I'm starting my DIY pet health fund strategy to cleverly manage vet costs myself, I thought it would be much more fun to be my own insurer.
After reviewing and calculating the costs, I came to the conclusion that I would pay €30-40/month for my cat, assuming she has a life expectancy of 13-15 years, into a defensive portfolio instead of a monthly insurance premium.
From the age of 8 - 10, I expect the risk of more frequent treatments and high vet costs to increase enormously as my cat gets older.
Of course, I am aware that high costs can also arise much earlier, but you don't always have that when you build up reserves for a possible event in the future.
📊 I would start with this breakdown:
🛡️60% defensive (money market & short bond ETFs) = capital preservation & liquidity
⚔️40% offensive (equity & gold ETFs) = growth & inflation protection
- 20% $IS3Q (+0.3%)
10% $IWDA (+0.74%)
10% $EWG2 (+0.29%)
🏦 Payout rules:
- Deductible: €250 - €300, anything above that I will take out of the portfolio so as not to put too much strain on the capital stock.
- Liquidity buffer: at least €1,500 p.a. should be available in the defensive part of the portfolio.
🚨 The whole thing should give me more control and better returns in the long term - without the profit margin of an insurance company.
💬 Your opinion is not only wanted but also important. What do you think of such a DIY model? Risk or opportunity?
#DIYinsurance
