Dear Bogleheads,
I am so happy to have found this community. The amount and quality of information is impressive, as well as how generously people are sharing their knowledge and experience. Thank you for that.
I have been researching on the site for a while now, and now its time for my first post seeking your feedback on my investment plans.
Basic information
- Country of residence: Austria (Hungarian citizen)
- International lifestyle: I moved to Austria 2 years ago and plan to stay on the long run.
- Age: 41
- Desired asset allocation: as I am a new investor, with mid five-figures to invest, I was thinking of a 70% equity 30% bond asset allocation for the next 7-10 years or so, to accelerate a bit my wealth accumulation. Then do 60% stock/40% bond allocation till age 60, where I might switch to 50/50.
- I have no home bias.
Additional information
- Currency: EUR
- annual gross income: low 6 figures (incl 13+14 months + 15% bonus per annum)
- Emergency fund: currently 10k and building
- Debt: none
- Fixed costs: 60% of monthly income
- State pension: I will be eligible for state pension from Hungary and Austria (if I stay here for 15 years) as I understand
Current investments (in HUF)
This "portfolio" was not put together very consciously when I started to save money systematically, 11 years ago, definitely not according to the Boglehead principles. However I now plan to transform this into a proper low-cost and simple portfolio. Percentages show the percentage of all my savings together.
Retirement savings accounts :
1. 41% - "Private" retirement savings account (OTP Hungary) - growth portfolio (TER: 1.28%) - tax free if kept until age of pension (65).
- I plan to keep this account as the government makes it so complicated to close it (multiple years procedure and taxes), that its not worth the effort. With minimal contribution but with growth portfolio, it will hopefully grow over the years.
2. 24% - Metlife Private pension plans (Hungary, TER: 2.5%-5.5% depending on contract length)
Insurance investment accounts:
3. 25% - Metlife Life insurances (Hungary, TER: 2.5-9.5% depending on contract length)
4. 10% - Union Life insurance (Hungary, TER: 3.5%-6.5% depending on contract length)
Future investments
Now that I understand better the importance of having a low cost, simple portfolio, Im planning to close my Metlife and Union contracts, and transfer the money to low cost equity and bond funds.
I decided to use Flatex platform.
I plan to invest:
- 24% from my monthly income, plus yearly 50% (minimum) from my annual bonus.
Equity:
70% - SPDR MSCI ACWI IMI UCITs ETF USD unhedged Acc.
OR - iShares Core MSCI World UCITs ETF USD Acc.
These seem to offer the lowest cost available in Austria covering the entire market more or less.
Bond:
30% - Trackers Global Government Bond UCITS ETF 50C
OR - iShares Core Global Aggregate Bond ETF
Questions:
1. What is the best place to keep an emergency fund in Austria?
1. I was looking for some HYSA, however it is hard to find a good one. The banks offer really low interest rates. The best option I fund was Trade Republic with 3.75%, still insured to 100k, I guess the downside is that I have to take care of taxes for this. I want to keep it easy to access, still a bit separate from the rest of my savings. I would appreciate tips on this.
2. Does the 70/30 asset allocation sound like a good idea at my age, given that I still need to accumulate wealth for a solid foundation?
3. Do these funds sound good to start with, or would you recommend making it more diversified within each asset class?
1. Im thinking of dividing the the Equity investments into
- 50% SPDR MSCI ACWI IMI UCITs ETF USD unhedged Acc. OR iShares Core MSCI World UCITs ETF USD Acc.
- 50% iShares Core S&P 500 UCITS ETF (Acc) OR Vanguard S&P 500 UCITS ETF
4. For bonds the list of available low cost funds seem to be a bit limited in Austria. Would you recommend any other funds?
5. Not sure if its the right forum to ask, but can anyone recommend a Steuerberater in Austria?
Thank you in advance for any feedback, observations, advice.![:-)]( "Smile")
I am so happy to have found this community. The amount and quality of information is impressive, as well as how generously people are sharing their knowledge and experience. Thank you for that.
I have been researching on the site for a while now, and now its time for my first post seeking your feedback on my investment plans.
Basic information
- Country of residence: Austria (Hungarian citizen)
- International lifestyle: I moved to Austria 2 years ago and plan to stay on the long run.
- Age: 41
- Desired asset allocation: as I am a new investor, with mid five-figures to invest, I was thinking of a 70% equity 30% bond asset allocation for the next 7-10 years or so, to accelerate a bit my wealth accumulation. Then do 60% stock/40% bond allocation till age 60, where I might switch to 50/50.
- I have no home bias.
Additional information
- Currency: EUR
- annual gross income: low 6 figures (incl 13+14 months + 15% bonus per annum)
- Emergency fund: currently 10k and building
- Debt: none
- Fixed costs: 60% of monthly income
- State pension: I will be eligible for state pension from Hungary and Austria (if I stay here for 15 years) as I understand
Current investments (in HUF)
This "portfolio" was not put together very consciously when I started to save money systematically, 11 years ago, definitely not according to the Boglehead principles. However I now plan to transform this into a proper low-cost and simple portfolio. Percentages show the percentage of all my savings together.
Retirement savings accounts :
1. 41% - "Private" retirement savings account (OTP Hungary) - growth portfolio (TER: 1.28%) - tax free if kept until age of pension (65).
- I plan to keep this account as the government makes it so complicated to close it (multiple years procedure and taxes), that its not worth the effort. With minimal contribution but with growth portfolio, it will hopefully grow over the years.
2. 24% - Metlife Private pension plans (Hungary, TER: 2.5%-5.5% depending on contract length)
Insurance investment accounts:
3. 25% - Metlife Life insurances (Hungary, TER: 2.5-9.5% depending on contract length)
4. 10% - Union Life insurance (Hungary, TER: 3.5%-6.5% depending on contract length)
Future investments
Now that I understand better the importance of having a low cost, simple portfolio, Im planning to close my Metlife and Union contracts, and transfer the money to low cost equity and bond funds.
I decided to use Flatex platform.
I plan to invest:
- 24% from my monthly income, plus yearly 50% (minimum) from my annual bonus.
Equity:
70% - SPDR MSCI ACWI IMI UCITs ETF USD unhedged Acc.
OR - iShares Core MSCI World UCITs ETF USD Acc.
These seem to offer the lowest cost available in Austria covering the entire market more or less.
Bond:
30% - Trackers Global Government Bond UCITS ETF 50C
OR - iShares Core Global Aggregate Bond ETF
Questions:
1. What is the best place to keep an emergency fund in Austria?
1. I was looking for some HYSA, however it is hard to find a good one. The banks offer really low interest rates. The best option I fund was Trade Republic with 3.75%, still insured to 100k, I guess the downside is that I have to take care of taxes for this. I want to keep it easy to access, still a bit separate from the rest of my savings. I would appreciate tips on this.
2. Does the 70/30 asset allocation sound like a good idea at my age, given that I still need to accumulate wealth for a solid foundation?
3. Do these funds sound good to start with, or would you recommend making it more diversified within each asset class?
1. Im thinking of dividing the the Equity investments into
- 50% SPDR MSCI ACWI IMI UCITs ETF USD unhedged Acc. OR iShares Core MSCI World UCITs ETF USD Acc.
- 50% iShares Core S&P 500 UCITS ETF (Acc) OR Vanguard S&P 500 UCITS ETF
4. For bonds the list of available low cost funds seem to be a bit limited in Austria. Would you recommend any other funds?
5. Not sure if its the right forum to ask, but can anyone recommend a Steuerberater in Austria?
Thank you in advance for any feedback, observations, advice.
Statistics: Posted by CE_BogleNovice — Tue Aug 13, 2024 2:29 am — Replies 0 — Views 86