2D·

Asset preservation for parents

Hello everyone,

I am currently working on suitable investment strategies for my parents.

At the moment they are using an overnight deposit account and a fixed-term deposit account to hold their assets (they know about deposit protection).

However, they also have a monthly savings plan in the FTSE All world, which will be held for 10-15 years in order to slowly withdraw/redeem it when they retire.

Now I ask myself what makes the most sense to avoid money hopping. Many people will now immediately think of the $XEON (-0%) However, I don't understand the composition of the bond/ETF or the hedging here, as there is an issuer risk in the event of insolvency, right?

What other alternatives are there besides the $XEON (-0%) what other alternatives do you use to keep your assets stable?

Thank you very much for your help and exchange, I am happy to be instructed! 🫶🏾 HAPPY HOLIDAY!

10 Comments

Tenbagger2024@Tenbagger2024

perhaps the $TDIV would be a nice addition

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Chiefwiggum@Hidalidsch

@Tenbagger2024 I've even thought that before, thanks again for the tip!

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userc811746a6d9041b6@userc811746a6d9041b6

The $XEON is very simple. 1. there is a carrier portfolio consisting of various short-dated bonds 2. there is a swap partner bank 3. the swap bank always pays the €STR + 0.08 and receives the interest from the carrier portfolio in return. 4. if the bank goes bankrupt, the bonds are sold and you receive your money from them. 5. Deutsche Bank is the swap partner and you can see the bonds here https://etf.dws.com/de-de/LU0290358497-eur-overnight-rate-swap-ucits-etf-1c/ ..... should something go bust, Deutsche Bank would have to go bust + the bond market would collapse completely, but then you can probably forget about the deposit protection.

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Olli@Olli68

Gold

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Wealth-Accelerator@Wealth-Accelerator

What about bonds?
You can currently build a nice interest rate ladder with them.

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Christoph@ChrisBizz

@Wealth-Accelerator Sounds very interesting. Would you like to briefly explain the interest rate ladder?

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Wealth-Accelerator@Wealth-Accelerator

@ChrisBizz
I have purchased individual bonds with good credit ratings with maturities until 2029, 2030, 2031, 2032, ..., ..., 2039, as I have repayments in these years on a loan that I got for less than 1%.
This means that regular coupon payments will free up money for me every year, which I can then use for repayments, with a net average interest gain of 2.2%.

You could structure it in a similar way.

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Chiefwiggum@Hidalidsch

@Wealth-Accelerator good suggestion, thanks for the explanation of the interest staircase!

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Chiefwiggum@Hidalidsch

@Wealth-Accelerator Are you focusing on government bonds or corporate bonds?

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Wealth-Accelerator@Wealth-Accelerator

@Hidalidsch
Both.
Longer-dated more government bonds.
But I also have a McDonalds bond in EUR and a Coca-Cola bond in USD.
Overall, however, 90% euros and 75% government bonds.

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