is least objective.

Tesla investor reads only Tesla-bullish analysts, follows only Elon fans on Twitter. When the stock falls: 'Shorts are to blame' — rather than questioning.

Like an exchange rate: it tells you how much monthly income your capital 'buys'.

The conversion rate has been falling for years — because we live longer and rates are low. Many funds now offer only 5.0-5.8% instead of the 6.8% BVG minimum.

With PK assets of CHF 500,000: conversion rate 6.8% = CHF 34,000/year. 5.0% = CHF 25,000/year. Difference: CHF 9,000/year.

Like a deductible in insurance: the first CHF 26,460 of your salary aren't covered by the pension fund — those are covered by AHV.

The coordination deduction strongly disadvantages part-time workers and low earners. At a salary of CHF 30,000, only CHF 3,540 remains insured — minimal.

Salary CHF 80,000 − coordination deduction CHF 26,460 = insured salary CHF 53,540. Contribution rate e.g. 12% = CHF 6,425/year into the pension fund.

Like dancers: +1 = synchronized. 0 = independent. -1 = opposite. Low correlation = good diversification.

The key to diversification. Stocks + bonds: correlation ~0.2 — when stocks fall, bonds often rise.

Stocks-bonds: ~0.2. Gold-stocks: ~-0.1. US stocks vs. EM: ~0.7 (limited diversification).

Like buying souvenirs abroad: if the euro falls afterward, your souvenir is worth less in CHF.

CHF historically appreciates ~1-2%/year vs EUR/USD. This reduces foreign returns — but is often compensated by higher market returns.

USD/CHF: 1.30 (2014) → ~0.88 (2026) = 32% currency loss. But S&P 500 +200% — overcompensated significantly.

Like the main account for all daily money movements: salary in, rent out, card transactions. Not a savings account.

Rule of thumb: 1-2 monthly salaries in current account suffice for liquidity. More is money inflation eats up. Emergency reserve in savings account, rest invested.

Swiss with salary CHF 8,000: current account should hold CHF 8,000-16,000. Emergency reserve CHF 24,000-32,000 in savings account. Anything above: invest.

Like storage costs for furniture: you pay for someone to safely store your securities.

Custody fees are a hidden cost many investors overlook. On CHF 100,000 in assets at 0.2% custody fee, you pay CHF 200 per year — just for storage. At arvy, custody fees are included in the all-in costs.

Raiffeisen: CHF 50/year minimum. UBS: 0.2-0.5% p.a. Swissquote: CHF 60/year minimum. arvy: CHF 0 separately — all inclusive.

Like a voucher for paid US taxes: if you can prove that the US already withheld 15% from your US dividends, you can credit this amount on your Swiss tax return.

Failing to file the DA-1 effectively means double taxation on US dividends — once in the US, once in Switzerland. For a larger US-heavy portfolio, losses quickly add up to hundreds of francs per year.

Portfolio with USD 30,000 in US stocks, 2% dividend yield: USD 600 dividends, USD 90 (15%) US withholding. Without DA-1: CHF 90 loss. With DA-1: full refund.

Like a mortgage relative to home value: CHF 800,000 mortgage on a CHF 1M house = D/E 4.0 (risky).

Low leverage = quality trait. arvy prefers conservative balance sheets.

Microsoft D/E: ~0.3. Nestlé: ~1.0. Banks: >10. Airlines: >3.

Like a downward spiral: prices fall → consumers wait → revenues fall → wages fall → consumers have less money → prices fall further.

Bad for stocks (profits fall) and debtors (real debt rises). Good for creditors and cash holders. Central banks fight aggressively — see SNB and ECB in the 2010s.

Japan Nikkei: 1989 high 38,900. Today (35 years later): ~38,000 — nominally flat despite global growth. Due to decades of deflation.

Like an insurance for your bank account. But: securities in your custody account belong to you — they don't need deposit protection.

Less relevant for investors than for savers. Stocks and funds are segregated assets — they don't fall into the bankruptcy estate.

Your arvy portfolio is held as segregated assets at the custodian bank. Even in insolvency of the custodian, the fund shares belong to you.

Like hiring a professional chef for family dinner: you set the framework (budget, allergies) — he cooks without asking you about every step.

Advantage: no decision fatigue, professional discipline. Disadvantage: you give up control and pay a fee (typically 0.5-1.5% per year). Important: strategy choice + cost clarity + provider reputation.

CHF 500,000 mandate at classic Swiss bank: ~1.5% all-in fee = CHF 7,500/year. At a modern FINMA-regulated provider with clear strategy focus: often 0.5-1.0% = CHF 2,500-5,000/year. Over 20 years: CHF 50,000-100,000 difference.

The famous 'don't put all your eggs in one basket' principle. If one stock loses 50% but you own 34 different ones, the impact on your overall portfolio is small.

Diversification is the only 'free lunch' in investing — you reduce risk without sacrificing returns. The arvy portfolio is diversified across 34 quality companies in various sectors and countries.

The arvy portfolio contains companies from technology (Microsoft), consumer goods (Nestlé), luxury (Ferrari, LVMH), healthcare (Stryker) and financials (Visa).

You own a share of a company. The company makes a profit. It distributes part of that profit to its owners — that's the dividend.

Dividends historically account for about 30-40% of total stock market returns. Quality companies like those in the arvy portfolio typically grow their dividends by 5-8% per year.

Nestlé currently pays ~CHF 3.00 dividend per share. At a price of ~CHF 95, that's a dividend yield of ~3.2%.

Like a savings account interest rate for stocks. 3% dividend yield = CHF 300/year on CHF 10,000.

High yield isn't automatically good — it can mean the price has fallen (value trap). Quality: moderate yield + strong growth.

Nestlé: ~3.2%. Zurich Insurance: ~5.5%. Swiss Re: ~6%.

Like buying apples monthly: in January an apple costs CHF 1, you buy 10. In February CHF 2, you buy 5. In March CHF 0.50, you buy 20. Your average price: CHF 0.86.

DCA eliminates the biggest problem in investing: timing. By investing the same amount each month, you bypass this problem entirely.

With an arvy savings plan of CHF 500/month, you automatically buy more shares at lower prices during a crash.

Like an agreement between neighbors: 'Whoever parks at your place pays no fee here.' Without a DTA: double taxation.

DTAs determine the withholding tax on dividends. CH-USA: 15%. CH-DE: 15%. CH-UK: 15%.

Without the CH-USA DTA: 30% on US dividends. Thanks to DTA: 15%. On CHF 1,000 dividends: CHF 150 saved.

Like the lowest point of a valley between mountains: shows how deep things went in the meantime.

More relevant than volatility because it shows the maximum loss. Quality stocks have smaller drawdowns.

S&P 500 max drawdown 2008: -57%. COVID 2020: -34%. Quality stocks: typically smaller.

Like restaurant revenue before rent and taxes: shows how well the core business is doing.

Makes companies across countries/industries comparable. But ignores real costs like capex.

Ferrari EBITDA margin: ~38%. Microsoft: ~55%. Nestlé: ~20%.

Like state-paid wage continuation during mandatory deployments or family events. You don't work — the state still pays.

Maternity leave: 14 weeks, 80% of salary (max CHF 220/day). Paternity leave: 2 weeks, same conditions. Guaranteed nationwide since 2021.

Mother earning CHF 90,000/year: maternity allowance 80% × CHF 246/day (capped at CHF 220/day) × 98 days = CHF 21,560 for 14 weeks.

Like income per family member. The higher, the more profitable per share.

Rising EPS over years: a strong quality signal. arvy seeks companies with consistently growing EPS.

Microsoft EPS 2020: USD 5.76. 2024: USD 11.80. Doubled → price followed: USD 220 → 430.

When you buy an SMI ETF, you own a proportional share of Nestlé, Novartis, Roche and all other SMI companies — without buying each stock individually.

ETFs are the standard instrument for passive investing. They have low fees (often 0.1-0.5% TER), offer instant diversification and require no active management.

The iShares Core SPI ETF tracks the entire Swiss stock market. With a single transaction, you invest in over 200 Swiss companies. The TER is 0.10%.

Physical = faithful copy. Synthetic = high-resolution photo. arvy: direct physical stocks.

Physical replication is more transparent, no counterparty risk. arvy invests directly in physical stocks.

iShares Core S&P 500: physical (owns all 500). Synthetic ETF: uses a bank swap for the same return.

Like an early termination of your pension provision: you take out money that would normally be available at retirement — at a tax rate and at the cost of the later pension.

Tax-attractive: early withdrawals are taxed at a reduced rate (separately from other income). But the opportunity costs (lost compound interest) are often higher than the tax savings.

Early withdrawal CHF 80,000 from Pillar 3a for house purchase in Zurich: capital withdrawal tax ~5-7% = ~CHF 4,000-5,600. But: with 30 years remaining and 7% return, ~CHF 530,000 in future wealth is lost.

Like a house price including mortgage: house CHF 1M + CHF 400,000 mortgage = EV CHF 1.4M.

More honest than pure market cap because it accounts for debt.

Nestlé: market cap ~CHF 250B, net debt ~CHF 45B, EV ~CHF 295B.

Like a bouncer at the house purchase: before the bank lets you in, you must bring 20% equity — otherwise no mortgage.

This rule makes home buying the biggest financial challenge for many Swiss. For a CHF 1.5M house, you need CHF 300,000 — without it, home ownership is unreachable.

Family income CHF 150,000: affordability allows house up to ~CHF 1.2M. But equity requirement CHF 240,000 — at 0% savings rate: 16 years saving time. Reality: much longer.

Like a cutoff date on a voucher: buy before = bonus. On the ex-date the price drops by the dividend amount.

Barely relevant for long-term investors — you hold through many dividend payments. Critical for traders.

Nestlé ex-date 2025: April 17. Price April 16: CHF 98. April 17: ~CHF 95 (minus CHF 3 dividend).

Like a global US tax-bloodhound operation: no matter where in the world you have an account as a US person — the US finds out.

Has radically changed the banking market for US persons: many Swiss banks refuse US clients. Even Swiss with US Green Card are affected.

Swiss with US Green Card: classified as US person. Swiss bank must report all accounts to IRS. Some banks terminate such clients — compliance burden too high.

Like food inspection for restaurants: checks whether financial companies operate cleanly and treat customers fairly.

FINMA regulation is a quality mark. arvy holds a CISA license — the highest regulatory tier for asset managers.

arvy's CISA license: same category as major banks. Strict requirements on capital, organization and investor protection.

The 4% rule says: at 25x your annual expenses, you're financially free.

FIRE isn't a 'retire early' program — it's a 'work becomes optional' program. The FIRE number = annual expenses ÷ 4%. At CHF 60,000 annual expenses, you need CHF 1,500,000.

In Switzerland, with higher living costs, the FIRE number typically sits at CHF 1.5-2.5M. With a 50% savings rate and 7% return, you reach FIRE in ~17 years.

Like arriving late to the party: when everyone's already there celebrating, the party is usually over. FOMO often brings you in at exactly the worst moment.

Classic FOMO behavior: entering a trade only after a 5x rise. Statistically: such trades lose disproportionately because valuations have become extreme.

Bitcoin bought in December 2017 at USD 19,000 (FOMO): fell to USD 3,700 by December 2018 (-80%). Anyone entering 2020 at USD 9,000: significantly up today.

Like a state bonus for parents: per child, you receive a monthly contribution until adulthood or end of education.

Paid through the employer's family compensation fund. Varies strongly by canton: Valais CHF 305/child, Aargau CHF 200/child.

Family with 2 children (10 and 17) in Zurich: child allowance CHF 200 + education allowance CHF 250 = CHF 450/month = CHF 5,400/year taxable income.

Like the federal share of your taxes: only one part of your total tax burden. Canton and municipality come on top — usually significantly higher than the federal share.

Federal direct tax typically accounts for only 20-30% of total income tax. The main burden lies at cantonal/municipal level.

Gross salary CHF 150,000, single: ~CHF 5,500 federal direct tax + ~CHF 15,000-25,000 cantonal and municipal tax (depending on location).

Like the licensing framework for financial service providers: anyone wanting to manage wealth in Switzerland needs authorization — and continuous supervision.

Means safety for investors: asset managers are no longer self-regulated but directly supervised by FINMA. Before 2020 many EAMs operated in a grey zone — today all require authorization.

arvy AG holds a CISA license (FinIA equivalent for fund management companies), directly supervised by FINMA. Stricter requirements than a pure asset management mandate.

Like consumer protection for financial products: the provider must tell you clearly what you're buying, what it costs and whether it fits your profile.

Important consequence: a risk and suitability check must precede every investment advice. Violations can lead to damage claims. Protects against inappropriate products — e.g. structured products for pensioners.

arvy onboarding: FinSA-compliant risk profiling, cost transparency (Total Cost Ratio in prospectus), suitability check. At the house bank before 2020: often just ticking boxes without real assessment.

Like a fixed-price subscription: you always pay the same, regardless of how prices move. Predictable, but not always cheapest.

Most Swiss choose 10-year fixed mortgages for emotional reasons (planning security). Historically, SARON mortgages would have cost less in over 80% of cases.

10-year fixed, CHF 800,000, 1.8%: annual interest CHF 14,400. Over 10 years: CHF 144,000 in interest.

Like buying rates before you need them: you lock in today's price for a mortgage you'll only sign in a year.

The bank charges a forward premium (typically 0.1-0.3% per year lead time). Only worthwhile if rates really rise significantly — for a 2-year forward, historically rarely profitable.

Current 10-year fixed mortgage: 1.8%. Forward starting in 18 months: 1.8% + 0.4% = 2.2%. Only worthwhile if normal 10-year fixed rates in 18 months exceed 2.2%.

Like your disposable money at the end of the month: after rent, food, insurance — what's left?

Free Cash Flow is more honest than profit because it's harder to manipulate. arvy prefers companies with strong, growing FCF.

Microsoft generates ~USD 70 billion in Free Cash Flow per year. The company could distribute almost USD 200 million daily.

Like a health check of your pension fund: does it have enough money to pay all promised pensions?

Under-funding triggers mandatory restructuring (additional contributions, lower interest). At very low funding ratio: risk to your future pension.

Swiss pension funds end-2024 average: ~115% funding ratio — healthy. A fund at 90% must force active members and employer into back-payments.

Like a country's annual output: everything produced and sold, in one number. Higher GDP per capita = wealthier country.

GDP growth correlates long-term with stock markets — but loosely. Politics, rates, valuations are often bigger drivers. Switzerland has low growth (~1.5%/year) but strong stock returns.

Switzerland GDP 2024: ~CHF 850B nominal. GDP per capita: CHF 95,000 (4th globally after Monaco, Liechtenstein, Luxembourg). Growth 2024: ~1.4%.

Like inheritance tax, but during one's lifetime. Those who gift early can often structure it more cheaply than bequeathing.

Important for wealth succession: gradual gifts over years can reduce both tax and the donor's wealth tax burden simultaneously.

Gift of CHF 100,000 from parents to child in most cantons: CHF 0 tax. To godchild: up to CHF 30,000 tax.

Like the 'premium' when buying a company for its reputation: when you buy a successful bakery, you pay not just for ovens and flour — also for loyal customers and the known name.

When goodwill is 'impaired' — i.e. the acquired company is worth less than thought — it must be written down. Classic: Daimler-Chrysler merger → billions in writedowns.

Microsoft buys LinkedIn 2016 for USD 26B — goodwill ~USD 17B. Today worth significantly more. Yahoo buys Tumblr for USD 1.1B → 3 years later: USD 482M writedown.

Like investing in a young talent: you pay more today because you believe in the future potential.

Growth stocks can have enormous potential but are also more volatile. arvy prefers profitable growth — companies that already have high margins today.

NVIDIA rose from USD 20 (2019) to over USD 800 (2024) — a growth stock par excellence. But not every growth stock becomes NVIDIA.

Like the non-negotiable own share of your house purchase: 10% must come from real savings, not from borrowed or pre-withdrawn pension money.

Regulatory requirement set by FINMA since 2014 to prevent property bubble. Practically: those with 'only' 20% equity without hard equity won't get a mortgage.

House CHF 1M, 20% equity needed (CHF 200,000), min 10% hard (CHF 100,000 cash/securities). Max 10% from PK/3a (CHF 100,000).

Like a mandatory state insurance: you must have one, but can choose the provider. Benefits are the same everywhere — only the premium differs.

Premium differences between health insurers can be CHF 1,000-2,000 per year for the same coverage. An annual comparison (priminfo.ch) often saves more than any investment optimization.

Family of 4 in Zurich: premiums can vary between CHF 12,000 and CHF 16,000/year depending on insurer — for identical basic coverage.

Like a car insurance excess: up to your deductible, you pay, after that the insurer takes over. Higher deductible = lower premium.

Rule of thumb: highest deductible (CHF 2,500) is optimal for healthy people with savings. Lowest (CHF 300) for those with regular doctor visits.

Healthy adult: CHF 2,500 deductible saves ~CHF 1,200/year in premiums vs CHF 300. Break-even at medical costs of ~CHF 1,200/year.

Like insurance: pay premium (cost) for protection in a claim (crash). Costs return.

Hedging costs return. For long-term investors, diversification is the most natural and cheapest hedge.

CHF/USD hedge for US stocks: ~1-2% p.a. Over 30 years, the hedge can cost more than the risk itself.

Like sheep following each other: when everyone buys a certain investment, you buy too. When everyone sells, you sell too. With the herd, rarely to profit.

Buffett quote: 'Be fearful when others are greedy, and greedy when others are fearful.' Acting counter-cyclically is psychologically hard — but statistically profitable.

Dotcom bubble 1999: everyone buys tech (herding), crash 2000. COVID crash March 2020: everyone sells (herding), those who held: +70% within 12 months.

Like an advance on your pension for a house. Advantage: equity. Disadvantage: smaller pension later.

WEF withdrawals reduce your PK balance and future pension. Opportunity costs (lost compound interest) should be considered.

Mortgage CHF 800,000: 20% equity needed (CHF 160,000). Max 10% from PK (CHF 80,000).

Like insurance for everything you'd take if you moved. Imagine a fire destroyed everything: what would it cost to refurnish your apartment?

Mandatory in some cantons. Choose insured sum realistically — rule of thumb: CHF 30,000-50,000 per room for an average apartment.

4.5-room apartment with contents value CHF 80,000: premium ~CHF 250-400/year incl. theft away from home (e.g. laptop stolen at café).

Like an international postal code for your bank account: country + bank + account, all in one.

Without IBAN, no international transfers possible. Within EU/Switzerland, an IBAN transfer works like a domestic one — same effort, same cost.

Swiss IBAN example: CH93 0076 2011 6238 5295 7. CH = country, 76 = check digit, 0076 = bank (Migros Bank), rest = account number.

Like the opening of a new restaurant: great excitement, but long-term success is uncertain.

IPOs statistically underperform in the first 1-3 years. arvy waits until companies have proven themselves.

Ferrari IPO 2015: USD 52/share. Today: ~USD 450. But WeWork IPO 2021: collapsed.

Like an international ID card for securities: regardless of which exchange you buy Nestlé on, the ISIN is identical.

Important when comparing brokers and funds: some brokers only show tickers, leading to confusion. ISIN is unique.

Nestlé: CH0038863350. Apple: US0378331005. iShares Core MSCI World: IE00B4L5Y983. First 2 digits are the country (CH/US/IE).

Like income insurance against serious illness or accident: if you can no longer work, the IV steps in.

The IV covers only part of the need — additional private disability insurance is essential for many, especially the self-employed and main earners with families.

Fully disabled person with previous income CHF 80,000: IV pension ~CHF 28,000-34,000/year. Gap to previous income: about CHF 50,000/year.

Like taxes on rent you pay yourself: the state says you save the rent for your own home — so declare that 'saving' as income.

Imputed rental value has been politically debated for years and is expected to be abolished. In return, debt interest and maintenance deductions would also disappear — tax impact varies greatly per household.

House with market rent CHF 36,000/year → imputed rental value ~CHF 25,000 (typically ~70% of market rent). At 35% marginal tax: additional tax burden ~CHF 8,750/year.

Like a ranking of the best football players: the index shows who the top ones are. An index fund simply buys all players on the list.

Index funds (often as ETFs) are the cheapest way to invest broadly diversified. arvy combines the benefits of index investing with professional stock selection.

The three most important Swiss indices: SPI (~200 stocks), SMI (20 largest), SLI (30 most liquid). International: S&P 500, MSCI World.

Like a slow leak in a tire: you don't notice it immediately, but over time the tire goes flat. CHF 100 today buys only CHF 67 worth of goods in 20 years at 2% inflation.

Inflation is the main reason 'leaving money in a savings account' isn't a safe strategy. Investing — with ~7% historical return — is the only reliable inflation hedge.

Switzerland historically has lower inflation than the eurozone (~1.5% vs ~2.5%). But even at 1.5%, your savings account loses almost 40% of its purchasing power over 30 years.

Like an entrance fee to inherit: close relatives usually enter free, distant relatives pay an entrance fee.

Switzerland has internationally very low inheritance tax for the core family. Schwyz levies none at all. A significant locational advantage for wealthy families.

Father bequeaths CHF 2M to daughter in Zurich: CHF 0 tax. Same amount to unmarried partner: up to CHF 720,000 (36%) tax.

Like the insured value of your car: only this part is covered. Anything above isn't insured.

The higher the insured salary, the higher your contributions and future pension. Good employers have a lower coordination deduction than the BVG minimum — higher insured salary.

Salary CHF 100,000, coordination deduction CHF 26,460 = insured salary CHF 73,540. Contribution rate 15% = CHF 11,031 annually into the pension fund.

Like a bulk purchase instead of individual orders: pension funds use investment foundations to invest at institutional rather than retail rates.

Often invisible to pension fund members: you don't directly see that your pension fund invests through an investment foundation. But the cost structure and returns depend significantly on it.

Major Swiss investment foundations: Credit Suisse, UBS, AXA-Winterthur. Assets under management: hundreds of billions CHF.

Like a carpool: instead of everyone buying their own car, many share the costs and benefit together.

The difference vs. ETFs: active funds are run by managers (higher costs, goal: beat the market). ETFs passively track an index. The arvy equity fund combines active selection with an efficient cost structure.

The arvy Swiss Quality Equity Fund invests in 34 hand-picked quality companies. It's structured as a Swiss investment fund and FINMA-regulated.

Like the rulebook for the Swiss healthcare system: defines what basic insurance covers and what obligations providers and insured have.

KVG prohibits discrimination: every health insurer must accept everyone, regardless of health status or age. Applies only to basic insurance.

Switching insurers: cancel by November 30 for the next year. New insurer must accept you — even with chronic conditions.

Like a bid: 'I'll buy, but only below CHF X.' If the price is never reached, nothing happens.

Gives price control. Almost mandatory for illiquid stocks. Minimal importance for high-volume blue chips.

Nestlé price CHF 95.50. Limit order at CHF 93.00. If price drops to 93: automatic purchase.

Like the difference between an ATM and selling your house.

Liquidity determines how flexible you are. At arvy you can sell your wealth anytime — blue-chip stocks trade billions daily.

SMI stocks have daily trading volumes of hundreds of millions CHF.

Like a debt share of the house: 80% LTV means 80% of the house factually belongs to the bank, 20% to you.

High LTV = higher risk if property prices fall. If value drops below mortgage amount, the mortgage is 'underwater' — the bank can demand additional collateral.

House CHF 1,000,000, mortgage CHF 800,000 = 80% LTV. If house value falls to CHF 750,000, LTV is 107% — critical.

Like asymmetric perception: losing CHF 1,000 hurts about twice as much as gaining CHF 1,000 feels good.

Practical consequence: investors sell losing positions too late (hoping for recovery) and winners too early (to lock in gain). Exactly opposite of 'cut your losses, let your winners run'.

Investor with stock 30% down: holds, hopes for recovery. Investor with stock 30% up: sells, locks in gain. Statistically suboptimal: losers often fall further, winners often rise further.

Like going swimming: you can either slowly wade into cold water (DCA) or jump right in (lump sum).

If you have money to invest, investing immediately is statistically better than waiting. The market rises long-term.

At arvy you can combine lump sum + DCA: invest a one-time amount immediately, then top up monthly via standing order.

Like a flat entry fee instead of à la carte: instead of declaring every tax item individually, you pay a negotiated flat amount.

Typically used by wealthy retirees or athletes. Referendums have abolished it in some cantons (ZH, BL, BS, SH, AR), but it remains permitted at federal level.

A lump-sum-taxed foreigner in Vaud pays CHF 400,000 flat annually — regardless of actual worldwide income of e.g. CHF 5M.

Like a financial shield against your own mistakes: you break an expensive vase at a friend's place — your liability pays.

Not mandatory in Switzerland but practically essential: tenants are usually required to have one. Damages in rental apartments can quickly reach five figures.

Family: CHF 100-200 premium/year for CHF 5M coverage. Fire in rental with CHF 800,000 damage → fully covered.

Like a minimum return your pension fund must guarantee on your saved money. It can deliver more, but never less.

Applies only to the mandatory portion. Supra-mandatory assets can earn lower interest — at many funds even 0%.

PK assets CHF 300,000, of which CHF 200,000 mandatory: at least 1.25% × CHF 200,000 = CHF 2,500/year interest guaranteed.

Like a photo of the entire developed world. ~70% US weight.

Heavily US-weighted. arvy is more globally diversified with stronger focus on Europe and Switzerland.

Top 5: Apple, Microsoft, NVIDIA, Amazon, Meta. Switzerland: ~3%. ETF: iShares Core MSCI World (TER 0.20%).

Like tax deductions for keeping your house intact: what you spend on value preservation (roof, heating, painting) is deductible from income tax.

Important distinction: value-preserving = deductible (e.g. repair). Value-increasing = not deductible (e.g. extension). For mixed costs (e.g. new kitchen), often split 50/50.

Roof renovation CHF 60,000: fully deductible. At 35% marginal rate: CHF 21,000 tax savings. Effective net cost: CHF 39,000.

Like the estimated sale price of a house: not the price of a single brick, but of the entire building.

Market cap classifies companies: large cap (>10B), mid cap (2-10B), small cap (<2B). The arvy portfolio invests primarily in large and mega caps.

Nestlé: ~CHF 250B market cap. Apple: ~USD 3,000B — the world's most valuable.

Like at a cash register: you pay the displayed price, immediately.

Simplest way to trade. For liquid blue chips, the spread is so small that market orders are barely more expensive.

Nestlé spread: CHF 0.02. Market order costs CHF 0.02 more than limit — negligible.

Like the realistic sale price: what would you get for the house on the market today? Not the purchase price from 20 years ago.

Banks calculate LTV on market value, not purchase price. With sharply rising property prices, lower LTVs can enable additional mortgages.

House bought 2005 for CHF 700,000. Current market value: CHF 1.4M. Mortgage still CHF 500,000 = LTV 36% (vs 71% at purchase). Bank can extend additional mortgage.

Like state-paid leave after the birth of a child. You don't have to return to work — but receive 80% of your salary.

Requirement: 5 months of AHV-subject employment during pregnancy. 14 weeks is internationally relatively short — Sweden grants 480 days, both parents combined.

Mother with monthly salary CHF 8,000: 80% × CHF 8,000 × 14 weeks / 4.33 weeks-month = CHF 25,860 for the 14-week leave.

Moats can be: strong brands (Coca-Cola), network effects (Visa), switching costs (Microsoft), cost advantages (Costco).

Companies with wide moats can sustain high returns on capital long-term. The arvy portfolio invests only in companies with identifiable moats.

Nestlé's moat: thousands of established global brands + distribution network no newcomer can replicate. Visa's moat: network of 4 billion cards + 100 million acceptance points.

Like a trust advance from the bank: it gives you money for a house, and the house serves as collateral. If you don't pay, the bank takes the house.

Switzerland has internationally extreme low amortization rates — many owners never fully pay off their mortgage. The reason: mortgage interest is tax-deductible, while imputed rental value is taxable.

House purchase CHF 1,000,000: 20% equity (CHF 200,000), 80% mortgage (CHF 800,000). At least 10% (CHF 100,000) must be from own funds — max 10% from PK/3a.

Like signing a contract at the end of a fixed mortgage: you don't have to stay with your bank — switching can bring lower rates.

Negotiation tip: get offers from multiple banks 12-18 months before expiry. Difference between banks can be 0.3-0.5% — on CHF 1M mortgage over 10 years: CHF 30,000-50,000.

Renewing CHF 1M mortgage, 10 years. Existing bank: 2.0%. Competitor offer: 1.7%. Over 10 years: CHF 30,000 saved through switching.

Like inverted interest logic: you pay the bank to hold your money. Economic policy against deflation and CHF strength.

Anyone wanting to avoid negative rates: invested in stocks, real estate, long-dated bonds. Best historical strategy: Swiss quality stock portfolio.

2015-2022: SNB rate -0.75%. Wealthy individuals with CHF 1M cash at UBS paid up to CHF 7,500/year in negative rates. Same CHF 1M in SMI: ~CHF 80,000/year gain.

Like a neutral referee for important contracts: the notary ensures both parties know what they're signing.

Notary costs vary widely by canton: for property purchases 0.05-1% of purchase price. Lower in Zurich (~CHF 1,500-3,000), higher in Geneva (~CHF 5,000-15,000).

House purchase CHF 1M in Zurich: notary costs ~CHF 3,000. Geneva: ~CHF 8,000. Vaud: ~CHF 5,000. Plus property transfer tax.

Like partial wage continuation for children whose parents have died. The state pays a portion until they can support themselves.

Important for families: AHV orphan's pension alone rarely suffices for upbringing. Additional risk life insurance for the main earner is often crucial.

Father (AHV calculation base CHF 2,400/month) dies. Daughter (12) receives 40% = CHF 960/month until 18. With education until 25: ~CHF 150,000 total.

Like the 'Lake Wobegon illusion': all children are above average. Mathematically impossible, psychologically widespread.

Consequence: active traders trade too often. Studies show: those with 200%+ trading activity per year underperform the market by 6.5% — due to transaction costs and bad decisions.

Classic experiment: men trade 45% more often than women — underperforming by 1% per year on average. Overconfidence affects women less.

Like price per square meter in real estate: it tells you whether an apartment is expensive or cheap in comparison.

The P/E is the most widely used valuation metric. A P/E of 30 for Microsoft (strong growth) is different from a P/E of 30 for a stagnating bank.

The historical average P/E of the S&P 500 is ~16-17. The SMI typically trades at ~18-20. Quality companies with strong growth often trade at P/Es of 25-40.

Like price per horsepower: an expensive car with high HP (growth) can be cheaper than a cheap one with low HP.

More useful than P/E alone because it accounts for growth. P/E 30 at 30% growth (PEG 1) < P/E 15 at 5% growth (PEG 3).

Microsoft: P/E ~35, growth ~15% → PEG ~2.3. Nestlé: P/E ~20, growth ~5% → PEG ~4.0.

Like a 50/50 split of marital savings: what both partners paid into their PKs during marriage is summed and split equally.

Fair compensation for the partner who paid less due to childcare. But: the one who paid more loses a significant part of their retirement provision.

Husband paid CHF 300,000 into PK during 20 years of marriage, wife CHF 80,000 (part-time due to children). On divorce: each receives (CHF 300k+CHF 80k)/2 = CHF 190,000.

Like a mini-vacation for fathers after birth: 10 working days, freely chosen within the first 6 months. Paid at 80%.

Internationally still short: Sweden, Norway and Spain offer 12-16 weeks or more. Parental leave initiative under political discussion in Switzerland.

Father with monthly salary CHF 10,000: 80% × CHF 10,000 × 2 weeks / 4.33 weeks-month = CHF 3,700 for the two-week leave.

Like a mandatory savings plan from your employer: each month a percentage of your salary is automatically paid in — and your employer adds at least the same amount.

The pension fund is the largest asset for most Swiss. At retirement you face an irreversible decision: pension or capital?

With PK assets of CHF 500,000 and a conversion rate of 5.4%, you receive an annual pension of CHF 27,000.

Like a back-payment for missed pension fund contributions: those who paid less earlier (e.g. time abroad, studies) can close this gap against tax savings.

Highly attractive for top earners with high marginal tax rates: at 35% marginal rate and CHF 50,000 buy-in, you save CHF 17,500 in taxes immediately. Withdrawal later at reduced rate.

Buy-in gap CHF 80,000 per PK statement, staggered over 4 years at CHF 20,000. At 35% marginal rate: CHF 28,000 total tax savings.

Like a wealth statement of your future pension: shows in black and white what you've already saved and what you can expect at retirement.

Most Swiss never carefully review their PK statement. Yet it contains critical information: conversion rate, available buy-in gap (tax-deductible), home-equity withdrawal, splitting status.

Typical PK statement person aged 45: retirement assets CHF 320,000, projected pension CHF 32,400/year, buy-in gap CHF 85,000 (tax-deductible over several years).

Like a leaky roof: you only notice when it rains (retirement). The pension gap builds gradually.

Women are particularly affected: part-time work, childcare breaks and the gender pension gap lead to an average pension gap of 37% vs men. Investing early can significantly close the gap.

With a final gross salary of CHF 120,000 and typical AHV+PK benefits, there's often a shortfall of CHF 2,000-3,000 per month. Over 20 years of retirement: CHF 480,000-720,000.

Like a private pension solution within Pillar 2: you decide how your money is invested — e.g. 80% in stocks. Higher return potential, but also loss risk.

Interesting for top earners: instead of a meager 1.5% return through the pension fund, a 1e plan can deliver 5-8% long-term. Risk: losses in the year before retirement.

Salary CHF 200,000: salary part over CHF 132,300 (CHF 67,700) can be invested via 1e plan. At 6% return over 25 years: ~CHF 370,000 additional wealth vs. PK interest.

Like a piggy bank with a tax bonus: you pay in an amount each year that you can deduct from your taxes.

The 2026 maximum for employees with a pension fund is CHF 7,258. At a marginal tax rate of 35%, that saves you CHF 2,540 in taxes — every year.

In Zurich, an employee earning CHF 100,000 saves around CHF 2,500 in taxes per year through maximum 3a contributions. With arvy, 3a money can be invested in quality stocks.

Like a normal savings account vs. a restricted one: Pillar 3b has no rules.

For anyone already maxing out 3a. Investing through arvy is effectively Pillar 3b — free, invested, accessible anytime.

CHF 500/month into arvy = Pillar 3b: flexible, invested, accessible anytime. Capital gains tax-free.

Like the economy's thermostat: high = cools down. Low = heats up.

Falling rates = positive for stocks. The SNB cut in 2025 — tailwind for Swiss investors.

SNB: 0.25%. Fed: 3.75-4.00%. ECB: 2.50%.

Like a restaurant menu: a good menu combines starter, main and dessert. A good portfolio combines different asset classes.

The right portfolio composition matters more than picking individual stocks. arvy offers three risk profiles: Growth, Balanced and Defensive.

An arvy Growth portfolio invests primarily in quality stocks globally. A Balanced portfolio mixes stocks with bonds.

Like the market value vs. material value of a house: the house is worth more than its bricks.

Quality investors accept high P/Bs because intangible assets (brands, networks) exceed book value.

Nestlé P/B: ~5x. UBS: ~1.2x. Apple: ~40x (almost all intangible).

Like a Michelin-starred restaurant: it can raise prices and the tables are still full.

Companies with pricing power are the best inflation hedge. In the arvy portfolio, all 34 companies have strong pricing power.

Ferrari raises prices 3-5% every year — and still has a waiting list of years.

Like profit per coffee sold. The higher the margin, the more profitable.

High margins = pricing power + competitive advantages. arvy focuses on above-average margins.

Ferrari: 23%. Visa: 52%. Microsoft: 36%. Average SME: 3-5%.

Like an additional small rent to the state for owning a home — but only in some cantons. Typically 0.05-0.3% of market value.

Unlike wealth tax (on net wealth): property tax is calculated on the full market value, WITHOUT deducting mortgages. Higher burden for heavily mortgaged homes.

House at market value CHF 1M in Bern (0.2%): CHF 2,000/year property tax. Zurich: CHF 0 (no property tax). Valais: ~CHF 1,500.

Like a shopping fee for buying a house: some cantons charge a significant surcharge, others nothing at all.

On a CHF 1M house purchase, this can mean a difference of up to CHF 33,000 between cantons — an often-overlooked factor in location choice.

House purchase CHF 1.5M in Zurich: CHF 0 transfer tax. In Geneva (3%): CHF 45,000.

Like buying real estate: you'd rather buy an apartment in a prime location with a reliable tenant than a cheap property in a bad area.

Quality companies survive crises better, grow more stably and recover faster. The arvy portfolio follows this principle: 34 companies with 'Good Story & Good Chart'.

The arvy portfolio contains companies like Nestlé, Ferrari, Microsoft, Visa — all with high returns on invested capital.

Like a money injection for the economy: more money in the system seeks return → flows into stocks.

QE was massive after 2008 and 2020. Drives stocks up. When QE ends (tightening), stocks often fall.

Fed bought USD 4T in bonds 2020-2022. S&P 500: 2,200 → 4,800 (+118%) in <2 years.

Like the return on your invested capital in a side job.

A high ROE signals that a company efficiently uses shareholders' capital. Quality companies typically have ROEs of 15-30%.

Microsoft: ROE ~35%. Nestlé: ROE ~30%. Visa: ROE ~45%. Comparison: average Swiss bank fund: ROE ~8-12%.

Like the yield of a restaurant: not just 'how much profit do you make?' but 'how much profit per franc invested?'

ROIC is for many investors the single most important metric. Companies with consistently high ROIC (>15%) have a lasting competitive advantage (moat). arvy analyzes ROIC for every investment decision.

Ferrari: ROIC ~25%. Microsoft: ROIC ~30%. Nestlé: ROIC ~15%. Average SMI company: ~10-12%.

Like a gardener trimming a hedge: the fast-growing branches are cut back.

Without rebalancing, your portfolio gets riskier over time. arvy handles rebalancing automatically — you don't need to do anything.

If your target portfolio is 70% stocks / 30% bonds and stocks rise to 80%, rebalancing sells 10% stocks and buys 10% bonds.

Like a distorted mirror on the future: what just happened feels like it will continue forever — boom or crash.

After a 30% rise in a year: investors expect another 30%. After a 30% crash: investors expect more crash. Historically both wrong — mean reversion is the rule.

After March 2020 crash: investors pulled massive money from stocks — missed the +70% recovery. After 2021 boom: massive entry, missed the -20% drop in 2022.

Like a harsh winter: painful but temporary. Spring follows every winter.

Since 1950: 11 US recessions, avg duration 10 months. Recovery followed each one. Recessions = buying opportunities.

Last Swiss recession: 2020 (COVID, GDP -2.5%). 2021: already back to pre-crisis levels.

Like a hidden kickback to your advisor: you pay fund fees — and part flows to the advisor who 'recommended' the fund. His incentive: sell what pays best, not what's best for you.

Federal Court ruling 2012: retrocessions belong to the client, not the asset manager (unless the client explicitly waives). Asset managers must disclose them — many remain silent.

Client with CHF 1M mandate at bank, 1.5% fund fee. Of that, often ~50% (CHF 7,500/year) flows back as retrocession. Over 20 years: CHF 150,000 silent enrichment.

Like the yield of a garden: you plant seeds (capital), and after a year you have fruit (return). 7% return means: CHF 1,000 becomes CHF 1,070 after one year.

The historical average return of the stock market is ~7-10% per year. Important: returns fluctuate — the average emerges over decades.

The SPI delivered an average annual return of ~8.5% from 1990 to 2024, including dividends.

Like the insurance portion of your PK contributions: part flows into your account, part is insurance premium for family protection.

Young people with high salaries pay relatively high risk premiums. With advancing age (>50) and no small children, the relative value of this coverage decreases.

Insured salary CHF 100,000: ~CHF 2,000/year risk premium for death/disability. In return: widow's pension typically CHF 30,000+/year guaranteed.

Like your pain tolerance: some people jog in the rain, others don't.

Your risk profile depends on three factors: investment horizon, financial situation and emotional tolerance. arvy determines your profile at account opening.

arvy offers three risk profiles: Growth (long-term, higher fluctuations), Balanced (medium-term, balanced) and Defensive (short-term, more stable).

Like an autopilot in an airplane: it flies the route it was programmed for. Efficient and cheap.

Robo-advisors typically invest passively in ETFs. arvy differs fundamentally: instead of passive ETF replication, you invest in 34 hand-picked quality stocks — with founders who have their own money in the same portfolio.

Selma Finance: ~0.68% management. arvy: 0.69-0.89% management + 0.15-0.22% product costs. Similar total costs — but arvy offers professional stock selection.

Like the premier league of the US economy. ~10% return per year over 100 years.

The reference for performance comparisons. Many arvy portfolio companies are in the S&P 500.

CHF 10,000 in the S&P 500 in 2000: ~CHF 55,000 today. Despite dotcom, financial crisis, COVID.

Like the official daily weather report for Swiss rates. With a SARON mortgage, your rate fluctuates with this value — cheap when rates are low, more expensive when they rise.

SARON mortgages are historically cheaper on average than fixed-rate mortgages, but carry interest rate risk. In the low-rate years 2015-2022, SARON holders saved tens of thousands of francs.

3M SARON currently: ~0.3%. Plus bank margin 0.7-1.0% = effective SARON mortgage rate ~1.0-1.3%. 10-year fixed: ~1.6-1.9%.

Switzerland's top 20: Nestlé, Roche, Novartis dominate with ~50% weight.

Heavily concentrated. arvy is more broadly diversified and not limited to Switzerland.

SMI long-term: ~7-8% p.a. incl. dividends. Nestlé alone: ~20% of the index.

Like Switzerland's financial pulse-setter: controls inflation, exchange rate and economic conditions via interest rates.

Specialty: SNB holds massive foreign reserves (>CHF 800B) to control the franc rate. Balance sheet: over 100% of Swiss GDP — globally unique.

SNB decision January 2015 (abandoning the euro floor): CHF rose 30% within minutes — biggest daily move of a G10 currency since Bretton Woods. Swiss investors remember.

Like an official annual overview of your work: gross salary, AHV contributions, pension fund contributions, expenses, meal allowances — all in there.

Company cars, meals and other fringe benefits are increasingly strictly reported. Important: these amounts flow into your taxable income.

Typical Swiss employee Lohnausweis: gross salary CHF 100,000, AHV/IV/EO CHF 5,650, PK CHF 7,200, ALV CHF 1,100 → net salary ~CHF 86,050 before tax.

Like the storage account for your emergency reserve: safe, accessible anytime, but practically no return.

Recommended savings account size: 3-6 months of expenses as emergency reserve. Anything above: invest. At 2% inflation and 1% interest: real -1% per year purchasing power loss.

CHF 100,000 in savings account at 1% interest over 20 years: nominal CHF 122,000. At 2% inflation: real purchasing power CHF 82,000 — loss of CHF 18,000 in today's money.

Like automatic saving for retirement. The older you get, the higher the mandatory savings rate. The employer pays at least half.

BVG rates: ages 25-34 7%, 35-44 10%, 45-54 15%, 55-65 18%. Many top employers offer 'supra-mandatory' plans with higher rates.

40-year-old with insured salary CHF 80,000: BVG minimum 10% = CHF 8,000/year savings contribution. Employer must pay at least CHF 4,000.

Like a gym subscription: you sign up once, and from then on you train regularly. The discipline comes from the system, not from you.

A savings plan uses Dollar-Cost Averaging. At arvy you can set up a savings plan from CHF 1/month.

On the 25th of each month — right after payday — a fixed amount flows via standing order into your arvy account. That's how you pay your future self first.

Like a safe in a hotel: the contents belong to you, no matter what happens to the hotel.

The most important investor protection for funds. At arvy: assets held as segregated assets at the custodian bank.

If arvy hypothetically closed: your fund shares remain at the custodian and belong to you.

Like dividing a pizza into 8 slices instead of 10: bigger pieces. In Switzerland, buybacks are tax-free (no withholding tax).

Often more attractive than dividends because tax-free. Apple buys back ~USD 90B/year.

Apple: over USD 600B repurchased since 2012. Shares outstanding -35%.

Like a mountaineer rating: not just how high, but how high relative to the risk.

Allows comparing investments with different risk levels. 10% return with Sharpe 0.8 > 12% with Sharpe 0.5.

S&P 500 long-term: ~0.4. Good active fund: 0.6-0.8. Buffett: ~0.76.

Like borrowing a book, selling it, and hoping to buy it back cheaper later. Risky.

For professional traders and hedge funds — not for private investors. arvy only invests 'long'.

GameStop 2021: short squeeze → billions in losses for short sellers. Shows the unlimited risk.

Like a financial safety net for long illness: while a cold isn't a problem, a 6-month illness without insurance can break income.

Not mandatory (except in some sectors). Those without coverage have no income after the legal continued-wage period (3 weeks - 6 months depending on years of service).

Employee in 5th year, salary CHF 100,000, sick for 12 months: legal wage continuation ~3 months. With Krankentaggeld: 80% × CHF 100,000 = CHF 80,000 for full year.

Like a chef who eats their own food: you trust a restaurant more if the chef eats there.

Skin in the Game creates the strongest trust. The arvy founders invest over CHF 100,000 of their own money in the same portfolio.

The arvy founders Thierry, Florian and Patrick invest their private wealth through arvy — in the same fund, on the same terms. This is unique among Swiss asset managers.

Like an automatic tip on the bill: deducted before you see your money.

US dividends: 15% withholding (thanks to DTA), creditable against Swiss income tax. Without DTA it would be 30%.

Microsoft dividend USD 3.00: USD 0.45 (15%) withheld in the US. You receive USD 2.55.

Like automatic tax deduction: you see the gross payslip, but your net salary is already after tax. No separate tax return needed.

Important for expats: above gross salary CHF 120,000, you must file a subsequent ordinary tax return — and can claim deductions not included in the source tax tariff.

German expat with CHF 100,000 annual salary in Zurich: ~12-15% source tax = ~CHF 1,000-1,250 monthly deducted directly from salary.

Like currency exchange at the airport: you buy euros more expensively than you can sell them.

Tight spread = low trading costs. Blue chips: a few cents. Small caps: 1-5%. arvy invests in highly liquid stocks.

Nestlé spread: ~CHF 0.02 (0.02%). A small cap: ~CHF 0.50 (1-2%). Over a year that adds up.

Like a double-edged sword for central bankers: lower rates against stagnation → inflation rises. Raise rates against inflation → economy collapses further.

Classic stagflation decade: the 1970s. S&P 500 real (inflation-adjusted): -50% from 1968 to 1982. Only winners: gold and oil.

USA 1970s: peak inflation 14% (1980), unemployment 9%, GDP growth near 0. Stocks nominally flat, real -50%. Only the Volcker shock 1981 (rates to 20%) broke inflation.

Like a small bridge toll on every crossing.

Stamp duty is an often-overlooked cost. At arvy, stamp duty is included in the all-in fees.

Buying CHF 10,000 in Swiss stocks: stamp duty = CHF 7.50. Foreign stocks: CHF 15.

Like a gym subscription: you sign up once, and from then on it's deducted monthly.

The standing order eliminates the biggest hurdle in investing: yourself. Without automation, you'll always find a reason not to invest. With a standing order, you invest no matter what — and that's demonstrably better.

Set up a standing order on the 25th of each month (right after payday) from your bank account to your arvy account. From CHF 1/month.

Imagine a baker wants to expand and needs money. He sells 100 shares of his bakery for CHF 100 each. You buy one — now you own 1% of the bakery. If the bakery grows and earns more, your share becomes more valuable.

Stocks have delivered an average return of ~7-10% per year over the last 100 years — more than any other asset class. They're the foundation of long-term wealth building. At arvy, you invest in 34 hand-picked quality stocks.

When you buy a Nestlé share for CHF 95, you become co-owner of the world's largest food company. You receive an annual dividend (~CHF 3) and benefit from price appreciation. Nestlé has increased its dividend for over 25 consecutive years.

Like cutting pizza into 8 instead of 4 slices: more pieces, same amount.

Makes expensive stocks more accessible. Irrelevant for arvy investors since arvy can buy fractional shares.

NVIDIA 10:1 split 2024: price USD 1,200 → USD 120. Anyone holding 1 share now had 10. Total value: identical.

Like an emergency exit: there if needed. But on short-term dips it can trigger at the wrong moment.

Often counterproductive for long-term quality investors. arvy holds rather than uses stop-losses.

COVID crash March 2020: stop-losses triggered en masse. Those who held: +70% in 12 months.

Like the pure material value of a house: what would the demolition proceeds be? A floor — most houses are worth more as a whole.

Value investors use substance value as 'margin of safety': when the stock trades below substance value, you have a buffer against most risks.

In the 2008 financial crisis, some banks traded below substance value: stock price implied the balance sheet was worthless. Those who bought: 200-500% gain over the following 5 years.

Like continuing to eat at a bad restaurant because you've already ordered and paid. The money is gone — the meal doesn't get better if you finish it.

Rational investor: 'Would I buy this stock today at this price?' If no: sell. What you paid before is irrelevant for future decisions.

Stock bought at CHF 100, today CHF 30. Sunk cost fallacy: 'I won't sell at CHF 70 loss.' Rational question: 'Would I buy today at CHF 30?' If no: sell.

Like a safety net under the safety net: if AHV + pension fund + own assets aren't enough for the subsistence minimum, EL steps in.

EL entitlement is often underestimated: many seniors are eligible but don't know it or are ashamed. Even homeowners with imputed rental value can qualify.

AHV pension CHF 1,800 + PK CHF 800 = CHF 2,600/month. Recognized need for single person ~CHF 3,200/month → EL covers the gap of ~CHF 600/month.

Like a business-class upgrade: basic insurance gets you from A to B, supplementary insurance makes the journey more comfortable.

Unlike basic insurance: providers can reject or charge higher premiums. Anyone wanting supplementary insurance later must answer health questions.

Semi-private hospital coverage: ~CHF 100-200/month. Allows 2-bed room and free choice of doctor in hospital. Worthwhile for many in complex surgeries.

Like a life insurance within the social system: if a parent dies, income for the family continues at least partially.

Survivors' pensions from AHV are low (typically ~80% of the retirement pension). Often insufficient for families with children — additional risk insurance is recommended.

Main earner (CHF 100,000 salary) dies. Family with two children receives: AHV widow's pension ~CHF 1,900/month + 2 orphan's pensions ~CHF 950 + PK benefits. Gap still often several thousand francs.

Like reading 'success secrets of millionaires' without knowing how many failed with the same strategy. You only see the winners.

Important for fund performance: bad funds are closed or merged, disappear from statistics. 'Average equity fund returns 8%' ignores the hundreds that failed.

Studies show: 10-year fund performance rises 1-2% when corrected for survivorship bias. Meaning: actual average return is 1-2% lower than published.

Like a 13th monthly salary — but from AHV instead of an employer. Once a year on top of the 12 regular monthly pensions.

The financing is controversial (VAT and salary contributions increased). For many pensioners, however, an important top-up against rising living costs.

AHV pensioner with max pension CHF 2,450/month receives an additional 13th pension of CHF 2,450 in 2026 = ~8.3% more annually.

Like the running costs of a car: you don't feel them while driving, but they reduce your budget.

TER is the most important cost factor for funds. Swiss bank funds often have a TER of 1.0-2.0%. ETFs: 0.1-0.5%. At arvy: product costs of 0.15-0.22% — well below the industry average.

A fund with 1.5% TER costs you ~CHF 52,000 in fees on CHF 100,000 over 20 years. At 0.2% TER: ~CHF 7,600. Difference: CHF 44,400.

Like a Swiss cash substitute in your smartphone: instead of coins or cards, you pull out your phone. Works between private persons and in shops.

Market penetration in Switzerland: ~5M users. Competition: Apple Pay, Samsung Pay — TWINT holds dominance through bank integration and P2P functionality.

Splitting a CHF 80 restaurant bill between 4 friends: 1 pays by card, the other 3 each send CHF 20 back via TWINT. Within seconds, free.

Like a staircase model: each additional franc earned falls into a higher tax bracket. The first franc is cheap, the 200,000th expensive.

Progression makes Pillar 3a contributions particularly attractive: you save at the marginal tax rate (top of the staircase). Splitting for married couples also reduces progression.

Salary increase from CHF 100,000 to CHF 110,000: the additional gross salary is taxed at ~35-40% (marginal rate) instead of the ~20% average rate.

Like a salary certificate for your investments: lists what you received in dividends, interest and capital gains — and what withholding taxes accrued.

The Steuerausweis significantly simplifies the tax return. At arvy you receive a detailed Steuerausweis that simplifies reclaiming withholding and source taxes.

Typical arvy Steuerausweis 2026: list of all 34 portfolio positions, total dividends CHF 1,200, withholding tax CHF 280, US withholding tax CHF 90 (reclaimable via DA-1).

Like the pension fund's assumption about the future: 'this is how much return we expect.' If too optimistic, money will be missing later.

Falling for years due to low rates: 2010 ~4%, 2024 ~1.5-2.0%. Lower rate forces pension funds into higher contributions or lower conversion rates.

Fund with technical rate 2% vs 3%: pension liabilities rise ~15-20%, funding ratio falls accordingly. Required contributions increase.

Like the pure assessment of investment skill: if you deposit large amounts at bad times, that has nothing to do with fund quality. TWR ignores this.

Important: TWR shows fund performance, not your personal return (that's money-weighted return). Both can diverge significantly.

Fund TWR: +10%/year. You invest CHF 100k at start of year, another CHF 100k after -20% crash. Personal MWR: +18% (better timing). TWR for others: unchanged +10%.

Like the honest answer to 'how much did my money grow?': not just the price counts, but also all distributed dividends.

Pure price return ignores ~30-40% of historical stock returns. For comparisons, use total return indices like SPI Total Return, not pure price indices like SMI.

Nestlé from 2000 to 2024: price from CHF 50 to CHF 95 (+90%). With reinvested dividends: ~+320%. Difference: 230% from dividend compounding alone.

Like a copy's deviation from the original: a good ETF tracks its index almost perfectly — small differences from costs and cash holdings.

Important ETF selection criterion: TER + tracking error = true total cost. An ETF with 0.05% TER and 0.3% tracking error is effectively pricier than one with 0.15% TER and 0.05% tracking error.

iShares Core S&P 500 ETF: TER 0.07%, tracking error 0.04%. Total effective cost: 0.11%. Vanguard S&P 500 ETF: TER 0.07%, tracking error 0.02%. Total: 0.09%.

Like insurance against job loss: those who work pay 1.1% of salary. When let go, it kicks in.

Important details: 2-year waiting period for self-caused unemployment. No entitlement for those past AHV age or self-employed.

Person earning CHF 100,000, gets laid off: ALV daily allowance 80% of daily wage CHF 384 (CHF 100,000/260) = CHF 307/day. Monthly ~CHF 6,700 for up to 18 months.

Like a fever thermometer for the stock market: normal VIX is 15-20. Above 30 signals fear, above 40 panic. VIX spikes have historically been the best times to buy.

A high VIX means: the majority is afraid and has already sold. Bad news is priced in. Historically, 'buy when VIX rises above 30' has been one of the most reliable strategies for long-term investors.

VIX March 2020 (COVID): 82. VIX October 2008 (financial crisis): 80. VIX normal: 15-20. Those who invested at VIX >40 almost always achieved double-digit returns over the following 12 months.

Like a simplified ISIN for Swiss banks: shorter, but only common in Switzerland. Usually required for stock orders at Swiss banks.

Beware confusion: the last 6 digits of ISIN don't necessarily match the Valor. For US stocks, Valor and CUSIP differ.

Nestlé: Valor 3886335, ISIN CH0038863350. Microsoft: Valor 951692, ISIN US5949181045.

Like a pension fund's nest egg for difficult market years: with full reserves, the fund can absorb losses without asking you for additional contributions.

With full value fluctuation reserves, the fund can invest more in stocks (higher long-term return). Low reserves = more conservative investment strategy.

Fund with CHF 5B assets and 15% reserves (CHF 750M): can cover three-quarters of a -20% market crash (CHF 1B) from reserves.

Like a bargain hunter at a flea market: you look for things worth more than their price tag says.

Buffett said: 'Buy wonderful companies at a fair price, rather than fair companies at a wonderful price.' arvy combines value and quality approaches.

Warren Buffett bought Coca-Cola in 1988 for ~USD 3 (split-adjusted). Today: ~USD 60. Plus 35 years of dividends. His yield on cost: over 50%.

Like a mortgage subscription with flexible price: the bank decides what you pay but can change it anytime.

Historically more expensive than SARON mortgages because banks tend to let the spread flow into their margin. SARON is more transparent.

Variable mortgage currently: ~2.0-2.5%. SARON mortgage (3M SARON + 0.7% margin): ~1.0-1.3%. Difference: CHF 5,600/year on CHF 800,000 mortgage.

Like a temporary storage for your retirement money: it holds your pension assets until you can transfer them to a new fund or withdraw at retirement.

Most money in vested benefits accounts sits in savings accounts at 0-0.5% interest — losing value to inflation. But it can also be invested.

An estimated CHF 60 billion sits in vested benefits accounts in Switzerland. At 7% return over 20 years, that would be CHF 232 billion — CHF 172 billion more.

Like waves on the sea: some days it's mirror-smooth, others stormy. The direction (long-term upward) doesn't change with waves — but the ride feels different.

Volatility isn't the same as risk. A long-term investor even benefits from volatility because they can buy more cheaply in downturns (DCA effect).

In the COVID crash of March 2020, the VIX rose to 82 — the highest since 2008. Anyone who invested then saw a return of over 70% in the next 12 months.

Like rent to the state for your wealth: each year the canton retains a small percentage of your total wealth.

Wealth tax varies dramatically by canton: Zug and Schwyz under 0.3%, Vaud and Geneva over 1%. For large wealth, the cantonal location can mean a difference of several CHF 100,000/year.

Wealth of CHF 2M in Zug (~0.25%): CHF 5,000 wealth tax. Same wealth in Geneva (~1.0%): CHF 20,000. Difference: CHF 15,000/year.

Like a survivor's pension from the state: when a partner dies, the other receives a portion of their AHV pension — for life.

Reform plans aim to equalize men and women: men should get extended entitlements, women's claims partially reduced (only with children).

Deceased husband had AHV pension CHF 2,400/month. Widow receives 80% = CHF 1,920/month, lifelong (under current rules).

Like a deposit: the state holds back 35% of your dividend as 'security'. When you declare the dividend, you get it back.

The Verrechnungssteuer is a Swiss specialty. For Swiss investors it's cost-neutral — as long as you fill out your tax return correctly.

On a Nestlé dividend of CHF 3.00/share: CHF 1.05 (35%) withheld. You receive CHF 1.95 net. The CHF 1.05 is reclaimed via the tax return.

Like an economic ECG: a normal curve shows health, an inverted curve often signals coming recession.

The inverted US yield curve has correctly predicted every recession since 1955 within 6-24 months. 2022-2024: massively inverted — no recession (yet). Leading indicator value questioned.

US yield curve July 2023: 3M Treasury 5.5%, 10Y Treasury 4.0% — 1.5 points inverted. Historically the strongest recession signal. Currently: economy still stable.