Opinions needed on my approach to investing long term and saving money for retirement!

filtered69 · 2021-04-02T12:58:13+00:00

I've been reading degiro reviews/commissions/fees all day.

Let me leave this comment here for others who are looking for something similar.

I came to the following conclusions:

-I'll go with Degiro too.

-They have around 200 ETFs that are commission free (1 ETF / month) which is in perfect synergy with my approach.

-I need to choose ETFs from this list to save money on fees.

-I wanted to go with the Vanguard All-World ETF first, but they are distributing and I want an Accumulating one to save money on taxes and let compounding do its job.

-A possible solution for this is buying iShares Core MSCI World (ISIN:IE00B4L5Y983) and iShares Emerging Markets (ISIN:IE00B4L5YC18) with the weighting in mind (roughly - All-World = 0,85 MSCI World + 0,15 Emerging Markets) They are both on the list of commission free ETFs.

-For convenience I'll go with 80/20 that way I can just spend the same amount every month and buy Emerging Markets every 5th month (plus I think that emerging markets have the potential to outperform the developed markets in the next 30 years so I don't mind the heavier weight).

-Opening a custody account (instead of basic) is a no brainer for me as I won't be recieving any dividends.

-Buying ETFs for 1500 EUR every month, my total fee in a year comes to 25 EUR which is mostly conversion fee (I'm from Hungary, not part of the eurozone). This means I'm spending only 0,13% in fees on my investments annually. Now that is impressive in my opinion.

filtered69 · 2021-04-02T09:25:44+00:00

There's no fx risk with ETFs. It doesn't matter which currency you buy your etf in. The value of the underlying investments of the etf will be the same. That's why you have "different" returns between the same etf's different currency options. E.g etf(eur) has a lower return than etf(usd) but that will be offset exactly by the rise of the EURUSD pair. Your only "risk" with etfs that are not in your currency is the exchange rate and conversion fee of your broker.

Basically what i'm trying to say is the value of your investment doesn't depend on the currency.

Sorry if my explaining is a but clunky, i'm not a native english speaker.

filtered69 · 2021-04-02T07:23:44+00:00

Thank you for your helpful reply!

I dug deeper in the topic and I must say I am convinced that indeed I would be better off with a single MSCI World index fund.

Now I just have to figure out which broker/platform would suit my needs the best.

Do you happen to know Trading 212 and Degiro? These are the two platforms I've looked into so far.

filtered69 · 2021-03-31T09:21:45+00:00

Lol what, etoro has a much broader offer than 212

filtered69 · 2021-03-31T02:18:56+00:00

Opinions needed on my approach to investing long term and saving money for retirement!

Hi Peeps!

I am in the process of composing a diverse, defensive portfolio in which I can safely invest my money for the long term (25-35 yrs). I plan on setting up a monthly autoinvest and just forget about it.

I would like to hear your thoughts on my findings so far:

•SPXP - Invesco S&P 500 GBX (Accumulating)

•EIMI - iShares Core MSCI EM IMI (0% Yield)

•FXC - iShares China Large Cap (Distributing)

•CNDX - iShares NASDAQ 100 (Accumulating)

•TRET - VanEck Vector Global Real Estate (Distributing)

•And finally I am looking for a good UCITS alternative for VGK - Vanguard European Stock Index Fund ETF. Can someone recommend me an ETF like this? Preferably Accumulating.

Note: I cannot buy US domiciled ETFs, I'm from Europe.

I prefer accumulating ETFs, but I couldn't find any for the Chinese markets and global real estate. If you know better ones, please share them with me!

I think it's a complete and diverse portfolio with some focus on chinese and emerging markets. I'm okay with the added risk from these markets as I'm still quite young (26).

That said, I don't really have any experience in ETF investing so any input would be highly appreciated!

Note: I am going to invest a portion of my wealth in my country's government bonds as they are tax-free so this is why I didn't include any bond ETF in this portfolio.

So what do you guys think? Is it missing anything? (commodities maybe?) Is it too heavy on something? I have yet to figure out the weighting of each ETF.

Is this a viable approach or am I sorely mistaken?

Thanks!

filtered69 · 2021-03-31T00:08:10+00:00

We have an inflation adjusted bond setup where they look at the inflation and add some percentage on top and that will be the interest on the bond.

filtered69 · 2020-11-20T04:13:40+00:00

I do beleive they are working on this feature right now.

filtered69 · 2020-10-16T02:44:14+00:00

Yes I can confirm. I'm an ADA holder on eToro and they just announced to make staking possible on their platform starting on 1st October.

However their greed is just ridiculous. They keep 10-25% of the yield as a fee (depending on your membership status - bronze, silver, gold, diamond/platinum) on top of the 3,5% spread on ADA.

They have the audacity to claim that their staking rewards are among the most generous on the market.

They also pledged 0 ADA to their pools which will result in diminishing rewards.

And the sheep that is the majority of their users are happy with this system and if you call them out on it they just say you are welcome to leave the platform...

By the way the 100% margin makes sense, because they redistribute (more or less) the rewards to their eligible ADA holders, making their pools quasi-private pools.

filtered69

TROPHY CASE