>
Date: Thu, 27 May 1999 19:48:49 -0700
Status: RO
Louis,
if your last comment is true
(I thought there is a totalization agreement between the US and
Switzlerand, so the years paying SS tax should count towards AVS, no?)
then there is definately no reasons to pay the AVS at all.
In any case I believe that the revenue from the AVS (assuming it will be around
when I retire) will not be able to pay back what I put in unless I live well
past 100. I would count on it only if I fear that all my other investment go
really bad (what is the likelyhood of that?).
With a Bay Area salary 10% is a lot of monney that you cannot recover! This
forces you to invest your 10% in conservative manner and does not live you with
much monney to invest agressively (wich by the way you will need since the AVS
does not allow you to have a minimum standard of living as it is now)
IMOW
Luca
______________________________ Reply Separator _________________________________
Subject: Re: swiss-list: AHV / AVS with a stipend
Author: Louis Perrochon <lists_at_perrochon.com> at INTERNET
Date: 5/27/99 2:01 PM
>Comments are welcome.
Well, the US social security is similar to AVS and both do not pay enough
for a living without serious cut backs. And Switzerland has 2nd and 3rd
pillars which are oriented to personal savings (no extra penalty for not
paying 2nd pillar, 3rd pillar is completely personal decision). Putting all
of it in the stock market vs. more conservative investments like
Governement bonds or so is a personal decision.
I guess, if you are on a stipend, and you pay the minimum, AVS seems a good
deal. The maximum income that counts for the AVS pension is probably still
less than $50k. But you pay premiums on you whole salary. If you have a
salary (especially a Silicon Valley High-Tech one), paying over 10% for
swiss AVS seems like a very bad deal. Your probably still better off giving
up AVS and putting the money into treasury bonds. These are as safe as AVS.
BTW, I thought there is a totalization agreement between the US and
Switzlerand, so the years paying SS tax should count towards AVS, no?
Louis
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Received on Thu May 27 1999 - 19:52:00 PDT
