Hi folks,
I'm about to make a major strategic change to my portfolio this month. I have cracked the €120,000 mark 🎉 and have taken this as an opportunity to weatherproof my allocation for the coming years.
Here is my roadmap:
1. the tax "life hack": FIFO optimization 💡
I stop my previous core ETFs ($VHVG (+1,82%) , $MEUD (+1,65%) , $EXCH (+2,57%) ) and leave them untouched. Why? In Germany, the FIFO principle (First-In-First-Out) applies. By saving new ISINs from now on (MSCI World ex-USA, NASDAQ 100 & MSCI EM), I "protect" my old shares with the high book profits. Later, I can sell the younger tranches first with less profit and massively defer the tax burden.
2nd core update: USA cap & EM limits 🌍
From now on, my core (approx. 74% of the portfolio) will be re-saved with €280 per month. I love US performance, but don't want any bulk risk:
USA cap: maximum 55% in the core.
Emerging markets: cap at 10%
3. satellite & venture: my high-conviction stocks
This area should make up 20% of my portfolio. Here I invest €400-600 per month in themes that I absolutely believe in. Currently in focus:
Cloudflare ($NET (+6,25%) ): Infrastructure & cybersecurity are the basis of everything for me.
Siemens Energy ($ENR (+3,66%) ): My play on the energy transition and grid expansion.
Hims & Hers ($HIMS) (-6,34%)Exciting disruptor in the telehealth sector.
Tech from the Far East: With Xiaomi ($1810 (+5,08%) ) and CATL ($3750 (+0%) ) I cover important future markets.
Coinbase $COIN (+12,69%) complements my direct Bitcoin holdings (target: 3.5% crypto share of the overall portfolio).
Other additional stocks are $NBIS (+25,32%) , $000660 and $RKLB (+13,89%)
4. the big goal: retirement in 2054 🏁 or perhaps even earlier
The math is done: I am aiming for a final capital of around € 780,000 by 2054. With a sustainable withdrawal rate of 4%, this will give me a monthly pension of around €2,600 without having to deplete the capital stock in the long term, thus closing my pension gap. It should be mentioned in the calculation that I calculate with a 5% return per year instead of the expected long-term return of 7-8% and therefore include a safety factor.
The whole thing is rounded off with a 3% share of gold (Euwax Gold II) and 17% bonds as a safety anchor.
What do you think of the FIFO tactic? Do you also use different ISINs for the same market in order to remain flexible in terms of tax, or is that too much "portfolio messing around" for you? 😉 And what do you think of my selection in the venture sector?
