My own milestone (tl:dr)
The starting point and the burning dream of the million
It wasn't just a number on a screen; it was a promise. The promise of freedom, of decisions that were not dictated by a paycheck, of the possibility of realizing dreams that went beyond everyday life. My goal? The 1 million euros in my deposit. A sum that seemed almost unattainable when I first immersed myself in the fascinating world of investing. But I couldn't let go of the thought. What if it was actually possible? What if, with discipline and the right strategy, I could achieve this seemingly utopian goal?
The fascination began to creep in. I heard about breathtaking returns and stories about people who became rich overnight by making smart decisions. The stock market, a place full of secrets and opportunities. My starting position was solid, an initial foundation stone had been laid, but I lacked a clear roadmap. I was at the beginning of a journey that would take me through highs and lows, from initial euphoria to sobering setbacks - and finally to a strategy that allows me to look to the future with confidence today.
The single stock era - lessons from the "wild west" of the stock market
Like so many, I started out with a desire for quick profits and a fascination for the possibility of getting rich quickly through individual shares. Why invest in the broad market when individual shares promised so much more? I plunged headlong into the world of individual shares. It was names that were in the news, sectors that were booming or personal convictions that guided me. Every share was a little adventure, every price movement an adrenaline rush.
But the reality was often different from the glossy prospectuses or the euphoric forum posts. The euphoria quickly gave way to disillusionment. I remember the year 2022. Like so many others, I experienced a market that suddenly no longer knew only one direction: up. In my personal heat map of monthly returns, deep red fields emerged that year and even before. Months with -1.3%, -1.7%, -2.0%, -2.4%, -2.8%, -3.0%, even -3.4% were not uncommon. That was painful. Every look at the portfolio was a sting.
However, the problem was not just the bear market itself, but also the way my portfolio was structured. Without broader diversification, my risk was unnecessarily high. If one share fell, a large part of my portfolio fell and @DonkeyInvestor said: I told you so :-) .
The turning point came gradually, but inexorably. Frustration at the lack of stability, the realization that my individual "strategic" decisions were often just a gut feeling, and the desire for a more calculable path to a million led me to a far-reaching decision. It was in November 2024 when I pulled the ripcord. The individual share "experiment" was over. It was time to realign my portfolio.
The realignment - from single stock turbulence to ETF stability
The decision was clear: a restructuring of my portfolio was necessary in order to invest stably and efficiently in the long term. The new anchor of my strategy was to be ETFs.
Why ETFs?
The answer was simple: diversification, lower costs and risk spreading. With ETFs, you can invest in hundreds or thousands of companies at the same time with a single investment. This means I am no longer dependent on the fate of a single company, but benefit from the growth of entire markets and the global economy.
The major restructuring started in November 2024 and was a phase of intensive analysis and consistent implementation. Individual shares were sold and the freed-up capital was immediately reinvested in broadly diversified ETFs. It was a liberating move, a departure from the emotional rollercoaster ride and a step towards a rational, long-term investment strategy.
Today, in May 2025, my portfolio has a market value of €210,000 and reflects this transformation. It is a carefully curated mix that aims to achieve my million-euro goal efficiently and with calculable risk:
- The Global Anchor - HSBC MSCI WORLD UCITS ETF ($HMWO (-0,77%)
):
This ETF forms the core of my portfolio. It invests in around 1,600 companies from 23 industrialized countries and is my most important building block for long-term global growth.
- The US giant - S&P 500 USD (Dist) ($VUSA (-0,79%)
): - My targeted bet on the innovative strength of the 500 largest US companies. - The income powerhouses - JPM Global Equity Premium Income Active UCITS ETF ($JEGP (-1,13%)
) and JPM Nasdaq Equity Premium Income Active UCITS ETF ($JEPQ (-0,02%)
): My "cash cows" that provide me with continuous capital. - The dividend champion - VanEck Mstr.Dm Dividend.UC.ETF ($TDIV (-0,99%)
): - another pillar of my dividend strategy. - Quality and dividends - Fidelity Gl.Quality Income ETF ($FGEQ (-0,82%)
) and WisdomTree Gl.Qual.Div.Gr.U.E. Registered Sha ($GGRP (-1,19%)
): ETFs that invest in high quality companies with sustainable dividends. - US Dividend Aristocrats - SPDR S&P US Divid.Aristocr.ETF D ($SPYD (-0,69%)
): Companies that have consistently increased their dividends for at least 25 years. - The European focus - iSh.STOXX Europe 600 U.ETF ($EXSA (-0,06%) ): a newer position that strengthens my diversification in the European region.
This structure forms the foundation of my current strategy: a clear core of broad market ETFs (MSCI World, S&P 500, STOXX Europe 600) is complemented by targeted satellites for high dividends and specific quality characteristics.
The strategy, or rather my roadmap for the future - discipline, cash flow and steady reinvestment
My path to a million is not a sprint, but a marathon that depends on discipline and a clear strategy. A significant amount flows into my portfolio every month - a total of € 1,610. This amount is made up of my active deposit of € 1,500 and € 110 from the reinvested dividends of the ETFs eligible for savings plans.
The distribution of my monthly savings plans is deliberately chosen to continuously strengthen my growth core:
- HSBC MSCI WORLD UCITS ETF (HMWO): 1,000 €/month
- VANGUARD S&P 500U.ETF DLD: 350 €/month
- ISH.STOXX Europe 600 U.ETF: 300 €/month
- WISDOMTREE.HMS.Z12/UN.XAU: 60 €/month (small proportion of gold for diversification and inflation protection)
The dividends are much more than just a nice bonus - they are a key driver for the growth of my portfolio through the compound interest effect. I'm already expecting an impressive €6,900 in gross dividends for 2025.
The challenge of dividend reinvestment
One problem that many investors also face is the challenge of dividend reinvestment at my bank, ING: automatic reinvestment only works if the net distribution of an individual ETF is at least €75.
If I haven't miscalculated and the dividends remain stable, this hurdle should be overcome for the ETFs in question.
Otherwise, I accumulate on my clearing account and then make a manual one-off investment in the VUSA or EuroStoxx600 as soon as a larger sum (between €500 and €1,000) has been accumulated, or I increase the savings plans to the two mentioned in the following month. This allows me to make the most of the compound interest effect and reduce the costs of transaction fees at the same time.
This approach has helped me to focus not on short-term gains, but on long-term growth and a steady income through dividends. It is a path that has proven its worth over the years and has continuously brought me closer to the goal of
1 million euros closer.
Looking to the future - The million within reach and the passive dream
My goal is clear: €1,000,000 in my portfolio. This milestone is not just a number, but the foundation for future financial freedom and the realization of my dreams.
Based on my current portfolio value of € 210000 (May 2025), my monthly investment and reinvested dividends and a realistic assumption of an average annual return of 8.0% p.a. (which is achievable for broadly diversified equity ETFs in the long term), I have a clear timetable in mind:
I will reach my goal of 1 million euros in the portfolio probably in April 2040. That is still about 14 years and 11 months of disciplined investing. The reinvestment of all dividends is the absolute key here. Without it, the road to a million would take almost a decade longer! This awareness motivates me anew every day.
Let's see if that works and whether I'll find this post on Getquin to repost again.
