1Sem.·

Help with loans.....

Hello again.

I was made aware of bonds here by @SchlaubiSchlumpf and I find the investment not so uninteresting. I haven't quite got to grips with the whole thing yet, but the topic is becoming interesting now that the first 300 euros are available. In addition, interest rates are falling and if I have understood the bond issue correctly, the yield increases as interest rates fall.

For me, the $EXVM (-0,01 %) would come into question. Short-term bonds and in € to avoid the currency risk.

Can such an ETF also be fed with a savings plan?

For me, I would still have to decide whether to start the savings plan with the entire amount or whether to split it and go into an All World in parallel.

How would you handle this?

Robert

@Zony

1Mo·

9 years of investment, your opinion please 🤔

Hello everyone,

I am now planning the final home payment spurt (does that word even exist?)

We have a monthly amount of 300,- over because a loan is expiring. This amount is to be used later (9 years) to pay off the loan. The 300,- should of course not be accumulated in the pillowcase.

The question for me now is whether I should put the whole amount into a money market ETF or an All World via a savings plan. As it is virtually earmarked, it should be invested with as little risk as possible.

What would you recommend?

I think so.

Greetings

4 Commentaires

Epi@Epi

1Sem.

Before investing in bond ETFs for the first time, you should read up on the subject.
Short-dated bonds yield less when interest rates fall, so they become less interesting.
Long-dated bonds usually rise when interest rates fall. But if inflation expectations for the next 10 years rise at the same time, prices fall. And if the credit rating is questionable, then even more so.
With an inverted yield curve, short-dated bonds offer more than long-dated bonds.
The exchange rate risk is dominant for USD bonds, at least for short-dated bonds.
Everything is a little different with medium-term bonds.
Bonds also behave differently from bond ETFs.

There is so much to consider with bonds. Learn first, then invest! 👍

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Uwe@SchlaubiSchlumpf

1Sem.

Beyond my suggestion about short-dated government bonds with a low credit rating, I don't know that much, just layman's knowledge. But it sounds sensible to me. I could save for it at Trade Republic.

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six@six

1Sem.

I also have the $EXVM as a safe share in my portfolio.
If ING had the $XG01 in its savings plan, I would probably have taken it (as it is accumulating).
Otherwise, I'm still considering adding $EXHA to $EXVM.

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Brody@Brody

1Sem.

With your investment term of 9 years, you would have achieved a negative return in the past with $EXVM. If you are specifically interested in bonds in €, filter bonds with a term of up to 10 years and look for companies or countries with a good credit rating. McDonald's, EON and Telekom, for example, currently have bonds tradable via TR.

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