How to Start Investing in Switzerland: The Action Plan

arvy's Teaser: Three questions stop most people from investing: How much? When? And how? The answers are simpler than you think — if you stop overcomplicating them. This article gives you a concrete Swiss action plan: with CHF numbers, rules of thumb that actually work, and a clear sequence. No jargon. No theory. Just: what you can do tomorrow morning.

Question 1: How Much Should I Invest?

The 50-30-20 Rule — Translated for Switzerland

The world's most famous budget rule, adapted to Swiss reality:

Invest 20% of your net income. That's the rule of thumb. On the Swiss median salary (net ~CHF 5,300), that's around CHF 1,000–1,100/month. If you can do more: even better. If you can only manage CHF 100 or 300: that's still a start. The worst amount is: CHF 0.

What if I earn more or less?

Question 2: When Should I Start?

Short answer: Now.

Long answer: There's exactly one prerequisite before investing — and after that, there's no reason to wait.

The prerequisite: Emergency fund

Before investing a single franc, you need an emergency fund: 3–6 months of fixed expenses in a savings account. Typically CHF 10,000–20,000. This ensures you won't have to sell investments during a job loss, illness, or unexpected bill.

Got the emergency fund? Then there's no better time than today.

"But the market is at an all-time high!"

It almost always is. The market spends more time at all-time highs than at any other level — because the economy and earnings grow long-term. JP Morgan showed: even someone who invested on the worst day every year achieved 9.1% p.a. Those who stayed in cash out of fear: 2.3%. (→ Investing Despite Crash Fears)

Question 3: How Should I Invest?

The sequence: What comes first?

Savings plan vs. lump sum: What if I have a larger amount?

You have CHF 30,000, 50,000, or 100,000 sitting in your account and wonder: all at once or spread it out?

The 4 Rules of Thumb That Work

1. The 20% Rule: Invest at least 20% of your net income

That's the minimum for serious wealth building. 15% is acceptable, 25% is ambitious, 30%+ is turbo mode. The number must fit your life — but it must exist.

2. The 25× Rule: How much you need for financial independence

Take your annual expenses and multiply by 25. That's your "FI number" — the amount at which you could live off your portfolio (4% withdrawal rule). At CHF 60,000/year in expenses: CHF 1,500,000. At CHF 80,000: CHF 2,000,000.

Sounds like a lot. But at CHF 1,500/month with 6% return, you reach CHF 1.5M in ~32 years. On a Swiss median salary. Tax-free.

3. The Age Rule: More equities when you're young

Classic rule of thumb: 120 minus your age = equity allocation. At 30: 90% equities. At 50: 70%. At 60: 60%. The longer your time horizon, the more volatility you can tolerate — because you have more time for recovery.

For most investors under 50 with a 10+ year horizon, we recommend 80–100% equities. Bonds in Switzerland currently offer little value.

4. The "Save the Raise" Rule: Every salary increase goes into the savings plan

You get CHF 300 more per month? Don't adjust lifestyle — increase your savings plan by CHF 300. Your current lifestyle obviously makes you happy (otherwise you'd have changed it). The raise belongs to your future self.

"It's not how much you earn that determines your wealth — it's how much you keep."

The Sequence at a Glance

This sequence isn't our opinion — it's the mathematically and tax-optimal sequence for any Swiss investor. Debt costs more than investments return. 3a saves taxes. The rest is compounding.