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6beqc
@6beqc
2Lun·

Hello everyone,


First of all about me:

I'm 21 years old, I'm doing a dual degree and have been investing since 07/2023. So far, my portfolio has a size of approx. 17,000€.

My plan is to invest approx. 70% in the $ISAC (+0,36 %) and 30% small growth stocks such as $HIMS (-3,12 %) , $SOFI (-2,28 %) , $MSFT (+3,66 %) etc.

The idea behind investing is mainly to supplement my pension and to ensure that the money in my current account is not gradually eaten up by inflation...; i.e. the investment horizon is 30-35 years.


Now to my actual question to you, to get one or two more experienced opinions :)


Until I was 18, my parents regularly saved in a building society savings account, which has been "lying around" with an annual interest rate of 3%.

For over a year now, I've been toying with the idea of closing the building society savings account and transferring most of it to the $ISAC (+0,36 %) for the most part.

The building society savings plan was only opened to save money and therefore, after a short time, the waiver of the reduced loan for later housing construction etc. was declared.

As a result, a premium of around €2,500 would be added to the amount of around €15,200 when it was paid out.

In this respect, the idea of reallocating came to me, but I wanted to get one or two opinions from a neutral perspective beforehand in order to weigh it up again...


When I spoke to the contact person at my bank on the phone two days ago without obligation and mentioned my idea, he wasn't so convinced, as the "stock market harbors great risks".

He was also very enthusiastic about the Uniglobal investment fund $DE0008491051 investment fund and that the bank would also offer this for me, although this idea didn't really appeal to me and I now prefer the $ISAC (+0,36 %) prefer.

What do you think of the bank advisor's idea?


Otherwise, I would be grateful for any opinions and wish you a pleasant evening and a nice rest of the weekend :)

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32 Comentarios
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Sina@lawinvest
2Lun
The bank advisor wants to earn money. In the case of an actively managed fund, his employer collects commission, which in turn is paid to him as a salary or sometimes (depending on the bank) as a bonus or commission.
In short: costs are too high
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6beqc@6beqc
2Lun
@lawinvest I was already thinking something like that, thank you :)
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Dividende > Zinsen@GoDividend
2Lun
@lawinvest He is also a salesman but "tied" to a product portfolio - he can't sell anything he doesn't have. He does his job.

In the future, banks will have to come up with something to pick up the generation that deals intensively with the various products. I agree with your conclusion
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Lukas R.@stocker_1013
1Lun
@lawinvest I was sold the fund for my VL, 56% in 3.5 years. Absolutely ok.
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Kai@Dividenden-Sammler
2Lun
It would have been interesting to hear the advisor's answer if he is not so convinced about the stock market, which carries great risks, but then offers you an equity fund that invests in precisely this risk, as he sees it.
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Sina@lawinvest
2Lun
@Dividenden-Sammler who then typically replies: due to the broad diversification, you acquire fractions of hundreds of companies and thus cushion the risk. That's partly true, but it's still the stock market 😅 oh and of course active management
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Kai@Dividenden-Sammler
2Lun
@lawinvest but you can see that if you put your mind to it, you can really get the advisor swimming ...
Why does the ETF have no diversification compared to the fund?
The cost point (TER) clearly speaks in favor of the ETF.
Active management ... which fund manager has beaten its benchmark index over the long term?
and I think you can think of enough other questions that speak against the advisor's recommendation and he can hardly talk his way out of why the fund should be better.
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Sina@lawinvest
2Lun
@Dividenden-Sammler I subscribe 100%
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Krush82@Krush82
2Lun
As always, the bank advisors only want the best for you. And that's your money :-)
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Enrique@Dividenden_Monteur
2Lun
Bausparer with 3% is actually not bad.
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Julian@MoneyISnotREAL
2Lun
I think the bank product salesman's reasoning is cool:

"No, don't buy the low-cost ETF with a global diversification in equities under any circumstances. That involves major risks!
Instead, buy our expensive fund with a global diversification in equities." 😅

In a nutshell:
Fund 🚫
ETF ✅
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6beqc@6beqc
2Lun
@MoneyISnotREAL that's what I thought on the phone 😂
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Sina@lawinvest
2Lun
Small addendum: Be careful with building society contracts and premiums. Firstly: check again whether the entire capital earns interest at 3% or only the annual deposit. Secondly, if the building society contract is not ready for allocation and you terminate it (and do not choose payout due to allocation) then the premiums are lost for most contracts.
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6beqc@6beqc
2Lun
@lawinvest It is ready for allocation and since 2020 the requirements for the premium would have been met upon payout.
I have now looked again and actually get the current credit balance with 1% p.a. interest according to the annual statement...
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Sina@lawinvest
2Lun
@6beqc then I would consider pulling the money out
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Daniel@Dr27589
2Lun
Check what conditions are attached to the premiums. And how high the costs are! The 3% is usually upfront costs. Depending on this, I would make a further decision if I were you.
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6beqc@6beqc
2Lun
@Dr27589 the building society saver pays 1% interest annually on the current balance, which I can see from the annual certificates....
All the requirements for the above-mentioned bonus should have been met by now, as the building society saver has been running for 12 years and the favorable loan interest rate has been waived.
Accordingly, as far as I know, the bonus should be paid on top when it is paid out.

Thank you for your answer 🙋🏽‍♂️
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Daniel@Dr27589
2Lun
@6beqc with pleasure. Then get the critters out.
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Levi@Dagobert20000
2Lun
An alternative thought.

Talk to your parents. I would explain the idea (whatever it looks like exactly) to them. I can't judge, but some people feel offended if their plan is simply changed. That may not be the case for you, but it's certainly not wrong to be open about it. After all, it was your money.

Depending on your reaction, I would leave it at 3% (if that's the case) or put it in your ETF. Maybe buy a single share, the money is already quite a lot.

Good luck and thank your parents.
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6beqc@6beqc
2Lun
@Dagobert20000 I have actually already done this and they give me the freedom to "dispose" of it, as a lot of money from my childhood that has accumulated in this way has also flowed into the building society.
Regardless of this, I really appreciate it and communicate this to my parents, as it's not a matter of course for me to save such a sum over the years. 😊
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Levi@Dagobert20000
2Lun
@6beqc That seems like a healthy relationship with your parents. Congratulations on that!

I would then do as you wrote above. Such an ETF should make more than 3%.

If it then rises significantly, you can invite your parents to a weekend in a hotel.
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Steve91@Steve91
2Lun
If you don't need the money, then put it in your ETF. Maybe wait until Q1 25, when there will be a correction
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Brokémon@Brokemon
2Lun
@Steve91 Unfortunately, this is just speculation. With ETFs, I would only look at the timing in extreme cases, otherwise: Time in the market beats timing the market
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Dividendenopi👴@Dividendenopi
2Lun
Sounds a lot like Volksbank and Schwäbisch Hall ...😇. 3% guaranteed and without risk is not that bad, e.g. to take advantage of the tax-free amount. Otherwise, it's better not to use an active fund for cost reasons. You decide which ETF you take according to your strategy
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6beqc@6beqc
2Lun
@Dividendenopi You're actually right... 🤓
just keep the building society savings account to make partial use of the tax-free amount or just gradually put it into an etf via a savings plan?
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Dividendenopi👴@Dividendenopi
2Lun
@6beqc I would at least not go all in now. However, you have a long investment period and can easily ride out fluctuations. And from the past, you will probably earn more than 3%. So in my view, there's nothing to be said against switching. If you want to keep some cash back for the next few months, I've parked a large amount at 3.3% overnight interest at ING for 6 months and I'm putting the money into various ETFs bit by bit each month via a savings plan until the money is used up
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6beqc@6beqc
2Lun
@Dividendenopi I wasn't planning to go all in at once, I would have increased the savings plan on the etf accordingly so that the money paid out would gradually flow into the etf...
Parking the money in an overnight deposit during this time is of course worth considering.
Thank you 🙋🏽‍♂️
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Brokémon@Brokemon
2Lun
TL,DR: away with the Bausparere, into the MSCI World (or split S&P500 + MSCI Europe)

I hold the Uniglobal for the reason that I only have 0.75% fees (actually it would be up to 5!%) - of course the fund management still takes its share. In the long term, it performs similarly to the MSCI World - the composition is also almost identical.
I'm just too comfortable to liquidate and reallocate the Uniglobal, as the differences are insignificant. If I were 18 again, I would laugh in the face of my bank advisor and confidently invest my money in ETFs.
LG!
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6beqc@6beqc
2Lun
@BlackBrock As I want the etf to have a weighting of around 70% in my portfolio, I thought I would increase the savings plan accordingly for a few months until the money is gradually fully reallocated.
When the bank advisor checked that I very probably wanted to close the building society savings plan, he immediately came around the corner with the "cool" investment fund that the bank would also offer me. I had to stifle my laughter a little because I thought that the costs would be much higher than with a low-cost etf....

Thanks for your answer :)
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Spacepanda@Spacepanda
2Lun
If you have the money, put it all into the ETF. And not bit by bit. With that amount, it doesn't make much difference
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Jari Stark@MainTyp
2Lun
That's exactly what my bank advisor tried to do with me when I was your age. Look at the costs. Remember that he can only offer you what he has ... and where he makes money. It's all in the mix
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Gomerdoc@Gomerdoc
2Lun
Stay away from home loan and savings contracts. They bring NIX. In the long run. Only the investors earn money from them, and they invest your money in ETFs on the stock market.... MSCI World Index, S+P500, or simply Dow Jones index funds: buy, save regularly, and forget about it. Retire at 50: this is absolutely realistic if the savings rate can be reasonably high. The Dow Jones Index has doubled approximately every 10 years since 1905. sh**** matter whether it's the Great Depression, Black Friday, the Korean and Vietnam Wars, the Cuban Missile Crisis, the oil depression, the dotcom bubble, the sub-prime crisis of 2008, Donald Trump, Obama, Harris or whatever: the Dow always rises. That's what the US economy has been doing reliably for 265 years. And CAVE: The Dow is a share or price index: it does NOT take into account the dividends of the companies it includes!!! (The Dax, for example, does, but is still garbage). If you include the dividends in the performance or return for the investor of the Dow Jones for the last 100 years: infernal performance. Schwäbisch Hall doesn't even do that in its wet dreams..... And when the US economy finally crashes: Then nothing on the planet will work anymore, not even building society savings contracts, gold or cash....
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