5Mes·

Money market ETF

Hello everyone,

My mother would like to invest money. A total of €30,000

15,000 will be invested in the $VWCE (+0,8%)

5,000 € in the $MEUD (+1,19%)

5,000 € in the $JEGP (-0,37%)

5,000 € remain in the clearing account

The interest from the clearing account and the monthly dividends are to flow into a money market ETF.

Do you have any recommendations?

19 Commenti

Fabian@FKabs

5Mes

Pro tip: Never play the "investment advisor" for family, friends, etc., you will always be the bogeyman!

I would explain to your mother how it works, what products are available, how they are put together, what the options are for her investment term, etc. so that she can make the decision herself.

•

Visualizza tutti 9 ulteriori risposte

Zerax@Zerax

5Mes

Recommendations for a money market ETF or for your allocation?

••

Nico@DerfligendeHollaender

5Mes

@Zerax gladly to both

••

Zerax@Zerax

5Mes

I would also advise you to leave out the $JEGP since CC and take the $TDIV or you simply put everything into the $VWRL which is distributing and you use the tax-free amount.

Money market ETFs would be e.g. $XEON or $CSH or even $XG01, although I would only park money in all 3 and not reinvest it or save it in a savings plan, because then a normal call money account would also do.

•

Olli@Olli68

5Mes

With $JEGP you will make yourself unpopular with your mother in the long run.

••

The W.@thewolfofallstreetz

5Mes

How did you arrive at the asset allocation?

••

Nico@DerfligendeHollaender

5Mes

@thewolfofallstreetz The basic idea was that my mother has had the money in her savings account for years.

She generally prefers very low-risk investments, so I thought about putting most of it into the global ETF $VWCE.
To balance out the dollar and US overweight, I added $MEUD to the mix.
For the monthly cash flow (to show her: "Hey, here you see € x.xx coming back every month") and also to make the stock market a little more accessible, I had considered the $JEGP with monthly distributions. But that's probably not going to happen after all.

The remaining €5,000 should remain in the clearing account, earning the few % interest and also being flexible for unexpected expenses. There is also a nest egg in an overnight money account.

••

Olli@Olli68

5Mes

@DerfligendeHollaender Since your mother won't be looking at her portfolio for another 20 years, I'd recommend a EUR-hedged world ETF instead of $VWCE. At least then you won't have any dollar risk.

••

ErpelofStocks@ErpelofStocks

5Mes

Well-intentioned advice: don't do it. After selling the house, my mom also asked what I would recommend she buy now. I sent her articles explaining ETFs. Our parents also need to understand what they are investing money in and know and understand the risks, otherwise things can quickly go wrong

••

Pascal W.@pwasbeer

5Mes

I have etf $JEGP these I am going to sell in the short term. This etf won't earn you anything in the long run. Better buy a $VHYL. JGPI is in a downtrend mainly because of the stronger euro.

••