Hi,
Writing from a separate account to not link this discussions with my main one due to the amount of details I want to share.
I am struggling to figure out how to proceed with my financial planning going forward. I think I'm in a good place but feel I can always optimize further.
My family of 4 (me, wife, 2 small kids) is living in an apartment in Munich we bought ~3 years ago. The apartment is big enough for maybe 5 more years. We could stay 10 years if we have a common goal to push for (we are aligned on this mindset). Mortgage is 15 years fixed interest and after that we are done; monthly payment is 1150€. This is the only debt we have.
I'm earning ~8.000€ per month after taxes; my wife (currently in maternity leave) makes another ~2.000€ and we receive 600€ Kindergeld and Elterngeld. All in all; after maternity leave ~10.600€ after taxes.
We spend 3.500€ to 4.000€ per month during pandemic; without any travel. After pandemic; we will likely add 3 holidays a year at ~4.000€ each (i.e. +1.000€ monthly when annualized).
We invest monthly 2.000€ in Vanguard FTSE All World UCITS ETF (VGWL) and another 3.000€ into crypto currencies (that's how I've made most of my money).
We have ~25.000€ in a tech stock; ~30.000€ in crypto currencies and ~30.000€ in ETFs. We are also sitting on 123.000€ cash; this concerns me a bit.
From the cash; I'm planning to invest 50.000€ in cryptocurrencies in the next bear market cycle (if/when); 25.000€ into Vanguard ETF and keep the remaining 48.000€ in cash.
The questions I have:
- Does it make sense to sell the tech stock to convert it into Vanguard ETF?
- How much cash should I keep at hand? Any instrument to put it on where I could take it out if necessary (equivalent to bonds some years ago) but somehow compensate for inflation?
- Is there any optimization that you would do to our current setup?
- What if we want to buy a house in 7 years and need ~500.000€ extra? What would be the smartest way to go about it?
- Does it make sense to invest in real state for rental? Never been a fan of having debt; but cash in hand can be very inefficient.
Really appreciate any comment/advice you can give me.
Last but not least; I want to make clear that we appreciate the privileged position we are in and the luck (and hard work) we have gotten along the way. All we've got was made through hard work and a bit of smart investment; we didn't inherit neither were born rich.
Writing from a separate account to not link this discussions with my main one due to the amount of details I want to share.
I am struggling to figure out how to proceed with my financial planning going forward. I think I'm in a good place but feel I can always optimize further.
My family of 4 (me, wife, 2 small kids) is living in an apartment in Munich we bought ~3 years ago. The apartment is big enough for maybe 5 more years. We could stay 10 years if we have a common goal to push for (we are aligned on this mindset). Mortgage is 15 years fixed interest and after that we are done; monthly payment is 1150€. This is the only debt we have.
I'm earning ~8.000€ per month after taxes; my wife (currently in maternity leave) makes another ~2.000€ and we receive 600€ Kindergeld and Elterngeld. All in all; after maternity leave ~10.600€ after taxes.
We spend 3.500€ to 4.000€ per month during pandemic; without any travel. After pandemic; we will likely add 3 holidays a year at ~4.000€ each (i.e. +1.000€ monthly when annualized).
We invest monthly 2.000€ in Vanguard FTSE All World UCITS ETF (VGWL) and another 3.000€ into crypto currencies (that's how I've made most of my money).
We have ~25.000€ in a tech stock; ~30.000€ in crypto currencies and ~30.000€ in ETFs. We are also sitting on 123.000€ cash; this concerns me a bit.
From the cash; I'm planning to invest 50.000€ in cryptocurrencies in the next bear market cycle (if/when); 25.000€ into Vanguard ETF and keep the remaining 48.000€ in cash.
The questions I have:
- Does it make sense to sell the tech stock to convert it into Vanguard ETF?
- How much cash should I keep at hand? Any instrument to put it on where I could take it out if necessary (equivalent to bonds some years ago) but somehow compensate for inflation?
- Is there any optimization that you would do to our current setup?
- What if we want to buy a house in 7 years and need ~500.000€ extra? What would be the smartest way to go about it?
- Does it make sense to invest in real state for rental? Never been a fan of having debt; but cash in hand can be very inefficient.
Really appreciate any comment/advice you can give me.
Last but not least; I want to make clear that we appreciate the privileged position we are in and the luck (and hard work) we have gotten along the way. All we've got was made through hard work and a bit of smart investment; we didn't inherit neither were born rich.