21H·

Portfolio presentation & feedback

Hi there, i'm quite new here around and I'm moving/restructuring my portfolio from a private banking to TR, following @DonkeyInvestor suggestion here is my portfolio presentation:

INVESTMENT HORIZON & GOALS:

I'm 38 yo from Italy, no wife no kids, not planning to buy a house, at the moment having a salary from my own business of 8.000 euro/month, saving 4.500/month this way: 430/month pension fund 500/month in bond fund, 3.500/month in my portfolio in TR.

Putting together TR, what is left in the private bank, pension fund and bond fund, i have a 620k at the moment.

My goal is to be financially independent as early as possible and to be able to live off my portfolio, i really don't like to work in an office 8.10 hours a day and in addiction i have an autoimmune desease that will probably keep in an hospital in a 10-15 year.

STRATEGY

Why i was investing in a private bank stealing a lot in fees? Well i was in period of my like when i like to complicate things, so: the bank basically lend me 80% of the investment to do real estate investment. So even if i was spending 2-2.5% cost on my portfolio (VS 0.20% of an ETF), i parallely investing the 80% lending in real estate projects that give me a 12% annualy (- 0.35% + euribor lending cost).

So basically, higher cost compared to TR of SC, but the possibility to leverage.

Now i just want to simplify life with less stress and so i stopped the real estate business and moving the portfolio to TR, started in may i will finish to move everything in november.

STRATEGY

At the moment as I told you I'm trying to move all the portfolio to TR (just because it is the only one having an italian account to calculate automatically taxes) and trying to maximize my saving monthly rate.

I cannot follow a complicated strategy as the ones used by users such as @Epi , that i follow with real interest, but i can't copy. I'm looking for a simple autopilot.

HOW THE PORTFOLIO IS STRUCTURED

430/month in the pension fund because Italy gives you a tax exempion of 50% on the money you put in a private pension fund with a cap at 5196 euro/year.

500/month in the bond fund is just a mind calming medicine, it yields 3%/year

3.500/month go to TR where I also transferring the money, almost in the same % as it allocated the lump sum, in this way:

50% in world ETF, divided into 4 ETF in equal parts: $XDEM (+0,63 %) + $JREG (+0,62 %) + $IQSA (+0,42 %) + $VWCE (+0,38 %)

To have a solid and stable growth, with a bit of factor

10% of EM with $EIMI (-0,41 %) and $FLXC (-0,84 %)

In the past I was not a fan of EM, but I'm guessing if the world paradigm is changing and China is finally gaining a real leading role in the future

5% GOLD $SGLD (-0,28 %)

Just for pure diversification

10-15% pure growth through $XNAS (+0,8 %)
$IART (+1,32 %)
$SMH (+1,54 %)
$QNTM (+2,49 %)

As a satellite to give a little boost in the long term, no matter the volatility

1-2% of frontier market through $XMKA (+0,34 %)
$DX2Z (+0,14 %)

Just for exotic reason

3% of a junk bond with a 14.5% yield $XS2800678224 (+0 %)

Yes there's a $BTC (+1,22 %) hold in Binance: i used to trade cripto in the past, i converted everything into BTC and hold it till my death

HOW I WANT TO PLAN FURTHER

Here is my real question for the GQ community. Of course I would like to have your opinion on the portfolio at the moment, but mostly i would like to know about the future, beacuse I don't know what to do at the moment between keeping this way or change to distributing ETF: as I told you at the beginning my plan is to try to stop working asap, even beacuse my health issue, and enjoy life. So every morning i wake up thinking: do i have to put all my capital and saving plan in $VWRL (+0,1 %) to start moving to dividend while growing? I'm not that young to just go to accumulating ETF but not old enough to move to high dividend etf that lost value, so i'm i bit lost. Maybe continue like this and than in 5-10 years sell everything (and paying taxes on capital gain...) to move to dividends?

I hope this was enough clear to share all the infos, while staying the more synthetic possible!

Thanks in adavnce for your thoughts & feedbacks

20Positions

418 687,55 €

9,39 %

12 Commentaires

Eselai@DonkeyInvestor

21H

Thank you for sharing and first and foremost for the detailed description. All the best for your health!

You don't want a complicated strategy, but you have lots of different ETFs. I am convinced that you could reduce these in a targeted manner. Regarding Bitcoin, you should consider whether you really trust Binance in the long term.

Selling everything, reallocating and paying lots of taxes doesn't make sense. It is much better to simply sell shares than to bet on dividends. When you want and how much you want. You are much more flexible than with dividends.

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Bufo Alvarius@Investedelycs

17H

@DonkeyInvestor thanks for the feedback! yes i want to simply a bit once all the money will be transferred, with few etf. About the bitcoin, quitting binance you prefer an etf of a real holding? regarding the dividends i'm quite agree with you: if the world keep offering an avg 9% return and you can live off selling a 4%

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Eselai@DonkeyInvestor

17H

@Investedelycs Regarding Binance: Either a hardware wallet or store it on an exchange that you trust. That could be Binance. But it wouldn't be my exchange of choice for larger amounts

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Bufo Alvarius@Investedelycs

17H

@DonkeyInvestor just to satisfy my curiosity, why are you holding distributing etf? 🥕 here a carrot to pay my debt for asking

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Eselai@DonkeyInvestor

14H

@Investedelycs Isn't that in my post that you referenced? Never mind. I hold distributing ETFs because I would very likely have a psychological problem selling shares when prices fall. It's not rational, but it's important for my mental health. Besides, it's not that much worse to hold a distributing ETF.

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Tobi@Tobiwankenobi500

20H

What kind of disease do you got? I have a little bit of medical background and maybe I can assist or add some quality of life :) all the best and most important part, money is nothing without a healthy body 🙏💓

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Bufo Alvarius@Investedelycs

17H

@Tobiwankenobi500 Thanks! Yes money is not important compared to health, but can give you the freedom of not working to enjoy life before the time you have to stay more at home/hospital. I have IgAN, kidney stuff

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Tobi@Tobiwankenobi500

@Investedelycs all the best!

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sql@sql

19H

I would take advantage of compound interest until you need to have that money by stopping working. If your time horizon is 10 years, I wouldn't hold gold either. Of course, my contribution is worth less than 2 cents..

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Bufo Alvarius@Investedelycs

17H

@sql thanks for you point of view, every feedback is important. So you prefer to compound and once you need the money stay invested and withdraw right? Like the 4% rule?

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sql@sql

@Investedelycs No, I didn't mean that, and I wrote to you in Italian because I understood, perhaps incorrectly, that you are Italian.
As far as I understand it so far (very little) the time-frame is perhaps the most important thing to consider when we make an investment. We are all looking for one thing: maximum return, minimum volatility. In a sense, the risk is only (excluding extreme events such as, for example, a solar flare) that we cannot get back the capital we invested. Let me explain a little better: if I invest with a 30-year time horizon, I can go 100% equities and forget both bonds and gold. The question is different when the time horizon is shorter. In general, for investments longer than 10 years, the stock market is statistically likely to return more than the bond market.
Your whole post is based on a constraint: I know I have an autoimmune disease, I don't want to work my whole life, I have no one to give my money to, I would like to stop working. So I would start here. If you are looking for FIRE (financial independence retire early) you have to deal with all this. If I were in your place I would first ask myself how much money I need to live on, then I would want to make an estimate of how much more I can live on, and then I would go and choose the investment. Forgive me for being so blunt and cold.
In the investment world I think you have to be as simple as possible, because there can be really big problems managing a portfolio. My personal choice is simple: I would like to forget my portfolio for the next 20 years. And my portfolio is 85% accumulating world ETFs 15% cryptos (maybe cryptos I can remember before 20 years). It's an aggressive portfolio, I'm 40 years old, and I'm thinking about my retirement. Then tomorrow maybe an asteroid hits me and this is all meaningless, but that's life.

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Bufo Alvarius@Investedelycs

3Min

@sql Thank you for your point of view, I absolutely agree with you. Aspect of time horizon is always the first one to keep in mind. In the past when I started investing I have always been 100% equities thinking about very long time horizons, I have recently started moving a little bit to gold and bonds, but still a small part at the moment. The point is clearly that I don't really know when the disease is going to take away my freedom, it could be in 2 years or in 15 at most, so I always have a big internal struggle on allocation, not so much on something defensive like bonds, but rather whether to stay on accumulation etf and when the time comes take out a 4% per year hoping for a 9% annual average as it has been historically, or whether to move to distribution etf and take the dividend despite lower growth.

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