Hello investors
Could I ask for some advice? I would like to cancel my daughter's building savings account and move the funds into ETFs, because the account maintenance fees and the 2,000 CZK state contribution seem meagre compared to what they could earn in indices over the next 13 years. I opened it back when I knew nothing about investing and I don't want to take on greater risk like in my own portfolio.
I'm wondering how best to set this up — I was thinking of splitting it into thirds: $BRK-A $CSPX.L and $CNDX.L I want it to be as safe and worry-free as possible, ideally not touching it for the entire period. A return of around 8–12% year-on-year would be enough for me, but if it performs weaker for 1–2 years I wouldn't mind.
I know this year isn't the best for investing in indices and is more about picking individual stocks. I'm also not sure whether to do it now or wait for a bigger market correction.
So I'm asking this community for opinions and possibly some recommendations — I'd appreciate any comment.
Thank you all in advance and have a nice rest of the day
70% to $VWCE.DE and 30% to $AVWS. Done. It has everything someone could want and is also the most diversified in terms of equity holdings.
Statistics say it's best to invest the entire amount immediately, but of course that carries risks, and most people, including me, invest regularly and gradually.
A quality index will almost certainly deliver better returns than any building savings account. The question is how much volatility you’re willing to take on. Thirteen years is a horizon where the technology sector is also OK. There are other great ideas in the comments. You might also consider, if you want broad diversification, the MSCI All-World.
I'd move the money into $BRK-B and $^GSPC. If you want greater diversification and performance, you could also add an ETF in the energy sector. I'd start investing the money now and then continue with regular purchases.
When a colleague asked me for advice about where to put his money, I opened a broker account for him and "shoved" it into the first accumulating euro-denominated EM ETF that came to hand. Since then it’s returned about 61% over roughly three years, but because he hadn’t put in much, it didn’t earn much in absolute terms, and now he’s just speculating whether he could invest "like me" and won’t accept my "no" as an answer—there isn’t a trace of gratitude—so I decided I’ll never do anything like that again.
With this setup it’s currently quite focused on US tech, so if you want the highest possible return and don’t mind higher volatility, it might not be a bad choice over a 13-year horizon. You have BRK.B as a defensive holding for potential downturns, so why not. In any case, I think that almost any decent diversified ETF would be a better choice than the building savings account.