Lama (@MLana) on getquin

10Mon·

Good morning,

I need your advice. My father still has 10 years until he retires. Do you think it still makes sense to invest? He is not "rich". He would invest without any initial capital and only a small monthly savings installment. As it's his hard-earned money, I'm very worried. I hope you can help us and I am also interested in your opinion.

1. most people recommend a holding period of 15 years for ETFs. Is 10 years until retirement too risky for ETFs? But I mean, you don't have to liquidate your portfolio as soon as you retire.

2. neobroker or direct bank? More precisely TR or Finanzen.net Zero or ING? I find the costs of ING high during the savings phase. But I don't know, is a direct bank "safe"?

3. which ETF? MSCI World or FTSE Allworld? I like the $VDEV (+0.22%) . Is there anything against it?

And finally, thanks for reading. 😅

21 Comments

KingC@RaphGM

10Mon

If I were in this situation, this is what I would do:
1. since he didn't invest earlier, and it's a bit too late to benefit from the compound interest effect.
Therefore, I would go directly into a 100% fixed income (pension fund) portfolio, with monthly distributions, and reinvest the distribution until retirement, and then simply enjoy it.
At ING there are many free and low-cost savings plan options from Vanguard for such monthly fixed income solutions.
2. i wouldn't use a neobroker at all, no matter how cheap they are.
I personally would rather go with an old and established bank, and if possible a systemic bank (just check the list on the internet).
Nobody would care if TR or Scalable went bankrupt one day, but ING, Deutsche Bank or BNP Paribas would be a different story.
At such ages, you need stability and security.
3. see answer n°1, have a look at ING and search e.g. for distributing pension funds from Vanguard e.g. But other brokers also have very good options.

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Cro@Cro

10Mon

Ultimately, it depends on the amount you can save and your willingness to take risks. It's never too late! No matter which option you ultimately choose 👍🏾💯

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Horrax D@Horrax

10Mon

In such a case, I would rather go to a bank like ING.

There are also interesting mixed ETFs that focus on bonds and other assets in addition to equities.
Personally, I don't think it's ideal, but I can think of <security:n/a:LU0360863863>, for example.

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Rmann@Epi

10Mon

15 years should be the minimum, because in the backtest the MSCI World took a maximum of 15 years to return to its initial price. There are a few things wrong with this calculation, but it is a good guideline.

With equity ETFs, you can't guarantee that you'll get out more than you put in over 10 years. Your father seems to be a stock market snob and is not emotionally trained to cope with losses. This can damage your relationship, no matter what he says now.
So: the safest thing for everyone involved would be government bonds. If the amounts are small, distributing government bond ETFs. Your father should also have an opinion on which countries will still be solvent in 10 years' time. 😅

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Markus@_xempex_

10Mon

Why don't you start an interest calculator and see what you get after ten years and your desired savings rate at x percent.

And does he have any experience at all? If he buys etf or shares for the first time in his mid-50s and then it goes down 10 percent, I would stay away from the next family celebration if I were you...

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CoinEsel@DonkeyInvestor

10Mon

Correctly assessing the risk of a short investment period

https://app.getquin.com/activity/oyjGfrRRfr

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Melly@melly-m

10Mon

Another option would be a dividend portfolio.
This would allow him to build up additional income for his retirement.

I would not take an MSCI World. The payout is too low.
Better the vanguard all World.

If you want monthly dividends the stoxx Dividend (one of the few that pays in January) the Fidelity global Quality income for February - alternatively the MSCI Europe and for March the Vanguard all World

This would give your father an additional monthly income. Does your father want the. Withdraw everything from the stock market at once or could he leave the money in the market for longer with this option?

Even if he invests for 15 years and then withdraws it during your crash, the return could be low.

But you need to talk to your father and he needs to be clear about what he's doing and what the risks are.

I have a friend who is supplementing his pension this way. But he knows what he's doing and is an old hand at the stock market.

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