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Congratulations. Beautiful execution.
What are you investing the 40k in?
How long did you need for the 100k and at what savings rate?
I'm 35 and unfortunately have "only" 27k (call money and deposit together) and have a savings rate of € 2200 (€ 1100 deposit and € 1100 call money). The daily allowance was a compromise with my wife 😅 I hope to have 100k in total assets in 2 years.
Is it even possible to calculate like this, i.e. overnight money and custody account together? Compound interest is only in the custody account, but it's still my total assets. Worth considering.
Best regards
What are you investing the 40k in?
How long did you need for the 100k and at what savings rate?
I'm 35 and unfortunately have "only" 27k (call money and deposit together) and have a savings rate of € 2200 (€ 1100 deposit and € 1100 call money). The daily allowance was a compromise with my wife 😅 I hope to have 100k in total assets in 2 years.
Is it even possible to calculate like this, i.e. overnight money and custody account together? Compound interest is only in the custody account, but it's still my total assets. Worth considering.
Best regards
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@Joris Strange compromise. Why?
Is the call money at least at a high interest rate or at 0% at the local savings bank?
Is the call money at least at a high interest rate or at 0% at the local savings bank?
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@giraffidae My wife likes security and learned from her father that shares are stupid. Savings accounts are safe. Maybe it used to be where there was still interest on it, back then 😅 compromise. Yes, it's 3.75% on the call money
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@Joris I will continue to add to the quality stocks in my portfolio. This includes Microsoft, Visa, John Deere, Stryker, Linde, etc. I mainly invest in software and healthcare. I am also investing in a few growth-oriented stocks via a savings plan.
Savings rate is hard to say. I opened the custody account in 2020 and since then have always invested an average of €1000 per month in shares (48 months x €1000). However, I started looking at shares in theory back in 2012 and have already started saving since then. So you could say that I built up the cash from 2012-2020 (96 months x €500) and the equity portfolio from 2020-2024.
So if you want to make a direct comparison, you now have a savings rate twice as high as mine and four times as high as mine in my early 20s.
And yes, you can definitely calculate overnight money and your custody account together in this way. Of course, the call money also generates compound interest, and that's not just in the custody account. However, we'll have to see how things look after the interest rate cuts.
Savings rate is hard to say. I opened the custody account in 2020 and since then have always invested an average of €1000 per month in shares (48 months x €1000). However, I started looking at shares in theory back in 2012 and have already started saving since then. So you could say that I built up the cash from 2012-2020 (96 months x €500) and the equity portfolio from 2020-2024.
So if you want to make a direct comparison, you now have a savings rate twice as high as mine and four times as high as mine in my early 20s.
And yes, you can definitely calculate overnight money and your custody account together in this way. Of course, the call money also generates compound interest, and that's not just in the custody account. However, we'll have to see how things look after the interest rate cuts.
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@Joris What is the long-term plan with the call money? Is at least one expense (property?) planned? On the one hand, only 100k is secured in the account, and on the other hand, it makes no sense at all to leave more than 6-8 months' worth in the account.
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@KevinC Yes, there is. And that is risk management. You can either fill your portfolio with defensive assets or do what I do with cash and build up a riskier portfolio. The nest egg is simply the nest egg. But you also need a little bit of powder to shoot if the market takes a significant dive.
But overall, I agree with you. You shouldn't put too much money in call money in the long term. Especially not if interest rates fall again soon.
But overall, I agree with you. You shouldn't put too much money in call money in the long term. Especially not if interest rates fall again soon.
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@KevinC The €1100 in overnight money is a nest egg, for vacations, possibly a new car at some point and we'll save up equity. We'll either finance it ourselves at some point or take over a house from my parents or my wife's father. So hopefully it will take a little longer, but I have 2 siblings and my wife has a sister. We want to save up enough so that we can pay off the "inheritance" no matter which house we take over. So if we don't buy a house ourselves, which is very difficult at the moment, we'll take one of them over. My wife's sister doesn't want a house and my siblings have houses and they are happy to have new money.
That's why it's so high, because we don't want to go into the deposit and we have to pump a lot of money into it.
If interest rates drop, I'll have to look around for alternatives.
Or I could just pay for everything with Bitcoin.
So one of two scenarios. 😂
That's why it's so high, because we don't want to go into the deposit and we have to pump a lot of money into it.
If interest rates drop, I'll have to look around for alternatives.
Or I could just pay for everything with Bitcoin.
So one of two scenarios. 😂
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@Soprano sounds good. Good luck for the future.
Do you think there will be no more interest on call money at some point?
When that happens, interest rates on building loans will have to go down again and then we'll have equity for it. We will see.
Do you think there will be no more interest on call money at some point?
When that happens, interest rates on building loans will have to go down again and then we'll have equity for it. We will see.
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@Soprano is definitely one way of doing it. Personally, I'm almost always fully invested - apart from my nest egg, which doesn't count as an asset for me either.
I now have a solid cash flow from distributions. If I don't see any options (it's difficult at the moment), I either invest in ETFs (in addition to the savings plan) or wait a few months until opportunities arise again. That's also a few euros. But I probably won't invest more than 10% of my portfolio value (with a downward trend).
However, I also tend to invest defensively and do very well with it. Where I once took a higher risk (MPT), I'm 60% behind in the share price, so the dividend doesn't save anything 😬
I now have a solid cash flow from distributions. If I don't see any options (it's difficult at the moment), I either invest in ETFs (in addition to the savings plan) or wait a few months until opportunities arise again. That's also a few euros. But I probably won't invest more than 10% of my portfolio value (with a downward trend).
However, I also tend to invest defensively and do very well with it. Where I once took a higher risk (MPT), I'm 60% behind in the share price, so the dividend doesn't save anything 😬
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@Joris why should you only benefit from the interest rate in the custody account, please explain that
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@KevinC at 3.75 %, overnight money is just as good as any dividend-paying share
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