How to Invest 1.000€ to 1 Million € in 2024
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- Опубликовано: 7 июн 2024
- Should you be using different investment strategies based on the amount you're investing?
🇪🇺 Top ETF Broker + 4% interest: angelo.fi/tr
You may be wondering if you should add more ETFs and other asset classes as your portfolio grows from 1.000 to 10.000, 100.000 or even a million euros. Here's what I would do at each step based on my 7-year ETF investing journey and where my portfolio stands in 2024!
My Favorite Brokers (ETFs, Stocks and Bonds):
🇪🇺 Interactive Brokers: angelo.fi/ibkr
🇪🇺 Trade Republic (4% interest p.a.): angelo.fi/trep
🇩🇪🇦🇹 Easiest for Germany & Austria: angelo.fi/etfs
👉 Compare ETFs & Stocks: angelo.fi/comp
My Top 3 in P2P Lending:
📌 Esketit (0.5% bonus): angelo.fi/esketit
📌 Mintos: angelo.fi/mintos
📌 Viainvest (1% bonus): angelo.fi/viainvest
💰 All P2P deals & conditions: angelo.fi/all
Where I Buy Bitcoin & Ethereum:
⚡ Bitvavo (10€ bonus): angelo.fi/bit
I Hold My Emergency Fund (Cash) Here:
🇪🇺 4% interest p.a. (€100K deposit guarantee!): angelo.fi/save
📈 What I Use to Track my ETFs: angelo.fi/getq
🏠 All my investments & accounts: angelo.fi/tools
Video mentions:
🎥 How To Profit From High Interest Rates in 2024: • How To Profit From Hig...
🎥 The Best World ETF To Hold Forever: • The Best World ETF To ...
🎥 Why the first 100.000€ is so hard (and the next easy): • Why the first 100.000€...
🎥 7 Years of ETF Investing - What I Learned: • 7 Years of ETF Investi...
🎥 ETF Investing Playlist: • ETF Investing in Europe
00:00 Investment time horizon and risk management
01:05 1.000€ - 10.000€ portfolio
03:01 10.000€ - 100.000€ portfolio
04:03 Core-Satellite investment strategy
05:18 100.000€ - 1 Million € Portfolio
07:29 Don't forget your emergency fund!
08:34 What I would do after 7 years investing in ETFs
ETFs mentioned (ticker in brackets):
📌 Vanguard FTSE All-World ETF Acc. (VWCE)
📌 SPDR MSCI ACWI IMI Acc. (SPYI)
📌 iShares MSCI ACWI Acc. (IUSQ)
📌 Vanguard FTSE Developed World Acc. (VHVE or VGVF)
📌 SPDR MSCI World Acc. (SPPW)
📌 iShares MSCI World Small Cap Acc. (IUSN)
📌 Lyxor Core STOXX Europe 600 Acc. (MEUD or LYP6)
📌 HSBC FTSE EPRA NAREIT Developed Dis. (HPRD)
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Some of the links are affiliate links, which help support me and the RUclips channel. Still, none of the links are sponsored.
Disclaimer: I am only sharing my own experience. I'm not a financial advisor and you should always do your own research and due diligence before investing. Investing involves risk of losses.
Are you planning to change strategy over time?
🇪🇺ETFs + 4% Interest: angelo.fi/tr
🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr
👉Compare ETFs: angelo.fi/comp
📌Esketit (P2P): angelo.fi/esk
📌Mintos (P2P): angelo.fi/min
⚡Where I buy crypto: angelo.fi/bit
💶4% interest savings account: angelo.fi/save
The ETFs I mentioned (incl. ticker symbols) are in the video description!
Great video. I just found your channel. So easy to understand the way you explain things. No fluff, no BS. You gained a new sub 🎉😊
Angelo. Really love your channel - was looking for a Euro Centric investment channel and you explain with such clarity. Thanks for your efforts!
Love the clarity, as always Angelo! Would you consider making a video about ETFs that don't have exposure to oil & gas? Would be super interesting to know your thoughts on ETFs for the growing number of investors like me who want to decarbonise their portfolios. Liebe Grüße aus dem 2. Bezirk :)
Enjoyinging your channel! I've setup a Trade Republic account using the link you provided. I also have a Degiro account with some shares that are doing well. I'm curious if you think ETFs are a good option for an Irish resident, given the tax situation (high)? Is it better to just stick to individual stocks? Thank you!
Hi Angelo, great video!
I'm beginning to organize my personal investing strategy and was wondering if you have a recommendation for a good tax accountant in Vienna to help me do things the right way from start.
Keep up the work with the videos!
Cheers
Thanks for the advice Angelo. Clean, transparent, no bs, no "buy this one because I guarantee it will go to the moon" or other snake-oil type of advice. I only wish I knew 10 years ago what I know now and that I saw your videos around that time
That means a lot, thank you! 🙏
Warum erfahr ich erst jetzt von dir!?? 😃
Aber besser spät als nie!
Grüße aus Wien 15
What happens to a P2P account or broker account if the account holder passes away? Can you make video about this important things of inheritance ?
Do you happen to have recommendations for a fianance / investment advisors in Hungary :) ? Thanks!
Thanks for the video! 😄
Thank you Angelo, it would be nice to have an idea of what the difference in volatility between inverting 1 million today or split it in 60 (12months * 5years) different contributions of 16.6k (1 million/60 months). Just to maximice the relation between risk/return
My pleasure! Sadly that wouldn't make much sense, since I can't predict the future and every 5 year period is different. But you can do some backtests here: curvo.eu/backtest/en
Thank you, Angelo. Your content is so much valuable. I have one question. Would you be so kind to share your thoughts regarding semiconductor ETFs? Are they good for long-term investing or it's just hype and speculation? Have you ever thought about investing in them?
Thank you Alexei! It's a bet on a specific sector that's hyped up right now, something I don't like doing myself. Always ask yourself if you'd be willing to hold it over decades, even if the hype were to die down in a few years. If the answer is no, I would skip it
@@AngeloColomboFi thank you!
Good content! Im also using a single ETF strategy ro keep rhings simple and managevle over the years. Have you thought about protecting large downturns in the market so that you can profit from these rarther than ride them out? I am considering virtu financial or flow traders which value should go up when markets have high volatility.
Thank you! No, downside protection always comes at a cost (eg. lower/no returns in case the market goes up) and honestly, I don't think it's worth my time. It would only make sense if I knew when the market was about to drop and when it's going up, which neither me or anyone else can predict.
Me and my wife moving this Year to Austria also. How does taxes for stocks works there? Thanks and keep up a good work, great informative videos 😊
Hi Tomi, 27,5% on capital gains and dividends. If you're wondering about ETFs, shoot me an email: angelo.fi/mail
With the VWCE accumulating etf when do they accumulate the dividends within the etf, is it once a year?
Throughout the entire year, at whichever time the thousands of companies within pay out dividends, which the fund reinvests into more shares of the stocks, raising the ETF share value by that amount
Hi, can you make a video about investment taxes in austria? What are the tricks...
Send me an email, I'd be happy to send you info on how ETF taxes work at least: angelo.fi/mail
Grazie mille! Great video as always 🤑
Hey Angelo, love your videos! Wanted to ask you about the Trade Republic 4%. Although TR have said they deposit cash reserves into an account with their partner banks - which is insured up to 100k, what would happen if Trade Republic were to go under? I see a lot of people mention how it's insured for up to 100k with the Deposit Guarantee Scheme but when speaking to others about it they mention my money may not actually be safe under that scheme unless its in a German bank account under my name? Would only Trade Republic be protected under this and not me necessarily? Interested if you have any insight on this.
Hi Lachlan,
If Trade Republic goes under, the €100K protection still applies for each investor individually. We're talking about a strictly regulated German broker (and now licensed bank as well). The German regulator BaFin would never allow them to state it on their website or app otherwise and it has already been confirmed by the BaFin as well via Email that each investor is protected up to 100K.
@AngeloColomboFi thanks for another informative video. I’d like to heard your thoughts on a three ETFs portfolio composed of: MSCI All World (30%), S&P500 (50%), and 20% Growth ETF like EQQQ, I believe it can give you a good exposure to the growth ETFs while mitigate the risk through mid and low risk ETFs like S&P and MSCI all world, do you see any drawbacks?
My pleasure! Your strategy doesn't make much sense to me to be honest. By combining those three in those allocations, you're 91% invested in the US, heavily over-weighing tech stocks. At that point you might as well just buy the S&P 500 in my opinion.
You are right. Im planning to have a global low cost etf like MSCI ACWI IMI as the biggest part of my portfolio (70%), and 30% for either EQQQ or S&P, does that make it more a more balanced portfolio?
@@ebrahimkargar9092It makes it a US-overweight portfolio. If that is what you're after then it's good, otherwise just going 100% MSCI ACWI IMI is sensible.
Can you share which broker do you use? Any ideas about those based in Germany?
I mainly use Interactive Brokers and Trade Republic: ruclips.net/video/4B05bx3pHT8/видео.html
If you're in Germany, I would definitely pick Trade Republic or Scalable Capital (mentioned in the video), as both of them are very inexpensive and take care of any taxes for you
Great videos Angelo! I just started my investing journey and I must say that your portfolio diversification is certainly what I had in mind. I have a question though. Since you're holding only the VWCE ETF at 0.22% p.a. If you had the chance to start over, wouldn't you go for the Developed World Acc. (VHVE) at 0.12% p.a and Emerging Markets Acc. (VFEA) at 0.22% p.a. with a 90% 10% split ? as far as I understand, this combination is now similar to the VWCE all-world but with a benefit of a lower fee, which can make a difference on the long run. Just wanted to know your thoughts on this.
Thank you! I would still keep it as simple as it is right now. To me the small potential savings in the short-term are not worth the extra hassle, especially knowing that VWCE will most likely lower its fees as well in the coming years.
But you can of course do that, nothing wrong with that approach as long as you stick to it and it doesn't cost you more in transaction fees!
Angelo may we know what is your main profession? You are self employed doing what, ? Hope u can share
I have about 1.3k in crypto, 1.5k (500 etfs + 1000 in stocks - big 6), saving account and pension scheme (private, good for tax refund). I currently own 2 etfs - vwce and vusa) what do you think? I know I'm a bit overexposed to USA right now, with the time I'll add some bond maybe but I still think that USA market is the best one
Thank you. As always informative and useful
Hi, don’t you think gold should be put in your wallet? At this moment where China is at low prices, don’t you see it as an opportunity where the rest of the market is high? Thank you
I prefer Bitcoin as an alternative to gold, keeping in mind it carries a lot more risk as well. Since 2017 that decision has served me very well.
hallo, ich bin auch aus österreich und mich würde interresieren wie Sie das mit den Steuern bei IBKR machen. Geben Sie ihren Report einem Steuerberater?
Nein, ich mach das seit Jahren anhand der Steuer-Meldungen auf OEKB selbst. Würde hier aber empfehlen entweder direkt Flatex zu nehmen um das Thema zu vermeiden oder zumindest Trade Republic oder Scalable, die 1x/Jahr mit KPMG einen Steuer-Report speziell für Österreicher machen: ruclips.net/video/4B05bx3pHT8/видео.html
Thank you for the video Angelo.
I would like to know your opinion about the new ETF SPYL.
Do you think it’s a good alternative to the SXR8 or VUAA?
TER is smaller and it seems to me to have a good fund size considering the time on the market.
Yes, if you're planning to invest into the S&P 500, SPYL looks like a solid option to me! Those fees are hard to beat.
Hi Angelo, informative video, Thanks a lot! As a beginner in investing, it really helps.
I have few doubts about broker account , like if I move tosome other European country permanently, do i need to close my accounton IB or I can change my phone no. and bank account no. simply?
You can of course inform IB about your change in residence to have your address changed, there's no need to switch brokers for that. Luckily they're available all over the world
One question, I want to DCA for 30 years in a S&P500 ETF. Should I use a ETF that covers for fx changes? Like the iShares S&P 500 EUR Hedged or should I use a USD S&P 500 and be exposed to currency changes?
I would pick the non-hedged version personally, especially if you're planning to hold it over the long run
@@AngeloColomboFi thank you very much. I also did some research and I guess even for diversification it could be good. Thank you anyway for your answer! Great content by the way!
Hi Angelo
I fully agree with a single ETF strategy. I was wondering why you're not doing the same for P2P? I had Bondora and Mintos then switched everything to Mintos where compound interest work way more efficiently as a result. Is it just to try and test many of them?
Hi Hervé, it's something I still struggle with mentally. I would love to just have a single P2P platform that covers everything and enables me to diversify as much as possible, like an ETF. But since that is not the case and interest rates constantly change (most of my preferred lending companies on Mintos just dropped below 10%), right now I'm actively using a handful of platforms. As long as everything is automated via an auto-invest I don't mind, it just gets annoying when there is cash-drag due to low supply or changes in rates. But if I had to pick a single one it would still be Mintos, so I get why you're doing it that way!
I can see your point :) Good continuation on your journey and I'll keep following your insightful videos! Cheers from France
I’m really keen on starting these investments in ETFs, I just moved to Spain 🇪🇸 and I would love to know which broker to use here for taxes purposes. If anyone can give me a ideia. Thanks 🙏
My top 3 from this video are all available in Spain: ruclips.net/video/4B05bx3pHT8/видео.html
Angelo, I understand that VWCE is more diversified but why don't you recommend an S&P 500 etf? Sp 500 is proven to rise over time, at a bigger avg rate than all-world indices.
Sp 500 is good for '' short term" (5-10 years) but in long term (15-20+ years) vwce should outperform sp 500
Based on its high valuation vs. the rest of the world, the S&P 500 is actually statistically more likely to under-perform other countries stocks over the coming decade. Of course that may or may not happen, nobody knows. Since I don't have the answer either, I prefer just buying the whole world, ensuring I don't have any regrets either way.
I think now Berkshire is less risky and more reward potential, I consider it like value ETF as vwce is too concentrated in US tech
Perhaps, thanks for sharing your view! 🙏
I also consider that, however keep in mind that ~50% of its portfolio is Apple, what is also US tech (maybe more stable now, but who knows).
Yeah more diversification is always better. Better diversified into whole universe, is there that kind of etf?😆
Great video as usual! Very interesting idea about a supplementary REITs ETF, I'll look into some accumulating version.
I currently have a small portion of my portfolio in Realty Income and I'm overall quite happy with it, despite the tax implications it's dividends have.
Keep it up!
I really enjoy your videos Angelo. Great content. I have a complicated idea for you. I did not see any video online that addresses how to change the portfolio in the future. For example, a lot of people in their 20s 30 are currently investing in accumulating ETF but when decide to retire, Will need to either sell a portion every year or sell and restructure the portfolio to have some or all ETF distributing or get bonds or, or, or, or. If one buy accumulating now and change all to distributing later, we will need to sell and that will realize a lot of profit and have to pay tax vs investing in distributing from the beginning and that will have our wealth accumulation go slower. Have you thought about making a vide on this topic?
Just sharing two cents here.
Have a good one!
Thank you Mohammed! There is no need to switch to distributing ETFs later, simply selling acc. shares is a lot more tax-efficient - we're planning to do the same in retirement: ruclips.net/video/b_TXq9H8prQ/видео.html
Hi Angelo! Do you invest in ETFs through interactive brokers or Trade Republic ?
Both!
@@AngeloColomboFi Trade republic has an awesome interface way better than IBKR that's for sure! However I think IBKR is more solid overall and has lower fees, I think your majority investments are in the IBKR from the screenshots you showed us, is that correct?
Yes, I have the majority in IBKR. The order fees are similar for my ETF - 1.25€ on IBKR using tiered pricing vs. 1€ on Trade Republic, but Trade Republic has an advantage when it comes to smaller investments, as they offer commission-free recurring investments (we use these for our daughter). Either way, you can always transfer shares between the two, so I see no downside in using both of their advantages :)
Hi Angelo, love your videos!
I am also using IBKR for ETF investing. I had also opened a Trade Republic account but never transferred money in it yet. I am thinking this could be good for the 4% cash return. My question is: does trade republic act as a bank account? Plus having the option to invest through it? What if I just invest through IBKR and keep trade Republic as a bank account?
I am also soon to move from Germany to Spain. And I only started investing in IBKR in summer2023, do you have any tips to look out for in this case? Do I need to update my residency? Does that mean I need to divest and invest again, and therefore pay taxes on the operations? Or can I leave the investments there and just change my address? Sorry for the many questions, hope you can help and thanks again!
What do you think about a more aggresive way for reaching the first 100k and just investing in the S&P 500?
Personally not a fan of betting it all on one horse (just US market), but that's up to you
US stock market is unfortunately not only one horse but the only best horse out of the history, and considering its global domination of this country and the higher productivity of the corporates, it will be continued to beat all other markets. Don’t know why European just can’t accept this fact and rather sacrifice their performance in exchange for unnecessary diversification…
Thank you for the video. I particularly appreciate the fact that having more money to invest does not necessaraly mean invest in more products! grazie
Hey Angelo, thanks for another great video. Considering the new higher return on uninvested cash by trading 212 do you plan on switching your emergency fund to their platform or will you stick with trade republic? I know TR offers more security, however, besides this do you have any other reason to not move or start depositing uninvested cash in trading 212 instead?
No, as the money on T212 is invested in an unspecified QMMF, which can go up or down in value according to the terms. It's definitely not comparable to the 4% with the 100K deposit guarantee in Trade Republic.
@@AngeloColomboFi Thank you so much, I was not aware of that, keep up with the excellent work and thanks for the answer :)
2:05 Hello Angelo, thanks for a great video as always! I noticed that you purchased the same ETF 4 times on different days in January. Is there a specific reason for this?
Yes, the first two purchases were automated recurring investments (my wife and I) and the second two I placed manually as I received extra income from my work (I'm self employed).
hello . I'm thinking of switching over to Interactive Brokers. is it suitable for use in Ireland or is there something else that you recommend? thanks
Yes, IB is great and remains my personal favorite. Trade Republic is also worth looking at as an addition, also thanks to the 4% interest they pay on €. I linked them both in the description if you'd like to use my link
I did some transfers to IB in the past by the way, in case that might be useful: ruclips.net/video/1IT9O5WyF30/видео.html
Im gonna personality invest 2000€ but in developed and emerging markets (80/20) to diversify
Sounds like a solid approach! 🙏
Thanks Angelo, MMF is still confusing, how does the interest arise from owning the XEON ETF? Trade republic you enable the interest function and you see the returns come in frequently so how does owning a MMF ETF bring about the interest?
Is there a reason why you split 3800€ worth of VWCE investment in multiple transactions within the month ?
I do one lump-sum end of the month.. but market was already at way higher price per share when I bought :(
My wife and I each invest a fixed amount at the start of each month via a recurring investment and I then invest more whenever I have more cash to invest. I'm self employed, so I usually have my invoices paid at random times.
Hi Angelo, first thanks and congrats for your channel and the wise work that you Share with this comunity. Ibhave folowing since the boom of P2P and the crashes 😬🤦
Anyhow, today my question is:
Ir i use your link to Open Trade Republic acount indo Also receive any compensation?
Thanks
you could have left the spam reply, it was better than nothing.
Hi Sergio, you can try using this code: 3FJKNLKV in addition to the link and see if it gets you something.
Sorry to see you upset. Do you have any idea how long it takes to respond to hundreds of comments and emails every week? :)
@@AngeloColomboFi thanks Angelo and sorry for my "acid" mood : )
Invest 1000€ generally or pro month? Pro year?? That’s important to know before showing the video.
As in total investment portfolio
Thank you for the valuable information Angelo! Really helpful. Once your portfolio is greater than 100k€, shouldn’t you try to protect your portfolio against potential bankruptcy of broker and the asset manager? Therefore I would expect to use multiple broker platforms + spread your portfolio across different asset managers (SPDR, Blackrock, Vanguard,…). What are your thoughts on this?
Tips on how get a place with such a low rent?😂
Hi Angelo, great video as always! I am interested if you maybe do a video on security of those brokerage firms of your choice? Especially, if we are talking about a larger portfolio that is targeted for a pension in the future. Is it safe to do it through in one account of IB or through more brokers? How does the compensation scheme really work in terms of fraud or bankruptcy regarding the asset possitions?
I think over 100 k it is good to diversify. What is there is problem with broker like frozen funds due to incorrect aml claim? It happens on Revolut and support is terrible. Or if the broker crashes or misused your stocks or funds. Not high chance but can happen
I think Revolut is not a good example 😅
That's why it's important to choose reputable brokers that are strictly regulated in Central Europe (not Cyprus, Malta etc.), so that assets are always properly segregated and that there are regular checks in place. There's of course nothing wrong with you adding a second (or third) brokerage account if it makes you sleep better at night.
@@AngeloColomboFi Do you think Interactive Brokers is safe enough? I use it as my main broker
@@AngeloColomboFi what is the issue/risk with revolut?
IBKR is the best-capitalized independent broker in the world, is a publicly listed company and you can look at all of its audited financials. It doesn't get much better than that 😅
I love using Revolut as well for fast transfers and payments, especially in other currencies. As a broker they're not comparable though - starting with the 0,12% p.a. in brokerage fees and the inability to transfer shares
I have a question about my portfolio.
Right now I am investing a couple Index funds that are giving me like a 4,17% annually.
Recently I have started hearing about ETFs and decided to invest 75% in a global ETF while the rest is in small cap index companies of europe and EEUU.
The thing that I dont know is if it is a good idea to invest in both the ETFs and the Index funds as I am reducing the snow ball efect I could generate investing in just one type right?
Any help is good!!!
You picking one or several ETFs doesn't change compounding (what you probably meant with the snowball effect), as long as the total returns (capital gains incl. dividends) are the same/similar.
What broker are you using?
Ciao Angelo, another very good video, maybe in the future we have the opportunity to see each other to have a coffee and discuss about investing , regards
The biggest risk of all is to take none. (M. Hobson)
At 1 million I would look for a spending strategy, I believe the most common-sense would be drugs and prostitutes.
😅
What is your only etf?
Vanguard FTSE All-World Acc. (VWCE) is the only one we've been buying for the past few years
@@AngeloColomboFi "I thought you had purchased the SPDR MSCI ACWI IMI UCITS ETF with your wife, ISIN IE00B3YLTY66 | Ticker IMIE... Why VWCE with a TER of 0.22 instead of the SPDR MSCI ACWI IMI UCITS ETF with a TER of 0.17?"
SPDR only lowered its fee last year, it was 0,4% before. VWCE is more tax-efficient for Austrian investors (we have strange ETF taxation here), so it wouldn't make sense for us to switch. And Vanguard will most likely lower its fee as well in the not too distant future
@@AngeloColomboFi thank you very much Angelo
How is BlckTken300 better than anything else right now?
So you are saying that when the market is in a downtrend due to a market collapse it’s a good idea to just leave your money invested because when you stay long enough it will go up again?? Maybe have a look at the Japanese market. They are still waiting for a couple decades already to get back to their last high. Just saying.
Selling during a crash would most likely be the worst option. I'm also a proponent of investing globally for reasons like that, not just in a single country (Japan). Feel free to look at what happened to the MSCI World, even though Japan was 40% of the index back in 1987.
@@AngeloColomboFi selling before the crash and go back in at a lower level. Not selling during the crash, then it doesn’t matter anymore. Then like you say, you just have to keep going.
@@AngeloColomboFihow come Japan stock market is few decades down from ath, but as a country Japan is superior from rest of the world? 🤔
How do you know when the market is about to crash? Did that way of thinking work out for you in 2020 and 2023?
@@dejviddejvich573 because of printing, e.i. Debt
HMWO maybe for someone who wants only developed countries.
But still I’d go EM and DEV in VWRP or FWRG
Lol I just noticed the bulk cat over there 😂
💪
Exactly, keep it simple : one ETF with automated investing and SWAN / sleep well at night
Crap. No difference if u invest 100 or 10kk euro.
Well... Why should it be different? I understand it may depend on your income/investment ratio to allocate in short term but if what u expect to do in next 10/20 years is be invested (all) without needing the money, it seems totally logic even with a million. Of course for some big amounts you may want to enter the market in DCA for 3-5 years to feel better (not to obtain better returns).
@@ivivivir ... EVERY study shows that its better to go all in lump sum than dcaif u got bigger amount of cash... so why are you smarter than statistics??
@@bartz4439 I know the statistics but one has to do what makes sense for him and his circumstances.