1Anno
So you're doing this by the motto: mass instead of class? I don't really know your pension insurance, but would claim with the monthly contribution you pay monthly, you could also do better with a savings plan on a world ETF and then shortly before retirement a shift to bonds or from now on a savings plan on high-percentage government bonds both yield-wise and cost-wise.
I'm happy to learn, but it sounds to me more like you have the annuity because: that's "reputable," "that's how you do it." Hopefully you can enlighten me and debunk my preconceptions. And regarding my portfolio: I had a world ETF at the very beginning. However, I don't like the weighting of countries and their companies according to market capitalization, because it doesn't take the real value creation into account at all. Unfortunately, there is currently no offer of a world ETF according to pure GDP weighting that I could take. So I had to build my own world ETF using my TOP world regions strategy by GDP weighting (otherwise not to be overlooked in the profile description). In addition, I am also flexible and can react adequately to drastic changes in the economic strength of individual countries in years/decades via the weighting of individual region ETFs and am not dependent on the ETF provider in this respect.
I'm happy to learn, but it sounds to me more like you have the annuity because: that's "reputable," "that's how you do it." Hopefully you can enlighten me and debunk my preconceptions. And regarding my portfolio: I had a world ETF at the very beginning. However, I don't like the weighting of countries and their companies according to market capitalization, because it doesn't take the real value creation into account at all. Unfortunately, there is currently no offer of a world ETF according to pure GDP weighting that I could take. So I had to build my own world ETF using my TOP world regions strategy by GDP weighting (otherwise not to be overlooked in the profile description). In addition, I am also flexible and can react adequately to drastic changes in the economic strength of individual countries in years/decades via the weighting of individual region ETFs and am not dependent on the ETF provider in this respect.
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1Anno
@General_T_Regnery On the subject of pension insurance: I work as an insurance salesman and accordingly have a suitable policy with all the advantages. Your plan would only work if there is enough capital to get through to 100 or 110 years with this capital (depending on how old you get). In most cases it is actually the case that this capital is used up at some point and you are there at 95 and have no more money. Often money is withdrawn from a deposit for e.g. private purposes such as house building, etc. and then the capital is no longer enough. Your portfolio with the various Etfs can make sense. However, you have to consider that you pay TER for each Etf. There can come with 8 etfs what rum, depending on the invested amount. From my point of view not useful, because the rebalancing must also be done yourself. But everyone as he likes.😉
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1Anno
@Finanzios
I plan my private pension in such a way that I have enough capital at retirement age so that I don't suffer any major capital loss from interest on government bonds or dividends from a dividend ETF (I still have to think about this). Ideally, I will even come out with +/- 0 change in assets at retirement age. And even if that doesn't work out: I don't think I will live that long. And if I do: my descendants will certainly take care of me with a minimum of capital for the remaining years without capital, should I become very old. There should be no doubt about that. Much money I will then probably no longer need, since I would be the last maximum 10% of maximum achievable biological lifetime also accordingly physically aged and accordingly little with still capital from the pension could do. "Often the capital"...There you know me but badly. 😉 I have always been in my 20 years of life a thrifty person, was never in the minus with my account, am thrifty, put a lot of money aside and have always afforded only that and allowed the standard of living according to my available capital. Means: Either I can afford well adequately a house purchase or not. Then that's just the way it is. 🤷🏻♂️ Therefore I do not set however nevertheless my age precaution on play.... I respect that there are people, who enjoy their life in full trains (everyone has yes only 1). For me, however, it is completely enough. I am frugal. I think you have a thinking error with the TER. Since I already save everything with a savings plan, there are no one-time costs per product. And the annual management TER is a percentage. That means: There are no fixed costs like 5 € per year. The TER of let's say 0.25% accrues on average on each individual position. Therefore, one does not add the individual TER to a total. From them only an average value can be formed. Smaller positions do not lead to an explosion in costs, and the regular weighting of the individual positions is a clear plus point in my view. That was the main reason why I decided to leave the MSCI World.
I plan my private pension in such a way that I have enough capital at retirement age so that I don't suffer any major capital loss from interest on government bonds or dividends from a dividend ETF (I still have to think about this). Ideally, I will even come out with +/- 0 change in assets at retirement age. And even if that doesn't work out: I don't think I will live that long. And if I do: my descendants will certainly take care of me with a minimum of capital for the remaining years without capital, should I become very old. There should be no doubt about that. Much money I will then probably no longer need, since I would be the last maximum 10% of maximum achievable biological lifetime also accordingly physically aged and accordingly little with still capital from the pension could do. "Often the capital"...There you know me but badly. 😉 I have always been in my 20 years of life a thrifty person, was never in the minus with my account, am thrifty, put a lot of money aside and have always afforded only that and allowed the standard of living according to my available capital. Means: Either I can afford well adequately a house purchase or not. Then that's just the way it is. 🤷🏻♂️ Therefore I do not set however nevertheless my age precaution on play.... I respect that there are people, who enjoy their life in full trains (everyone has yes only 1). For me, however, it is completely enough. I am frugal. I think you have a thinking error with the TER. Since I already save everything with a savings plan, there are no one-time costs per product. And the annual management TER is a percentage. That means: There are no fixed costs like 5 € per year. The TER of let's say 0.25% accrues on average on each individual position. Therefore, one does not add the individual TER to a total. From them only an average value can be formed. Smaller positions do not lead to an explosion in costs, and the regular weighting of the individual positions is a clear plus point in my view. That was the main reason why I decided to leave the MSCI World.
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