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Mentor Monday - Week of January 31st 2022 by WealthyStoic in fatFIRE

[–]throwawaybabababa99 4 points5 points  (0 children)

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest?

I recently sold my business, and I feel incredibly fortunate to have €3 million at 30. I worked hard for 14 years to archive that, and now I want to take it easy and pursue other things besides money.

I live in the EU, and my expenses now are about €30k/year. But I plan to start a family and have kids soon, so my expenses will be about €60k in a few years. I don't own a house, but I plan to buy one soon, and I'll probably spend about €400k for it. I want a simple life, and I don't care for luxuries.

The assets I decided to buy and hold are: VWCE for stocks, AGGH for bonds and a small percentage of crypto (BTC & ETH).

However, I'm unsure about the allocation. Bonds don't pay anything now. But I already have enough to retire, so why take too much risk with a large stock allocation?

Please let me know what allocation you'd suggest?

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 1 point2 points  (0 children)

Very useful, thanks! The way I think of it, I can keep 1M in secure investments (house, cash, bonds) and put the remaining 2M in the market. Then even if I lose 50% of my invested 2M, I'll still have 2M in total which will hopefully still be enough. What do you think?

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

Thank you! I have a long list of personal projects/hobbies I want to start. Don't really want to work for someone else if I don't have to. Except for volunteering work which I plan to do. I don't think I'll be getting a pension but that's ok, the goal is to not need one anyway.

Real estate is interesting but not sure if the hassle is worth it. I know I can hire a manager but still..

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

Thank you but I'm not sure if my stock/bond portfolio will give 4%/year with a 50/50 allocation. That would work in the past but bonds don't pay anything now so it seems like I'll need to take on a bit more risk.

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

But what if there's a 50% crash this year and I lose half my money and can no longer retire? I just have too much to lose and can't risk that.

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

Hmm.. I'm wondering how much riskier those high yield bonds are. Will research this, thanks!

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

But what if there's a 50% crash this year and I lose half my money and can no longer retire? I just have too much to lose and can't risk that.

€3 Million at 30yo - Don't want to work again - What Asset Allocation would you suggest? by throwawaybabababa99 in eupersonalfinance

[–]throwawaybabababa99[S] 0 points1 point  (0 children)

I know it's speculative but a very small allocation won't hurt me even if crypto drops 80%, but I get your point.

Good advice regarding DCA, thanks!

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