Ilir (@Ilir) on getquin

2Yr·

Hello dear comunity I am currently 17 and would like to know where I can invest so best currently think of etf but binn not sure if I should invest in etf and in which my budget is about 100€ a month what do you think of it need some tips

11 Comments

Moritz@leveragegrinding

2Yr

Basically, you can watch the financial flow Youtube channel at the beginning. Otherwise, a book on the subject can not hurt to get started. Before you invest in anything, talk best if your parents know about it with them. If not, vllt again @InvestmentPapa ask 🥴 achso & for your spelling I recommend @Lorena

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Stefan@InvestmentPapa

2Yr

First of all, "congratulations on the decision" to want to start with the topic already now. However, I hope you have set yourself a goal before the beginning and dealt with the reasons for investing? Except "get rich quick" every thought experiment is allowed... For the first moment it is indeed recommended to invest in a broadly diversified world-wide ETF. I myself am not a fan of an all-in solution (ACWI), but for reasons of simplicity I have also invested in this with my son and save it monthly. It would be the simplest and perhaps even the most sensible solution for your career start on the stock market. Personally, I would invest in a two to three-track variant from the beginning. 70/20/10 in World/EM/SmallCaps. Of course, some of you may think that this is much too complicated, because at 10€ per month on a SmallCap you will have accumulated just 120€ after one year. But that doesn't matter... you have time! And that is the much more important realization. If you keep up these three savings plans over 40-50 years and adjust them regularly to your income (salary), you definitely don't have to worry about poverty in old age. Provided that ETFs still exist in the form... but you can also not care. So what is the advantage of this three-pronged approach over an AllCountryWorldIndex ETF? Well... for one, you have a slightly larger (ok, almost double) emerging markets allocation than in ACWI (here the weighting is about 90/10) and for another, you have another return opportunity in small-cap companies. So the risk-reward profile is very fair. Two more little eastereggs for such an allocation and spacing of the ETFs? 1. You get to know volatility. Vola (= fluctuation in the market) is characterized by ups and downs. You have to learn to endure or even to savor these. It can hurt very much, especially in the beginning, if there are sudden "book losses". To sit it out and stubbornly continue is not witchcraft, but must be learned and tested. With ETFs on this basis you will probably not suffer a crash landing, you will not become rich with it... but in the long run probably nevertheless wealthy. 2. Balancing: You will come sooner or later on the taste to want to get out the optimum at net yield. Maybe you will even get "hot" for single stocks. However, since you are a beginner, you are strongly advised not to do so. With the possibility to make cautious attempts in balancing the ETFs to each other (i.e. restoring the 70/20/10 split) after one or two years, however, is definitely an experience and a steep learning curve. The upside? You are allowed to become active in this "boring" way and actively influence the course of events. In this way, you can still counteract your desire to act. Basically, the following applies: Build a foundation. This consists primarily of creating the ETF savings plans (whether ACWI, or WORLD/EM or WORLD/EM/SMALLCAPS is first of all no matter, is up to your taste) and the subsequent patience and the will to persevere. In this time you can learn more basics of your own. Important, after one year you draw a conclusion. If you have survived lows and highs, you can continue to run your savings plans. Did it hurt too much, you became weak in between or at the end? Never mind... then the stock market is not for you. But the fact is: You tried it, I'm going from the first point of view. Therefore my tip: The ETF(s) should be your basic investment. These products are the easiest to understand and in the long run probably the best investments you can have for a relaxed life. One last point: Try to stay with the 100€. This is not a little money. It is even a lot. I don't know where your education or training will lead you. But you still have a life. From 18 to 25 years the party goes off (not only in this time, but I guarantee you, you probably still have the lowest hangover probability here) - about the future I would not worry here constantly the head and certainly not go all-in with my available money... Consumption in this period is cool! But if you hold out the 100€ until you are 25 years old and then scale up depending on the salary... the thickness is enough! At the end stand with 7% annual average return about 11k. There are 30 year olds, 40 year olds... they start with less. That leads me to the last point: look only at yourself. What others do, recommend or advise - forget it. Of course you can and should ask for an opinion or advice, especially at the beginning (otherwise I would have written this text here for nothing), but in the end it is YOUR WAY and YOUR RESPONSIBILITY. You alone must look in the mirror at the end and give you speech and answer. I wish you much success!🍀 Thanks to @leveragegrinding for the attention.

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SharkAce@SharkAce

2Yr

It would be smart to inform yourself in advance. The more radical version would be: Get Trade Republic/ scalable Capital as soon as you are 18 - savings plan on the World/ EM or ACWI - and while that is running continue to inform and expand.

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Ella Marie Waschbär@DividendenWaschbaer

2Yr

On what do you make it depend if you ask yourself?

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Deleted User

2Yr

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