Florian Fleming · 2023-06-04T15:09:40.657326Z

My parents are about to retire (in 2 years) and have a substantial amount of money available to invest—about 200 k€. They would like to supplement their modest pension with dividends and interest. My approach would be: 40% ETFs: 70% $SPYD 20% $SPYW 10% $IAPD 40% individual stocks (dividend growth) $SHW $XOM $CAH $AD among others 20% Safety: 10% Cash 10% Money market account The key priorities are steadily rising dividends and avoiding excessive risk. I look forward to your suggestions 🙌😉

3Año

It makes little sense to focus on dividend growth when retirement is already two years away. I would rather buy companies that already pay high dividends.

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Florian Fleming@fcfleming

3Año

@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

3Año

@fcfleming one does not exclude the other.😉

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Florian Fleming@fcfleming

3Año

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

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Mister_ultra@Mister_ultra

3Año

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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Florian Fleming@fcfleming

3Año

@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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Mister_ultra@Mister_ultra

3Año

@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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TomTurboInvest@TomTurboInvest

3Año

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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Florian Fleming@fcfleming

3Año

@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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TomTurboInvest@TomTurboInvest

3Año

@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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Seventrader@7Trader

3Año

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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user13@user13

3Año

@7Trader What kind of stupid statement is that?

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Florian Fleming@fcfleming

3Año

@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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Seventrader@7Trader

3Año

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

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Seventrader@7Trader

3Año

@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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Florian Fleming@fcfleming

3Año

@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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Seventrader@7Trader

3Año

@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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user13@user13

3Año

@7Trader Make yourself smaller.

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Seventrader@7Trader

3Año

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

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Ma G.@Sparbuch_deluxe

3Año

@7Trader is reported ...

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Seventrader@7Trader

3Año

@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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Ver todas las 2 respuestas adicionales

user13@user13

3Año

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

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Florian Fleming@fcfleming

3Año

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

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user13@user13

3Año

@fcfleming In any case, stable value shares, $AMGN, $WM. Possibly also kings and aristocrats a la $PG, $MCD. To mix in high dividends like $MO or $ULVR.

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Mac M.@Kronos_

3Año

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

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Florian Fleming@fcfleming

3Año

@Kronos_ Thanks for your additions

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Mac M.@Kronos_

3Año

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

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Florian Fleming@fcfleming

3Año

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

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Tom@tom_finance

3Año

Replace individual shares with bonds

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Hendrik@hendrik_lmr

3Año

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

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Florian Fleming@fcfleming

3Año

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

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Hendrik@hendrik_lmr

3Año

@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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Florian Fleming@fcfleming

3Año

@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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Florian Fleming@fcfleming

3Año

@General_T_Regnery Legende

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Hendrik@hendrik_lmr

3Año

@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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Florian Fleming@fcfleming

3Año

@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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Hendrik@hendrik_lmr

3Año

@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@Tacticus

3Año

@fcfleming
Wieso? 😅

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Florian Fleming@fcfleming

3Año

@General_T_Regnery meaningless smiley without comment 😎

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Tim@Tacticus

3Año

@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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Ver todas las 2 respuestas adicionales

Stuttgarter81@Moneymoney

3Año

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

3Año

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

3Año

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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Florian Fleming@fcfleming

2Año

@KleinviehmachtMist danke

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Gerit@Gerit

3Año

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

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Jan@leveragegrinding

3Año

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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devnerd_daddy@devnerd_daddy

3Año

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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Florian Fleming@fcfleming

3Año

@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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devnerd_daddy@devnerd_daddy

3Año

@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

3Año

@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

3Año

100% ETF

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Louis@Dellou

3Año

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

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Kay 🍀.@EurieNet

3Año

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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Florian Fleming@fcfleming

2Año

@EurieNet what do you base that on?

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Kay 🍀.@EurieNet

2Año

@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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Florian Fleming@fcfleming

2Año

@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

2Año

@fcfleming https://www.gidf.at

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Florian Fleming@fcfleming

2Año

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

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Florian Fleming@fcfleming

3Año

Ok. How can you tell? Or how can I observe this?

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Leo@DasistderWeg

3Año

I would rather go for a time deposit with an annual payout in combination with a call money.

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userd2b0e147c9614b60@userd2b0e147c9614b60

3Año

Maybe you should have a look at this post: https://getqu.in/EuzKDT/xkZzLo/

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Arminius@Armin_ius

3Año

There are so many top companies right now that are extremely cheap and have little downside potential. I would pick individual stocks, not an investment recommendation of course. My choice would be: 10-20% each BAT, Verizon or AT&T (the latter just at support), CVS Health/ Walgreens, Bristol-Meyers Squibb, Abbvie, T Rowe Price, Target, Altria, W.P.Carey/ Realty Income. There are a lot of relatively safe divi and the turnaround potential is also given.

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Thomas@Mintaka

3Año

Could you give an example of the bonds?

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Nutellatoast@Nutellatoast

2Año

Schau dir mal $MAIN an

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