Anita and Peter Wenger are 27 and 28 years old, and newly married. They’re both keen to learn what the future has in store for them. One thing is certain: they'd like to start a family before too long and realize their dream of owning their own home. Both are working and they bring in a joint net income of CHF 120,000. They budget to spend around CHF 100,000.
It's mainly because of their plans for a family that Anita and Peter Wenger want to make sure they have a sound financial future. They decide to meet up with their client advisor at UBS. During the discussion what they want to know is: How can we build our retirement savings in a targeted way? And when should we start doing this?
Reserves and liquid funds
The Wengers and their client advisor work out how best to structure their CHF 50,000 in assets. A consumption reserve of CHF 30,000, about three months' income, seems about right. They'd also like to keep CHF 10,000 as a contingency reserve and invest the remaining CHF 10,000.
Reserves and liquid funds for savings and retirement provision
How much the young couple can save in a year
The Wengers have a joint net income of CHF 120,000. They've budgeted to spend CHF 100,000. That means they can save CHF 20,000 a year.
Annual potential savings