This post is going to overview the newest portfolio allocation and most recent updates. Despite monthly portfolio posts, which covers the monthly actions and considerations, this post explains long term goals and the reasoning of the allocation.
Currently, the long term goals are set a bit idealistic, as I am a student and I don‘t have a proper full-time job which would allow me to make more accurate calculations. Hopefully, by the end of this year, I will finish a degree and will find a full-time job, which will help to shape long-term goals more realistically. Currently, the monthly target is to invest at least 200€. In more detail, the monthly investments will be covered in the portfolio update posts.
The first row of the portfolio shows the long term portfolio allocation, if you would click on „current“ – it will show the most updated portfolio. Although the portfolio might seem complicated it is divided into five sections.
In this portfolio, I‘ve decided to include the home that I am planning to buy and live in. The first goal in this section is to buy a small apartment where I could start paying the mortgage and start saving for a second home. The main goal is to have one real estate to rent and another to live in.
Exchange Traded Funds (ETF)
Doughnut chart highlights the total amount of ETF‘s in the portfolio. The ETF‘s were chosen to safely and passively invest money without requirements of many monthly actions and considerations. All chosen ETF‘s are accumulating, which means that all dividends are invested back into ETF which assists in more stable growth. The IWDA and IMAE funds are chosen to create a popular alternative in Europe for VWRL as the Degiro is offering a free monthly purchase. The EMIM fund was chosen due to diversification and low total expense ratio (TER).
- (IWDA) iShares Core MSCI World UCITS ETF (Acc)
- (IMAE) iShares Core MSCI Europe UCITS ETF EUR (Acc)
- (EMIM) iShares Core MSCI EM IMI UCITS ETF
The main purpose of these dividend stocks is to have a regular income and to reinvest the money back to the portfolio. Whenever FIRE would be reached, it could also cover some expenses. Although picking stocks is riskier than investing in ETFs, it can increase faster growth and help to diversify a portfolio.
The key point of holding cash would be to create an emergency fund and have a safety net. Despite that, the chosen amount would cover all year expenses in case of a job loss. Additionally, it could be used for an investment opportunity.
The small amount of portfolio is allocated for alternative investments like cryptocurrencies, Peer-2-Peer lending, physical silver/gold, collectables. Although it has the same purposes of growth and diversification as dividend stocks, it is more concentrated to satisfy personal speculations in a rational manner.