1Mon·

Money market ETF

Hello everyone,

My mother would like to invest money. A total of €30,000

15,000 will be invested in the $VWCE (+1.18%)

5,000 € in the $MEUD (+0.6%)

5,000 € in the $JEGP (+0.05%)

5,000 € remain in the clearing account

The interest from the clearing account and the monthly dividends are to flow into a money market ETF.

Do you have any recommendations?

19 Comments

Fabian@FKabs

1Mon

Pro tip: Never play the "investment advisor" for family, friends, etc., you will always be the bogeyman!

I would explain to your mother how it works, what products are available, how they are put together, what the options are for her investment term, etc. so that she can make the decision herself.

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Nico@DerfligendeHollaender

1Mon

@FKabs had exactly the same thoughts at the beginning. If she has to take care of it herself, then the money will stay in the savings account like it has for the last 5 years.

That's why I only invest in the global ETF in US dollars and the European ETF in euros.
and the small addition for regular dividends.

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KingC@RaphGM

1Mon

@DerfligendeHollaender Does she understand covered calls?
Do you understand covered calls?

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Nico@DerfligendeHollaender

1Mon

@RaphGM I've heard it before, but I don't quite understand it, so I don't bother.

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Pezi@Pezi

1Mon

@DerfligendeHollaender why then $JEGP?

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Nico@DerfligendeHollaender

1Mon

@Pezi for a regular cash flow and the partial utilization of the saver's lump sum

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Nico@DerfligendeHollaender

1Mon

@Pezi ah okay, now I understand your question.

I actually didn't know that the ETF uses these covered calls.

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Pezi@Pezi

1Mon

@DerfligendeHollaender $JEGP uses a covered call strategy.... you write that you are not familiar with it.... do you really think that this is the right product for your mum?

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KingC@RaphGM

1Mon

@DerfligendeHollaender If you want dividend income for your mum, then it's better to use a simple product such as the $TDIV

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Floriano@FlorianoPerlini

4Wk

@FKabs Your tip is garbage. If you can't do it financially, please don't assume others can. Only losers give tips like that.

I manage my brother's and my mother's portfolio. Without me, they wouldn't be in the stock market and wouldn't invest at all.

I've also optimized all my mum's costs and increased her monthly income.

My ex got more support for her self-employment through me, I did her taxes and massively reduced all her costs. Mentally pushed and supported her.

I bought and installed balcony power stations in all households.

I got rid of all of my partner's DVAG waste contracts, optimized all of her contracts/costs and gave her tips on optimizing her salary in her part-time job. She will also start investing in shares and gold this year.

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Zerax@Zerax

1Mon

Recommendations for a money market ETF or for your allocation?

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Nico@DerfligendeHollaender

1Mon

@Zerax gladly to both

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Zerax@Zerax

1Mon

I would also advise you to leave out the $JEGP since CC and take the $TDIV or you simply put everything into the $VWRL which is distributing and you use the tax-free amount.

Money market ETFs would be e.g. $XEON or $CSH or even $XG01, although I would only park money in all 3 and not reinvest it or save it in a savings plan, because then a normal call money account would also do.

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Olli@Olli68

1Mon

With $JEGP you will make yourself unpopular with your mother in the long run.

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The W.@thewolfofallstreetz

1Mon

How did you arrive at the asset allocation?

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Nico@DerfligendeHollaender

1Mon

@thewolfofallstreetz The basic idea was that my mother has had the money in her savings account for years.

She generally prefers very low-risk investments, so I thought about putting most of it into the global ETF $VWCE.
To balance out the dollar and US overweight, I added $MEUD to the mix.
For the monthly cash flow (to show her: "Hey, here you see € x.xx coming back every month") and also to make the stock market a little more accessible, I had considered the $JEGP with monthly distributions. But that's probably not going to happen after all.

The remaining €5,000 should remain in the clearing account, earning the few % interest and also being flexible for unexpected expenses. There is also a nest egg in an overnight money account.

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Olli@Olli68

4Wk

@DerfligendeHollaender Since your mother won't be looking at her portfolio for another 20 years, I'd recommend a EUR-hedged world ETF instead of $VWCE. At least then you won't have any dollar risk.

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ErpelofStocks@ErpelofStocks

4Wk

Well-intentioned advice: don't do it. After selling the house, my mom also asked what I would recommend she buy now. I sent her articles explaining ETFs. Our parents also need to understand what they are investing money in and know and understand the risks, otherwise things can quickly go wrong

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Pascal W.@pwasbeer

3Wk

I have etf $JEGP these I am going to sell in the short term. This etf won't earn you anything in the long run. Better buy a $VHYL. JGPI is in a downtrend mainly because of the stronger euro.

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