(22 M) Take home €1,200 each month, expenses €300-350 per month. I try to keep my current account between €900-1200, as well as €500 in my Revolut vault for easy access. I am sending €55 p/w to my Savings Acc.
I own a car that is payed for, it's a small (131) car so tax, insurance and NCT are roughly €1.25K a year. I'm looking to try and make my money work for me and have come up with the plan I've outlined below. I am looking for second opinions, my Investing timeline is 8+ years. Deemed Disposable may make me sell my ETFs and use that towards a house (if the timing is right.) or I may keep them, no definite plan.
Currently Saved:
Prize Bonds: €3,900
Savings Acc: €7,000
Irish Life Map 5/6: €15,500
*Regret putting it here but can't withdraw without Penalty for 4 more years.*
Trading212: €2000
Investing Plan:
(VWCE) Vanguard FTSE All-World: €200 Per Month.
(MNKS, SMT, BRK.B) Investment Trusts: €30 Per Week. (€120 p/m)
14 Individual Stocks, DCAing: €50 Per Week. (€200 p/m)
@saachristian757 You're weakening your vanguard with your individual picks, like the other guy said I'd recommend taking your profit on most of them and pick a few to keep, around 10% of your portfolio in individual picks imo
@rebbeca I am pretty Bullish on the stocks that I am DCA in each week although you're right I should probably trim the 14 down. I've also got stop losses for any of the stocks that have given me a decent yield so if the market were to tank tomorrow I'd still be able to make some profit. Can you explain more how I am weakening the Vanguard with my individual Picks?
@saachristian757 Personally, 14 is a lot to keep a good track of. Even seasoned investors don't prefer to have that many stocks in their portfolio sometimes. If you're bullish about an industry, you're better off letting an ETF do the work of diversification for you.
Also, given that you're just 22, your risk profile can accommodate for individual picks. I wouldn't worry too much about "weakening" your position to a Vanguard at your age.
@onlybyhisgrace1 Appreciate the reply. You're right its a lot but I'm also trying to learn as I go, so if I make a couple of mistakes over the next few years I'll have plenty of time to recover. Some are long term plays aiming for 2025 and 3-4 are shorter term so I'll probably be dropping 3 or 4 in the coming months anyway.
EDIT: I know 2025 isn't long term when it comes to investing, just in comparison to the mid 2022 plays I have in mind.
@saachristian757 full disclosure ive only been on this shit like a year or 2, so i cant even get more specific about certain things than what im saying to you yet.
your vanguard already contains those stocks, essentially you are 'diluting' your VWCE by holding them. all well and good in a bull but when shit starts going down youre double dipping your losses, on the individual stock youre losing that money even harder than if it was just in your etf. yea yea ftse is outside US but you get me. my basic understanding of it anyway, theres definitely some in here who could be specific about it
had a look at those tickers and i would 100% close every position except goog disney nvidia personally
@rebbeca I think that each of the stocks (bar, DIS, FB, GOOGL, NVDA) have the potential to double in the next 2-5 years, each to their own I don't mind taking risks up until I am 27/28. It shouldn't hurt me too much in the grand scheme of things and could give me a healthy boost IF I manage to get a couple of home runs.
@saachristian757 I think ur right personally I think 15 stocks is a lot to own as well but looking at ur picks imo you've done a great job on what u own, I also share in ur opinion that some of this stocks are future winners and would disagree with the person telling u to sell ur stocks on one hand his telling u have too many stock to follow and on the other his telling u to buy more indexs which own 100s/1000s of stocks
@saachristian757 Just an FYI, I also invested in Irish life funds. Wasn't increasing from the charges. Closed it out and took the penalty. Invested in world etf and the gains exceeded the penalty within a year. Sometimes it's better to cut losses.
For a 22 year old, your savings is healthy enough if you're looking to invest for the next few years. You could consider investing what you're saving as well.
People are not gonna agree here but if your risk tolerance is high enough(and judging by your stock choices it is) then you could consider just buying some of the highest cap stocks over vwce. Removes deemed disposal requirement but you're not diversified.
Either way, markets are not logical anymore. Be prepared to lose a lot if things go tits up.
@smelaman Currently I'd be able to withdraw with a profit even with the penalties and tax so I think I will leave it for now, but I won't lie I have thought about doing that.
@saachristian757 Your strategy looks excellent and well though out, so I wouldn't have any concerns there.
Your income makes much more sense to focus on though. At the level you are at, increasing income is going to make a far great difference for less time investment than crafting a detailed investment strategy.
@cocacola10 I'm currently looking for an apprenticeship at the moment and finding it hard to come by so I completely agree more income is much better than interesting 60% of a low wage, I'm just trying to do the best I can at the moment.
@saachristian757 I'm very wary of anything on the markets at the moment given the rumblings of an impending crash, reverse repo at over 800b daily, inflation doing God knows what, potential subprime CMBS and the archegos fiasco
I've taken out profit and am considering some puts but I'm an idiot with a decent position in GME so I'd listen to someone else lol.
@ancientpathshepherdess Yeah I have 2K of my savings earmarked in case there is a market crash in the next year or so, but I'm willing to ride out any dip as I've set stop losses on 35% of my Portfolio.
@zotis Yeah I agree but I see the EV sector taking off in the next few years so I'm going to hold. I'm young if I make a mistake and throw 2K away on them so be it.
Do you have any advice on how I could diversify? What would make it a more balanced stock portfolio.
@startupchristian Yeah it's shit but unfortunately it's something we have to deal with. I try and look at it more as keeping 59% of the profit so I don't feel so bad. Still better than a bank, (and why its not 80% of my Portfolio.)
@saachristian757 I avoid ETFs completely and just use diversified investment trusts. I plan to hold for 25 years at least and paying deemed disposal three times is unacceptable to me.
