My strategy & help needed: how to invest 190k with a horizon of 3-6 years + 2-4k a month in the long term

[coppellia]

Hi everyone [throw away account 'cause I'm mad for privacy ]

Our story

29f/33m, business owners of a small company (we do not have any employee)We have been able to save an average of 7.5k per month over the past 12 months due to "bull market" for our business, may drop and stabilize on 2-4k month savings over the next few years due to market decrease and a baby on the way.

Our net worth

• 235k total NW shared
  • 10k invested in DEGIRO VWCE
  • 225k in cash

Why in cash? We wanted to buy house without mortgage in 2024 but decided to wait 3 to 6 years because we are not sure about the area to buy in.

Our strategy

We want to:

• invest 190k with a horizon of 3-6 years
• 25k as a safe found
• 550€/month in a private retirement fund (that we'll cover an extra 1000€/month each on top of our state pension when we will retire)
• Once we maxed out the private pension, we have 1.5k to 3.5k to invest in a PAC composed as follows:
  • 40% VWCE
  • 20% Long Term Bonds
  • 20% Short Term Bonds
  • 20% Gold

Questions and doubts

• What do you think of the overall strategy?
• How to invested 190k with a horizon of 3-6 years. The only idea is an inflation protected bond but our state demand 26% taxes on capital gain.

Thanks for reading. Have a good one!

[edit: better spacing]

 

[mikethps%E2%80%A0]

@coppellia Hey man!

Any particular reason you want to buy your house without getting a loan? If you manage to get a loan at a good rate, it's usually pretty beneficial to get one.

Say you get a loan at 1.5% and leave the money it freed up invested in the stock market, the odds are in your favor that in 15-20 years you'll come out ahead.

 

[coppellia]

@mikethps%E2%80%A0

e are sometimes options in specific countries that can be good for a short term interval like 3 years.

I know It makes little financial sense, but I don't like being in debt. I prefer to make a slightly worse financial decision but live life with no anxiety.

 

[hailsatan420]

@coppellia It would be good to know the country, because there are sometimes options in specific countries that can be good for a short term interval like 3 years.

 

[coppellia]

@hailsatan420 Italy sir

 

[jayjaynp]

@hailsatan420 Somewhere between Switzerland and Malta, bound countries excluded.

 

[hailsatan420]

@jayjaynp Mate did you forget to switch between accounts? If yes, delete this comment. Otherwise you have identified your main account

 

[jayjaynp]

@hailsatan420 Eh, I wish I had money enough to justify anon accounts.

I just read the similar message from anOP on our Italian sub.

Edit: add link

 

[buzzy204]

@coppellia did you think about putting anything in HYSA?

 

[mikethps%E2%80%A0]

@coppellia H

 

[avocatdudiable]

@coppellia Are you going to trust 190K on a sub?

If you have a business, my advice is to get a tax advisor that optimises your company taxes AND helps you out with your personal investments.

In my case, I reduced my salary drastically (to 10% of my company net profit), and doing so, my taxesm and now I have a mortage with my company, so I can take my money slowly.

This means that if the day of tomorrow I stop earning crazy money, I will have a massive pool of money from where to take out money, rather than take it now and pay a stupid tax on it.

 

[coppellia]

@avocatdudiable Just asking for multiple adivice. I'm also in contact with a independent advisor.

 

[englishcatholic17]

@coppellia Why are so keen on investing such a big portion in bonds and gold? Go full VWCE if you are thinking about investing long-term.

 

[coppellia]

@englishcatholic17

y company net profit), and doing so, my taxesm and now I have a mortage with my company, so I can take my money slowly.

Diversification?

 

[musicbazzar]

@coppellia For the 190k, I would do 20% global stocks, 60% global bonds hedged to your currency and 20% cash in a savings account/term account/money market fund. 10 - 20% of the bond allocation could be inflation linked bonds or short term bonds, to lessen duration risk.

Do you have a say in the PAC asset allocation? 20% gold is generally too much, and only 40% stocks is in general too little.

Finally consider taking a mortgage for half the value of the real estate, or even less, as an inflation hedge. It will also let you invest a larger part of your retirement nest more aggressively.

 

[owretchedguy07]

@coppellia Wondering the reasoning behind 25k to be left in cash...

 

[coppellia]

@owretchedguy07 Quick access in case of need? Ex. car breaks, dental emergency etc

 

[mikebigg]

@coppellia In my opinion you should not give all you money for buying a house. I am in the same position as you. You should take a loan if you find 25-30 years for max 4% interest and the rest invest it in an etf like nasdaq100/sp500/sp500 IT.

The only thing you should is to avoid thinking the debt. You will have more money in 20 years if you take a loan and you do not give all your money to a new house. Even a billionaire would take a loan for a reason