( I posted this yesterday to r/pesonalfinance, but I did not get many advices, so I thought I might try it here)
Hello!
I have just received my first paycheck in my life and I will be able to save a decent amount of money every month from now on (hopefully).
I plan to get a mortgage asap (after probation period) as the rates are really low now (circa 1.5%). Repayments should account for 40% of my "saved" income (net income after living expenses).
The next 40% I plan to invest every month into ETFs.
I have already decided which broker I am going to use - low cost online broker providing ETF investing for free.
I have also decided which ETFs I am going to buy - VTI for US exposure and VXUS for the rest of the world, 50/50 split.
I am Europe based denominated in EUR, but I think 50/50 split is OK, is it?
I guess I do not have to care about currency hedging given the long-term character of the investment.
However, I was wondering whether it would make sense to split my ETFs between more issuers (e.g. use both Vanguard and Schwab)? How high is the counterparty risk in ETFs?
The rest (apprx. 20%) I will keep in cash and promo savings accounts offering high interest for smaller amounts. I also have some money on P2P lending platforms, but I do not want to increase my exposure there.
I would also like to ask your opinion on physical gold and Bitcoin? I am reluctant to invest in those as both have minimal intrinsic value. Gold is stable, but without returns. Bitcoin is going to Moon, but for how long will it last? Anyways, should I keep like 5% of portfolio in these alternative investments?
So to sum up:
Does it make sense diversify among ETF issuers like having both Vanguard and Schwab?
Does it make sense for European based investor to keep 50/50 on VTI and VXUS?
Does it make sense for EUR denominated investor to hegde his USD position in ETFs?
Does it make sense to hold gold and/or Bitcoin?
PS: No bonds and dividend stocks for me yet, I am just 24, but I plan to rebalance the portfolio as I get older. Thank you for any advice!
Submitted June 10, 2017 at 04:42AM by hama45 http://ift.tt/2s7t8Ly
