First of all, congratulations on the €1 million - that's not exactly common. Then why do you need a msci world and an acwi? You have quite a bit of overlap there
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@Fabianfeuer Thank you! Not quite 1 million yet, but I think I'll make it this year 🙌
On the subject of MSCI World & ACWI: I'm aware of the overlap, but it's developed that way:
I originally saved in one, but later preferred the other. Selling and reallocating doesn't make sense for me at the moment, as it would involve unnecessary transaction costs. MSCI World as a basis, ACWI for a little more emerging markets, without having to buy a separate EM ETF.
I realize that a simplification would be possible
On the subject of MSCI World & ACWI: I'm aware of the overlap, but it's developed that way:
I originally saved in one, but later preferred the other. Selling and reallocating doesn't make sense for me at the moment, as it would involve unnecessary transaction costs. MSCI World as a basis, ACWI for a little more emerging markets, without having to buy a separate EM ETF.
I realize that a simplification would be possible
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•@SwissWealthBuilder Depending on your tax situation in Switzerland.
In Germany, it makes sense to save in a second world ETF after a longer period of time (avoiding the FiFo principle).
Background:
The ETF that has been saved in for the shortest time (will generally have the lowest profit) has the lowest tax burden, i.e. this is the first to be saved in the retirement phase.
Then the second youngest and so on.
As a result, the oldest ETF with the highest price gain continues to generate returns with assets that have not been paid in (compound interest effect).
I myself have a $VWRL and have been saving in the $HMWO for some time. The overlaps don't matter, because whether I have e.g. 2x 10000 € or 1x 20000 € makes a marginal difference in the overall composition (due to the ETF composition with/without EMs).
In Germany, it makes sense to save in a second world ETF after a longer period of time (avoiding the FiFo principle).
Background:
The ETF that has been saved in for the shortest time (will generally have the lowest profit) has the lowest tax burden, i.e. this is the first to be saved in the retirement phase.
Then the second youngest and so on.
As a result, the oldest ETF with the highest price gain continues to generate returns with assets that have not been paid in (compound interest effect).
I myself have a $VWRL and have been saving in the $HMWO for some time. The overlaps don't matter, because whether I have e.g. 2x 10000 € or 1x 20000 € makes a marginal difference in the overall composition (due to the ETF composition with/without EMs).
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@MoneyISnotREAL This could also be avoided with a custody account transfer :)
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@Alpalaka How so? The cost price should also be transferred.
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@Gernhard_Reinholzen
Whether I now put 1/2 of my investment amount into a new ETF or transfer 1/2 and sell the other half (fifo when transferring a custody account) does not matter in my opinion.
Of course, the method described above also works and is the easiest for sums >> €100,000 :)
Whether I now put 1/2 of my investment amount into a new ETF or transfer 1/2 and sell the other half (fifo when transferring a custody account) does not matter in my opinion.
Of course, the method described above also works and is the easiest for sums >> €100,000 :)
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@Alpalaka As far as I know, the average cost price should be transmitted for the transfer. There would therefore be no advantage to this procedure.
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@Gernhard_Reinholzen Nope, they also trade according to fifo
https://www.google.com/search?client=firefox-b-d&q=depot%C3%BCbertrag+fifo
I once had contact with ING on this: The purchase prices/purchase times are also taken over for securities account transfers
https://www.google.com/search?client=firefox-b-d&q=depot%C3%BCbertrag+fifo
I once had contact with ING on this: The purchase prices/purchase times are also taken over for securities account transfers
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•@Alpalaka Thank you. Learned something new again 👍.
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•@MoneyISnotREAL In Switzerland, fortunately - and hopefully for a long time to come - we don't have to pay tax on share profits, only on dividends.
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•@Alpalaka Also a possibility. There are various ways.
Whether and how you do it is up to you.
Thanks for your comment 👌
Whether and how you do it is up to you.
Thanks for your comment 👌
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