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Invest EUR 50,000 for your pension

Hello dear community!

Someone in my family (69) and a pensioner would like to invest EUR 50,000 immediately in distributing securities, preferably not too speculative. Now he wants me to take care of it.

I have in mind $ISPA (+0.68%) , $XGSD (-0.24%) and $TDIV (+0.68%) .

I know that the first two track the same index, the idea is to spread the distributions out a bit.

What do you think and does anyone have any other good suggestions?

20 Comments

TotallyLost@TotallyLost

What do you mean? You can also say NO, I can already see it coming in the next bear market, when the 50000 are only worth 30000, then you are the scapegoat... I would think VERY WELL about it.
But if someone were to put a gun to my head, it would either be $JEGP $TDIV or $GGRP...

How much dividend yield is envisaged?
Does it have to be shares or is a fixed income product sufficient?
What does "not too speculative" mean? How much drawdown can the person withstand?
All the ETFs you mentioned already had a maximum drawdown of >30% and would be considered speculative by "normal" people.

You might also make a combination of 40% fixed-income (e.g. $D5V3 ) and 60% equities, in which case the vola is already significantly lower.

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Epi@Epi

Only dividend stocks are likely to be somewhat risky. They often fall particularly sharply during crises. Better to diversify across different classes: https://extraetf.com/de/etf-portfolio/jeden-monat-ausschuettungen

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ThomasHH@ThomasHH

Buy 145 shares in $ALV
This will yield 2,407.00 in dividends at the next distribution. That's 200 euros a month gross or 147 net.
If the tax-free amount is still applicable, of course more.

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Sven@Svengus

@ThomasHH All eggs in one basket?

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Gehebeltes-EFH@Gehebeltes-EFH

@Svengus "...a firm alliance with happiness!!!"

https://youtu.be/kzhTOafsHfg?si=As19J5kpLw0tRC3f

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ThomasHH@ThomasHH

22H

@Svengus I have invested 200k in Allianz for many years. With quality stocks as a long-term investment, the risk is no greater than the market as a whole.

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Sven@Svengus

15H

@ThomasHH Everything in one share would be far too risky for me personally. You can see what can happen with United Health or Novo Nordisk and countless other examples. A Stoxx100 also pays out 4.5 to 5.0%, spread over 100 stocks.

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Wif@salvo89ari

"I would no longer invest at the age of 69, especially not in risky investments. At this age, the focus should be on capital preservation, liquidity and health care - not on returns through new investments. He probably doesn't want to invest the money for the long term anyway, but rather keep it available for the short term. I would tell him frankly: at your age, it's too risky to invest new capital in volatile markets. Instead, you should build up reserves for unforeseen expenses and protect your assets."

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Capt‘n@Wuestenschiff

At that age, I would go for something like $JEGP.

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Sven@Svengus

@Wuestenschiff I also have a small position in my portfolio, but it has been performing really modestly for months (in EUR) 🤷🏼‍♂️

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Snopy@Snopy

@Svengus modest yes, but not bad. This is primarily about the dividends. So if the value remains the same, you make 8% return per year. At least at the moment. Which is not bad.

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Wif@salvo89ari

at 69 is too risky people
he should rather protect his capital from risk
rather see the money as an emergency fund in case something happens to his health

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Wif@salvo89ari

"Buying an ETF at the age of 69 doesn't make sense in my view. The risk is too high - especially if there is a market slump. Selling in panic, as many do in such situations, can quickly lead to a capital loss of 10 to 20 %. And all this for a potential additional monthly return of perhaps 200 euros? This is disproportionate to the risk. At this age, the focus should be on capital preservation, stability and flexibility - not on speculative wealth accumulation."

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Thomas@Thomas_1963

@Wuestenschiff just not with a one-off purchase. I got in with 40k in March and have now got rid of it with a loss of 5k.
High payouts are not everything.

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Sven@Svengus

@salvo89ari The EUR 200/month would help the person enormously.

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Wif@salvo89ari

@Svengus
If he was 40 or 45, I wouldn't say that at all.
say. But to invest €50,000 over 60 - just to get a paltry €200 a month - and run the risk that his capital could easily fall by 20%? And then he's supposed to wait for years until he might be back in the black? Honestly, I don't understand that. Does he even have any reserves in case he or someone in his family suddenly needs medical care? Or will he then have to sell in a panic? Before you invest, you should think things like this through very clearly. I don't think he can really assess that - neither the risk nor the emotional pressure."

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Sven@Svengus

@Wuestenschiff Would you focus exclusively on $JEGP or would you add one or more of the ETFs I have in mind?

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Pezi@Pezi

I would advise against it. In my opinion, the only product that could fit would be the $XEOD

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Sven@Svengus

Thanks to everyone for the numerous constructive suggestions and points of view!

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Giuseppe@Kyagi

See the sample portfolio on extra ETF are awesome made https://extraetf.com/it/etf-portfolio/distribuzioni-mensili-con-obbligazioni?tab=dividends

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