1Yr

@HarryE In principle, you are right. However, the idea is that the dividend will increase annually at best.

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Harry E.@HarryE

1Yr

@fcfleming one does not exclude the other.😉

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Mister_ultra@Mister_ultra

1Yr

@HarryE ok what do you think of the split in principle and do you have a suggestion for individual stocks?

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1Yr

Shortly before retirement, you are in the classic savings phase. Growth should no longer be the focus here, and even if I don't normally think much of it, something in the direction of high dividends is more appropriate in this phase. I prefer a Verizon with 5% dividend than a Microsoft with less than 1%. In addition, especially in view of the changed interest rate level, bonds! A German Bundesschatzanweisung offers you more than 3% interest with a maturity of about 1.5 years and zero risk. Also short-dated corporate bonds or government bonds offer themselves. Best of course also on a euro basis. Important to me in this phase would be a high cash flow. The price development is then rather unimportant. Better 5% distribution and 2% price growth than the other way around. Therefore my idea: 25% High Dividend ETF 25% Div Growth 25% short-dated government bonds or directly German bonds 25% broadly diversified bonds (e.g. something in the direction of Global Aggregate Bond ETF) Then you have a little Growht with it (25%), but this majority is on distributions.

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Mister_ultra@Mister_ultra

1Yr

@Mister_ultra Thank you very much for your effort and your suggestions. Which investment form would you recommend for "DivGrowth" stocks or Etf?

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1Yr

@fcfleming in that case rather etf, because less work. there are two exciting ones from wisdomtree and fidelity. the fidelity Global quality Income and wisdomtree Global quality dividend Growth. they should hit the target exactly :)

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1Yr

I find this question too general - there are still some factors or circumstances that need to be considered. E.g. how is the current housing situation, how high is the expected small pension, are there pre-existing conditions that could indicate an earlier death, is there additional income in the pension, etc. Maybe it makes sense for them to just spend the money and fulfill their big dreams. Or are you already looking at your inheritance?

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1Yr

@7Trader What kind of stupid statement is that?

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1Yr

@7Trader It is not the idea to disclose everything here. I think I have already shared some things. The pension is small, I am not looking at my inheritance, but I want my parents to be able to live off their savings for a long time.

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1Yr

@Krynt that's just my opinion about it. maybe it's stupid that you 🦧 can't accept any other opinion.... 😉

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1Yr

@fcfleming Ask your parents how they want to use the money and don't get ideas from the community. Your parents have earned the money and have certainly thought about it for a long time. What is their plan?

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1Yr

@7Trader thank you for your instruction. in my opinion, the community is there to exchange ideas, or am I misunderstanding something? thank you for your constructive support 😉

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1Yr

@fcfleming in another comment you wrote that your parents want to leave the money in the bank, why can't you support their wish and find them the best "banking option" instead of saddling them with the risk of the stock market in their old age?

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1Yr

@7Trader Make yourself smaller.

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1Yr

@Krynt very special conversational.... Okay little 🦧, I'm off 😉 And btw f*#ck you 😇

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Ma G.@Sparbuch_deluxe

1Yr

@7Trader is reported ...

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View all 2 further answers

1Yr

@Sparbuch_deluxe Is that your seat neighbor, or why are you acting up now? First the Grinch condemns me as stupid and then that "I should make myself off". Do you Kipferl really think that insults are not followed by reactions? So go ahead report 😅😉

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TomTurboInvest@TomTurboInvest

1Yr

2 years before retirement 80% in ETF and individual stocks... puhh daring. Do not misunderstand, but I'm glad that I manage my money for the pension itself and not sometime in the hands of my children must give and the then my pension verspekulieren 🤷🏽‍♂️ I do not know of course except the small pension, how it looks otherwise so.

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TomTurboInvest@TomTurboInvest

1Yr

@TomTurboInvest Yes, that may be the case with you. But unfortunately it would remain with my parents only on the account and I consider that on view of the inflation also for daring.

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1Yr

@fcfleming I understand, but there are alternatives between stocks and accounts. Take a look at the drawdowns of ETFs over the last 25-30 years - then you know how much ETFs can collapse and how long it can take for them to recover. I had to endure a lot between 2000 and 2015, and I don't want to have that again when I start my pension... and especially in times like these, that's not unlikely - I'm just talking about Russia, China, Taiwan and the like. But as long as your parents feel comfortable...

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1Yr

Shortly before retirement, there is no need to focus on dividend growth.

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1Yr

@Krynt ok what would you do and invest in (real estate and crypto excluded)?

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1Yr

@fcfleming Aufjedenfall stable value stocks, $AMGN, $WM. Possibly also kings and aristocrats a la $PG, $MCD. To the admixture then High Dividend like $MO or $ULVR.

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Mac M.@Kronos_

1Yr

There are a few good dividend stocks missing Rio Tinto, Allianz, Post , Johnson and Johnson , Cola,

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1Yr

@Kronos_ Thanks for your additions

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Mac M.@Kronos_

1Yr

@fcfleming May is always the most beautiful month for German shares😁.

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1Yr

@Kronos_ haha yes there you have partly also tax advantages or?

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Tom@tom_finance

1Yr

Replace individual shares with bonds

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1Yr

I think I would choose 50% $VHYL and 50% bonds, as long as the bonds yield +3% interest.

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1Yr

@hendrik_lmr that's not too tight. Only two titles?

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1Yr

@fcfleming By narrowly diversified, do you mean too little? There are 1,767 different shares in $VHYL and I would not spread the bonds broadly, but restrict myself to reliable countries such as Germany and the USA.

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1Yr

@hendrik_lmr No, that's not what I meant. I only mean two securities, one ETF on equities and one on bonds. Basically, I already see a certain risk with ETFs in the case of non-physical replication.

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1Yr

@General_T_Regnery Legende

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1Yr

@fcfleming I understand the point about non-physical replication 👌🏽 Well, the number of etfs doesn't necessarily make a portfolio more diversified. Do you want to have multiple etf or bond positions in the portfolio? If so, what do you expect from that? And such positions as cash or overnight money are not investments for me, so I left that out.

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1Yr

@hendrik_lmr Well, there are different types of index tracking (physical/sampling/synthetic) of the ETFs and thus also different risks. No, I would not build up several bond positions. If then deliberately on German government bonds.

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1Yr

@fcfleming yes I know, I said that I understand the point 😂 So it's because of the optimized sampling? I don't think I've understood what you mean by "tight" yet, but maybe we're getting hung up on something here too 😂 I would definitely do it the way I described at the beginning

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Tim@Stratege_Tim

1Yr

@fcfleming
Wieso? 😅

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1Yr

@General_T_Regnery meaningless smiley without comment 😎

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Tim@Stratege_Tim

1Yr

@fcfleming
Thought this is self-explanatory. Especially for share class. "Many" positions in your portfolio =/= diversification (number: normally significantly less than 100 companies) Many positions in the investment product ETF = diversification (number ~ more than 1000 companies) The difference is significant and should be independently recognizable for everyone! 😉

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Stuttgarter81@Moneymoney

1Yr

Dividend etf I find good 👍🏻... I would then no longer take individual shares - too high risk. I would also invest a part in long-dated bonds - I think the 60/40 strategy makes sense. Can be supplemented with a few gold coins and time deposits - Targobank now offers 3.5 percent for 18 months - was advertised yesterday at the cup final 😂.

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Patrick Bateman@MrBateman

1Yr

Max. 40% ETF (!), 40% bonds and 20% overnight money. Cash is for me daily money because available within 1-2 days. Now shortly before retirement it is called capital preservation before yield! Keep your hands off individual stocks. Adequate risk diversification statistically only from at least 30 positions across all sectors (finance, consumer, tech, etc.). Building up positions is only possible over time if the entry price fits or the cost-average-effect has the possibility to work via a savings plan. Do not run after a stock where the price is too high!

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Sparfuchs@Reinecke

1Yr

Don't they have a plan? After all, they have 200k in reserves and are still working. Let them continue with their successful strategy. Interest rates are also coming back, rumored to be 5%.

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devnerd_daddy@devnerd_daddy

1Yr

@KleinviehmachtMist danke

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Gerit@Gerit

1Yr

a High Dividend Yield ETF should be it. preferably with about 4% dividend yield, below that makes absolutely no sense.

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Moritz@leveragegrinding

1Yr

200tsd in dividends seems very good at first (= approx. 4-6 tsd€ dividends per year) but you can't get your hands on the money anymore. Not an easy situation. Would look around for financial advice, but here very well sorted and quietly bring their own knowledge (but not be this one annoying customer who thinks he knows everything better.) on this above all: Basically can be done with ETFs almost everything themselves what also offer funds, only hedging runs mostly about this. Put the money now in dividends or ETFs is great risk and not well thought out, comes 2030 the next crash, your parents visit but money from the then no longer 200tsd ... Extreme minus business.

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Anditisgone@Anditisgone

1Yr

You need more $FUSD, SPYD is beaten down heavily. Similar yield better positioned imho. I have both.

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1Yr

Okay they have a small pension, but what else do they have? Do they live in their own house? Is the pension enough for a basic life? Is the money supposed to be just a bonus? How much extra should it be per year? These are all important questions that remain unanswered. Let's take a $HMWO with about 2% dividend. Then you would have about 2000€ extra per year with an all-in, but good growth. If that's okay, I think that's a good way to go. But what if you might need the money spontaneously? Then maybe it should be only 70% World and 30% Bonds or with the current offers sometimes call money. After the offers expire, you can always shift into bonds. In my opinion, blanket answers won't help here. Look together with your parents what they want or need and then let them decide. This is extremely important, let them decide because they need to be happy with it. My parents are also close to retirement and don't need their money for now. Still, they are happier with a defensive Scalable portfolio than an aggressive World ETF. I would have done the latter, but it's not my money and therefore not my responsibility.

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devnerd_daddy@devnerd_daddy

1Yr

@devnerd_daddy you have your own house which is paid off. The basic pension barely covers the expenses, however. The money is supposed to be a bonus, a hedge and protected against inflation.

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1Yr

@fcfleming Then it really depends on your parents' wishes. My father-in-law also wanted to afford something once and spent. If that's what they want, I would rather go for call money and bonds. If they only want to indulge moderately, you're probably doing pretty well with 70:30. Then there's still something for spontaneity, but you also have growth. Growth is not bad, because if nothing comes up, you still have a good 10 to 15 years before any expensive care is added. You should just keep an eye on the market and if the growth yields good profits, shift every now and then. Of course, this limits the good returns, but at 80, your parents may need cash on the spur of the moment. Then you can start saving up for the bonds.

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devnerd_daddy@devnerd_daddy

1Yr

@fcfleming Oh, and one more thing. I don't know how much you make, but you can obviously minimize risk by throwing your money in the ring. That's how my parents did it. My grandma had an apartment that was making a good return, but not enough for care. So my parents basically gave her a monthly loan that came out of the inheritance at the end and kept the house in exchange. You can do the same with risk investments, but it's important to discuss this beforehand. Otherwise there are very quickly negative feelings with. Edit: So quasi 100% $HMWO and you pay out in an emergency per month X€ to her. With credit contract. Works best if you are the sole heir.

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Jonas@Aktien4freedom

1Yr

100% ETF

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Kevin D.@KevinDamrat

1Yr

In my opinion, Mercedes Group is a good reliable stock with high dividends 🤝 Even though it is currently valued quite high, I see potential. And the DCF Valuation also gives it away

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Louis@Dellou

1Yr

Why 10% cash? Why don't you put the whole 20% into call money?

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Kay 🍀.@EurieNet

1Yr

I wouldn't take any American stocks, the dollar is just disappearing from the market, so a high dividend won't do you any good either.

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1Yr

@EurieNet what do you base that on?

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Kay 🍀.@EurieNet

1Yr

@fcfleming The dollar has become the reserve currency through a diel that Saudi Arabia sells their oil in dollars. This is no longer the case, nor are the BRICS countries, or rather they are working on it. The Fed has to compensate for this with ever higher interest rates.

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@fcfleming https://www.gidf.at

1Yr

@EurieNet Since when does Saudi Arabia no longer settle its accounts in dollars? The BRIC states are a vision, but they are far from being a single currency. That would not work.

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Kay 🍀.@EurieNet

1Yr

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1Yr

@EurieNet so according to my Google you can't find anything there. 🫶🏽

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