9Mes·

Hello everyone,

I would like to introduce you to my simple but fine portfolio. First about me, I'm 21, a student and still live at home. I started investing almost six months ago and have now switched from my initial foolishness to a more proven concept.

I plan to build up my portfolio into old age and will increase my savings plan rate from €70 to €200 from next year onwards - possibly even higher with more. The $CSPX (-0,08%) weighting will be reduced to 20% in the future, while I'm not sure whether $VWCE (+0,01%) unsure whether I should keep it or replace it with the $K0MR (-0,45%) (despite the higher costs) or the $SPYI (-0,12%) which seems attractive mainly because of the broader diversification. $VWCE (+0,01%) seems attractive.

I realize at the end of the day that this doesn't make the roast any fatter, nevertheless I would appreciate your opinions and thanks to anyone who has read through this.

Thank you!

6 Commenti

9Mes

1. don't switch too often, this is more important than deciding which All World you take.
2. Your savings rate has a much greater impact in the long term. So at your age, it's mainly performance during your studies that counts. If you can keep €200 without any problems, great. But don't start cutting out a hobby to get to 220. You start early, which is the most important step. Stubbornly and steadily stick to your savings plan, through good times and bad. And, of course, adjust it upwards if possible. Don't forget about life on the side 🙃

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bugra@bugra

9Mes

@KevinE Thank you very much, points 1 and 2 will definitely be taken into account

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Thomas@UndNun

9Mes

Yup, the best thing you can do is choose a few sensible ETFs that you can ideally save for 30 years.
Because what you don't want to see is that you have to switch in 10-15 years and then you have to pay 26.4% tax on all your nice gains and this loss will ruin your performance in the next 15 years in the new investment.

Example calculation:
Berkshire Hathaway has a long term average of 20% profit per year.
Let's therefore assume that you have to pay 10,000 euros in taxes due to reallocation.
If you had left it in something with a similar performance instead, it would have turned into a good 2.3 million after 30 years.

So it's extremely important to choose something good where you hopefully never have to sell early.
If you still have money left over, then you can add individual shares or ETFs with higher performance.
However, these should still yield more than the average S&P 500 after tax in the period in which they generate a profit. Otherwise you could have stayed with the S&P 500.

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Thomas@UndNun

9Mes

Of course, it would be even better if you could borrow €1,000 from your parents and pay them back €200 every month for the next 5 years.

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SemiGrowth@SemiGrowth

9Mes

Very good, your learning curve was small. Don't make it too complicated, the $VWCE is diversified enough. The performance over the year does not even differ by one percent from the $SPYI

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Thomas@UndNun

9Mes

Please have a look at this video, it's solid advice: https://youtu.be/05muePC_hyo

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