Help with investing

[sonom]

I have inherited 150,000e which I do not need any time soon.

I intend to hold and to have regular contribution of at least 100e for next 40y.

I have asked for help on Croatian r/financije sub, and this is only "proper" answer I got,

150,000.00€

Instrument
percentage
price

ETF
60%
90,000€

Share
30%
45,000€

Crypto
5%
7,500€

Cash
5%
7,500€

ETF 90,000€

Name
percentage
price
qty

VWCE
60%
102€
529

IUSN
15%
6.2€
2109

IS3N
15%
30.15
448

3FNG[sup]*[/sup]
10%
5.4€
1667

3FNG is ETC

Shares 45,000€

Name
qty
dividends
year dividend

AAPL
25
0.51%
22.7

MSFT
15
0.82%
38.75

GOOG
1
x
x

AMZN
2
x
x

INTC
57
2.79%
83.09

MBIN
155
0.98%
44.05

V
20
0.69%
31.46

WM
30
1.64%
76.75

BMY
80
2.98%
135.89

SOFI
110
x
x

EDIT
250
x
x

Ukupno
44,932.75€
x
432.69$

All stocks at 10% except EDIT & SOFI, 5% each

Didn't valculated currency exchange, so it is all approx.

Dividends would go in reinvestment

Crypto 7,500€

Name
percentage
price

BTC
30%
2,250€

ETH
30%
2,250€

Monero
30%
2,250€

Rest
10%
750€

I have appointment with financial advisor, but I'm sceptical towards them, I think that in Croatia they are glorified salesman and will probably lean towards their funds

Is this good start, and should I lean towards something like this? Or maybe something else.

Many Thanks

 

[kaytiedid]

@sonom

1. Build an emergency fund
2. Invest the rest if not needed into 85% VWCE + 15% IUSN
3. Handpicking stocks is extremely dangerous, better focus on ETFs.

 

[resjudicata]

@sonom Dump everything on VWCE at once or make a DCA plan after an initial lump sum for peace of mind. Crypto for 40y horizon is literally gambling. Stock picking within this investment horizon is extremely dangerous and you 'll end up trading. Cash is ok for your emergency fund/buy crashes. As for IUSN, i don't feel like 10-15% will move the needle that much (will be like 15.000€ initially plus 10-15€ every month), its TER is a bit high and i wouldn't seek more volatility, expenses and overdiversification in a 100% stock well-diversified portfolio. Keep it boring, keep it simple.

 

[confusedgirl98]

@sonom Keep it simple. 1-3 ETFs + some cash (emergency fund, something like half a year of salary) should be good enough.

 

[james2333]

@sonom Honestly you risk a lot of overlapping and I don't think you should focus on crypto at all.

If you have ETFs shares are pointless, they are just less diversified ETFs. Cash would be a "safe" that will loose value with inflation and crypto would be a highly unstable element with an arbitrary value.

You have to understand those tools and why you pick what. Honestly I would just go VWCE and load the money over 2 years equally spaced at intervals if you know nothing of investing. VWCE is highly diversified, maybe a little too focused on US company.

I have a somewhat equal split S&P/Europe 600/Emerging Markets.

You don't want to put everything at once simply because the market fluctuates and you want to avoid buying at a maximum. The time splitting ensures you buy more shares when the price is low and fewer when it's high thus resulting is better long term behaviour. And I said 2 years as totally arbitrary measure to ensure a reduction of the impact of fluctuations due to geopolitical instability.

 

[lissette007]

@james2333 Cash is so that you can take advantage of market dips when things like Covid or wars happen, don’t forget that inflation is controlled by increases in interest rates which hit stocks as discount rates used in valuation increase so going all in on stock isn’t necessarily the right play depending on your situation

Op: Diversifying is always good and weighting depends on your age, health and risk tolerance. I wouldn’t rule out bonds, real estate or commodities if I were you as a part of your portfolio, the latter two of three not a bad bet in my opinion given coming interest rate hikes and commodity cycles

 

[james2333]

@lissette007 it varies, with a lower sum I would normally agree, but with 150k the risk of not being in the bottom yet and throwing too much cash too fast before a crash is not something I would want to deal with. You don't really want to be in a situation where you have more cash than common sense.

 

[billg]

@james2333

crypto would be a highly unstable element with an arbitrary value

Value is subjective. Arbitrary doesn't mean anything.

 

[veryconservative]

@sonom What you're doing is mental masturbation.

Fill up your emergency fund
Then invest the rest in VWCE and or some bonds/cash

 

[xianghua]

@sonom I was wondering why would you oversize your individual shares by buying an unknown company Ukupno in excess of 45k, then I figured it must be “Total” in Croatian