2D·

Presentation

Actually, I'm just a silent reader here, but I'd like to introduce myself and my overall portfolio.

First of all, about me and my family situation:

I am now 40 years old, married and have 2 children (3 and 8 years old).

My first "real" salary only came in 2013 for me and 2015 for my wife after her traineeship.

I/we only started investing and/or saving shortly before coronavirus.

Before that, my wife and I dutifully paid back our student loans from the KFW bank. We both paid €500 in tuition fees for each semester in NRW and as we didn't receive any financial support from our parents (it wasn't a case of not wanting to, but not being able to), we also received Bafög on top of our student job salary.

My wife works part-time 60% as a teacher and I earn my money as a store manager.

We have around €6,000 as a joint household net income, which is enough to live on in Cologne, but is a far cry from an annual 14-day all-in vacation in a family hotel.

Our savings behavior:

Pot I

This is where we save up equity for a single-family home for our own use, with varying degrees of success.

Somehow it's like tilting at windmills.

We save €300 a month here.

As of now approx. 30000€

250€ $XEON (-0 %)
50€$SPYI (+0 %)
irregularly in fixed-term deposits with a short term

Pot II

This is our pension pot. We save €275 per month in this pot (annual adjustment of 5%).

As of now approx. 7500€

27,50€ $EQQQ (-0,08 %)
27,50€ $EWG2 (+0 %)
27,50€ $BTC (+0,66 %)
27,50€ $TDIV (+0 %)
165€ $SPYI (+0 %)

One core and four satellites with different directions.

Pot III

Our nest egg is invested here in call money. The nest egg is actually full, but more is always possible;

another €50 a month goes in here

Pot IIII

This actually consists of several pots and is more of a consumption pot.

Reserves/wear and tear/new purchases 150€
Vacation 100€
Family fun (larger trips, eating out, etc.) €50

However, this is only the fixed part.

At the end of the month, this pot and pot I receive equal amounts (25% of the money) that is "left over" at the end of the month.

This is usually €250-600 depending on how quickly children's feet grow or pants wear out 😁

Owning a home is not a must and we have no need. We live in a nice modern 4-room apartment in a quiet area of Cologne for rent with moderate to low rent.

We have a car that belongs to us, which is driven to the end and one that I pay tax on every month.

I hope I haven't forgotten anything. Sometimes the principle of pots seems too complicated and kind of quirky, but it works for us.

You are welcome to leave me feedback.

9 Comentarios

David@DerUnwissende

It all sounds very logical and if it works for you, keep it up. You have to be able to sleep well with your strategy and it's different for everyone.

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NichtRelevant@NichtRelevant

I think it's good that you're doing all this together and are taking a very systematic, planned and disciplined approach. The 'pots' are good for not losing track of things - I would keep them that way if I were you.

I'd like to comment on 'pot 1' because that's where I'm most involved.
To find out whether and to what extent this is realistic, you should take the opportunity to research the purchase prices in your area. Only then will you be able to say what your target corridor is in order to start implementation at a point in time 'x'. Normally, you need around 20% of the purchase price as equity to be able to set up financing. I wouldn't rely on renting cheaply until retirement age (and beyond) and would rather 'pay off' than transfer monthly rent.

Even if it all (purchase prices) looks very expensive: Please don't give up straight away! Maybe you can find something in need of renovation that you can fix up with your own work + friends. Or 'just' an apartment. Or you can make friends with a change of location and move to a place with lower real estate prices but similar earning potential. Or (big bazooka) you can finance a multi-family house that is almost self-supporting for the bank through the rental income and move into an apartment or a floor there. There are lots of options and strategic approaches. Just don't be put off right at the start.

I'll keep my fingers crossed for you 🙂

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Dolly@Dolly

The home is a dream, if it fits, then it fits.
We started out together with €20000 in debt in NRW capped for our studies (tuition fees at state university + student grants).
We've both been in "active" working life for around 12 years now and don't have much in the way of assets, but we're in the black; we have two great children and we're proud of that.
And if the property comes on top, that's just the cherry on top 🍦

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Metis@Metis

I'm just wondering whether the money that goes into your already full nest egg wouldn't be better spent on your retirement provision.
Because I think there's still a need there. Especially for two people.

Apart from that, I don't have any feedback if you feel comfortable with it and are consistent in implementing it.

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Dolly@Dolly

@Metis
Your objection is completely justified.
As things stand now, my wife will receive a pension that I can only dream of with my pension.
Assuming you stay together for life (we've been together for 22 years now), that's already factored in, as either pot I is converted into residential property or is used to provide for old age in some other way.

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Stuttgarter81@Moneymoney

So if you are realistic, the detached house will remain a dream. Most of the assets are invested very defensively, as they are in pot 1. The markets are currently highly valued (at least it feels that way), but if there is another DIP like the one in April, then I would rather put pot 1 into the stock market. Pot 2 is very one-sidedly invested in the US market - as a retirement provision this would be too one-sided for me. Best wishes and continued success 🍀👍🏻

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Chandra@Chandra

The equity for the property is a bit low for your neighborhood and you're not saving very much in this pot.
How much is your basic rent, if you don't mind me asking? The €300 + basic rent (I'll leave out the surplus for now. No one should sew on the edge like that) is about what you would have left for interest and repayment of the property. (minus insurance for the house, property tax, etc.)

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Dolly@Dolly

@Chandra As things stand at the moment, I will be able to increase my savings rate by €300 next summer, as the daycare fees for my son will no longer apply.

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