3D·

📈 Our path to financial freedom💸

I've been reading here for a while and thought it was time to introduce our depot.

We are a small family with a 1.5 year old daughter and are not investing to get rich quick or to beat the market.

Our goal is to build up assets over many years and have more financial freedom later on.

Our portfolio currently stands at around 233.000 €.

The largest component is clearly the $VWRL (+0.72%) . The perfect foundation for us: invested worldwide, simple and uncomplicated.

In recent months, we have also started to increase our share of emerging markets in a targeted manner.

That is why we are currently $XEMD (+0.67%) with a high savings rate.

Our real EM share is currently only around 10-11 %, and in the long term we would like to be closer to 20 %.

We also recently sold our entire BlackRock position. Not because we have anything against the company - on the contrary. BlackRock is still included via our ETFs anyway. Our aim was to reduce the weighting in the financial sector, reduce the strong US bias somewhat and deploy the capital where we currently see more potential for our portfolio: in the emerging markets.

Our current savings plans:

🌍 $VWRL (+0.72%) : 750 €

🌏 $XEMD (+0.67%) : 750 €

👧 $VWRL (+0.72%) : 130 € (children's deposit)

In addition, all dividends are currently also flowing into emerging markets.

Our plan is actually pretty boring:

➡️ Invest month by month

➡️ Reinvest dividends

➡️ Give compound interest time

Let's see where we are in 10 or 20 years' time. I look forward to exchanging ideas with you and am eager to hear your opinions on our strategy. 🍀📈

Best wishes from the @FinanzPapa family

6Positions

€233,691.13

43.06%

12 Comments

Andrzej Bos@AndrzejBos

Respect, keep it up and you will enjoy this freedom.
I also invest in ETFs, but won't increase my rate until the kids are all out.

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alphawolf@alphawolf

A clear role model in terms of simple wealth accumulation, I'm curious to see what it will look like in a few years :) Personally, I'm just not a fan of the dividend ETFs, as they don't fit the objective, the first 3 ETFs would be enough for you.

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Thomas@Thomas_1963

A very nice portfolio and a great strategy. I'm going in the same direction with my wife's portfolio and mine.
I've been a pensioner since December 24 but will continue to work part-time until the standard retirement age (as long as my health cooperates).
This enables me to put 1,000 euros a month into savings plans.
I have also reduced the US share to 32% and financial stocks to 28%. My EM share is currently 11%. I am also aiming for 15-20% in the long term.

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Dukke@Dukke

Very cool. I like it. With such a savings rate and if you stick to such a strategy, you'll reach EUR 1 million in about 12 years.

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Ironicsw@IroNicsw

The savings rate is great! May I ask how you live?
Keep investing

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Charles@FinanzPapa

@IroNicsw in Saxony, my dear 🙈

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Ironicsw@IroNicsw

@FinanzPapa:D Okay, I was really thinking more along the lines of owning a home, renting, or living with family.
I’d also like to save more, but between paying off the house, my home savings plan, etc., plus my savings, my monthly “expenses/investments” come to 2,300 euros.

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Thorsten@silverbug999

I would never allocate such a large portion of my portfolio to a single ETF. If you sell, you’ll end up paying a lot in taxes (first-in, first-out). Once it reaches a certain size, I’d switch to a new ETF from another provider that follows the same strategy, if that’s what you want.

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Charles@FinanzPapa

@silverbug999 Thanks for the discussion—I've given it a lot of thought and have written a post about it.

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Thorsten@silverbug999

@FinanzPapa You're welcome! A lot of people aren't aware of this issue, or they underestimate it. There's a lot of money at stake here! There are so many providers offering identical ETFs these days. So it should be easy to put that into practice. Good luck!

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Ironicsw@IroNicsw

The savings rate is great! May I ask how you live?
Keep investing

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Finanzaristokrat@Finanzaristokrat

Question: Why pay a dividend if it's just going to be reinvested anyway?

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