10Mes
First of all, kudos to you for entering the stock market early and for your reflexive approach to investing. In principle, you can continue like this until you reach financial freedom.
A thought for inspiration: in my opinion, your diversified passive strategy is more suited to an investor who is in the middle of life, around 30-50. Because you still have so many years left, your risk of return succession is very low, i.e. you could and should take higher risks. This makes sense because you have to reduce the risk a few years before the payout because of the above-mentioned risk of return succession and this is the only way to achieve the total market return.
What do I mean by more risk? I mean assets or ETFs that are more volatile but promise higher returns in the long term. These include, for example, tech $CSNDX, small caps $SPYX, crypto $BTC. These could be added to a $ACWI with 30%. That would give you returns and security.
In any case, good luck and always remember: the best returns still come from your own education! 🚀
A thought for inspiration: in my opinion, your diversified passive strategy is more suited to an investor who is in the middle of life, around 30-50. Because you still have so many years left, your risk of return succession is very low, i.e. you could and should take higher risks. This makes sense because you have to reduce the risk a few years before the payout because of the above-mentioned risk of return succession and this is the only way to achieve the total market return.
What do I mean by more risk? I mean assets or ETFs that are more volatile but promise higher returns in the long term. These include, for example, tech $CSNDX, small caps $SPYX, crypto $BTC. These could be added to a $ACWI with 30%. That would give you returns and security.
In any case, good luck and always remember: the best returns still come from your own education! 🚀
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10Mes
@Epi Thank you very much for your feedback! I'm unsure about the higher risks in that my monthly savings installment is still quite limited at the age of 17. Investing in these ETFs from this rather small amount is just a question. Perhaps it would be better to wait until my savings rate is a little higher?
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10Mes
@Epi Yes, but doesn't it make more sense to build up a kind of low-risk basis first and then try things out later?
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10Mes
@Felixxxx This may be what intuition and the older gentlemen (who prefer to invest with less risk themselves) say. The figures say the exact opposite.
Or to put it another way: when in your life do you have a better opportunity to sit out losses and exploit gains with compound interest than when you're young? Objectively speaking, your risk tolerance decreases with each passing year.
There are even scientific articles that show that you should invest with leverage in the stock market at a young age if you want the optimum risk/return profile.
Or to put it another way: when in your life do you have a better opportunity to sit out losses and exploit gains with compound interest than when you're young? Objectively speaking, your risk tolerance decreases with each passing year.
There are even scientific articles that show that you should invest with leverage in the stock market at a young age if you want the optimum risk/return profile.
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10Mes
@Epi Do you have any articles for me? :)
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10Mes
@Epi Thank you!
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