Things have been hard as Mr. German and I struggle to work together on our long term goals.
So we took a much needed week-off work to give ourselves time to figure it out.
While it may sound boring to most, I spent the entire week learning about different investment strategies.
I’m choosing index investing! It suits my personality the most because it offers a simple, passive strategy with low fees and high performance.
Jim Collins explains it well in his stock series. Which I read the entirety of plus some repeats over the past week. It was easy to understand for a beginner DIY investor like me, and has saved me months of research. Thanks to Jim’s advice, he has also helped me get me over my fear of investing.
This is what I’ve narrowed down to (the percentages are my allocations):
- VCN: Vangaurd FTSE Canada All Cap Index ETF – 35%
- VUN: Vangaurd US Total Market Index ETF – 35%
- VWRL: Vanguard FTSE All-World UCITS ETF – 30%
100% stocks and no dollar-cost averaging, meaning that once I set up my brokerage accounts in both Canada and Germany, I’m going to buy these all at once! (VCN & VUN in CADs, VWRL in euros)
I know I’m heavy on the US markets, since VWRL is also US-heavy, but I’m comfortable with that. VWRL is also the fund that I’ll contribute regularly to, since it’s held in my German account and I live and earn an income in Germany.
I’m also about to purchase iShares DivDAX UCITS ETF, a fund that tracks 15 German large caps traded on the DAX. This will be through my Vermögenswirksame Leistungen (VL) account with money contributed from my employer. Not sure what the status is on this yet, the papers are still being pushed.
P.S. I haven’t included Mr. German’s networth in this mix, since he may want to buy real estate with his stash.