2D·

Update: target for 2026 🎯📈

Less than a month after setting my goal for this year, the target has changed. My investment amount for the portfolio is decreasing, but first of all this year's expenses:

BAföG repayment from my partner

In order to receive the maximum discount, the repayment will be made as a one-off payment (€7900).
Our current cash is already reserved for other investments. Therefore, other funds will be used for payment:
3x our custodial investments Jan-Mar. (3x 600 € x2 = 3600 €)
3x parental allowance plus Nov.-Mar. (5x 750 € = 3750 €)
550 € from the joint account

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New car

After my car gave up the ghost in November and my deposit had to be used for a new one (approx. €10k), a second car will follow at the end of April (if everything goes smoothly in terms of delivery time). As my car (Golf 7 4-door saloon) is already well filled with the baby carriage and I also need the car to get to work, we decided on an electric SUV. Thanks to corporate benefits, we received a very good major customer discount on the gross list price. Added to this is the current premium from the state (thanks to my low income over the last two years. Keyword student 😁). The bottom line is a discount of just over €12k - that tastes good!

the car is paid for in cash
the premium can only be applied for from May. Until then, our cash balance will be reduced to a lower four-digit amount

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Wedding/ Honeymoon

As our cash balance has been significantly reduced due to the car purchase, the funds available for the wedding & honeymoon have been drastically reduced.

Since we are not planning a classic wedding, but only a registry office + food truck/ coffee cart with just under 20 people, and the vacation will also take place as a backpacker again, as it always has, we are expecting just under €8k here.

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But what exactly is changing in terms of the deposit?

Well, first of all the cash flowing in. Since Jan.-Mar. are no longer available, €1800 of capital that can't be put to work will also be lost.

Starting capital: 15000 €
Target by 31.12.: €25000
Deposits: April-December á 600 € (= 5400 €)
Required increase in return: € 5400
Required return: 25,4 %

Here you can see how strong the effect is if the € 1800 cannot work from Jan.-Mar. The required rate of return increases from 9.1 % to a whopping 25.4 %.

This is really extremely frustrating. As around 2/3 of my portfolio is currently based on gold, a lot depends on it. So the more crises there are this year, the better for my portfolio 🥴

I will also probably not go down the route of investing 2/3 of my invested capital in the $VWRL (-1,09 %) to invest. I'm more likely to invest in more volatile, more promising stocks.

But to be honest: that's complaining at a high level. We are debt-free, a big purchase is imminent, plus an expensive event, and we can still fill our portfolio. And as soon as my partner comes back from parental leave, our income will increase again. Then we can also increase our savings rate.

What do you think? Is it feasible?

Ps: Household income is €56k net.

HoldTheMike

@HoldTheMike

1Lun·

Objective for 2026 🎯📈

After plundering part of my deposit in November last year (broken car had to be replaced immediately, 10K for the "new" used car), I dropped back to 15K.

The move two months earlier had flattened what I had saved up to that point - how could kitchens have become so incredibly expensive in recent years? 🙃

The target by the end of the year is 25K. As there are some major expenses coming up this year (approx. 10K BAföG repayment for my partner, approx. 21K family second car and wedding + honeymoon (to be honest, I haven't thought about how high the expenses will be here. But certainly not five figures) and my partner is also on parental leave until October 2027, the monthly savings installment will amount to €600. The same amount will be saved in my partner's custody account. In addition, the children's custody account with €150 per month.

In order to reach my goal of 25K, I need a return of 9.1% this year.

My strategy is not yet set in stone. However, I am leaning towards 400€ $VWCE (-1,15 %) and 200€ in stocks that have tenbagger potential (spread calmly over 100 years. 10% per year is enough for me).

I am confident that the community project "Tenbagger of the future" will help me to achieve this year's goal. My high proportion of gold should also have a positive influence on the current and probably future market turmoil. And with my cryptos, it would be nice to reach the EK again in the course of the year. 😅

My yield today is just under 3.2%. If it's the same tomorrow and the day after tomorrow, I'll simply sell everything and be happy to have reached my target. 😁

What are your goals for this year? And are there any of you who are starting this year with a completely different strategy than before?

10 Comentarios

This can work, but as you have already written, you have to take more risks.

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Wiktor_06@Wiktor_06

Very interesting article. And very nicely calculated. A very feasible thing for me. Keep going.
I'm also €13,000 short of reaching the magic €25,000 at 20 this year.

I'm trying to keep my savings rate constant, but due to expenses for an apartment that I'm going to rent out in April, I won't have any for February and March. But I'll get there.

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TradingHase@TradingHase

Feasible yes, but I don't think so with two thirds of the capital in gold, unless it explodes again like last year, which I doubt. 🤷🏼‍♂️

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BeachPlease@BeachPlease

Remember to take the GHG quota for your electric car with you 😃

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Solitair@Solitair

Two new cars on just 56k net for two plus a child? Seems a bit wasteful to me. But maybe I'm just in a different frame of mind because as a single person with a higher net income, I'm still driving my 25-year-old Golf 4.

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HoldTheMike@HoldTheMike

@Solitair Unfortunately, the connection here is modest. As a result, my partner is "stuck" as soon as I drive to work. A used car that meets our requirements wouldn't be much cheaper, and then you don't know what you're getting.

The new car should be able to be sold again in three years' time (at which point we'll tend to sell it) for slightly less than the price we're paying.

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ShrimpTheGimp🦐@ShrimpTheGimp

@HoldTheMike you do know that a new car loses between 40-50% after 3 years? Despite all the subsidies/discounts etc. E-cars have a poor sales value anyway. I wouldn't speculate like that, it could backfire 😉

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Wealth-Accelerator@Wealth-Accelerator

@Solitair
I would rather call it "normal".
You are simply relaxed and frugal.
And you follow the principle: "Nobody ever got rich from spending."

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HoldTheMike@HoldTheMike

@ShrimpTheGimp The mileage will be around 8k km per year.
The saving of 12k € corresponds to 37%. Don't worry, there's not even that much speculation :)
The only uncertainty is how the market will feel about electric cars in three years' time.

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Chris@Multibagger

Since the last time I bought a car was 20 years ago, I can't say anything about depreciation costs.

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