Hello, I discovered recently this community, and over the weekend I read a lot to try and decide on how to invest my money, but I’m still confused on
some aspects, so I would ask some help defining ultimately my portfolio.
- 30yo swiss citizen
- stable job in IT
- plan to live and die in Switzerland
Basically until now I just kept all my money in my private account and besides investing some in Crypto, I never invested in ETF/Stocks.
Now I want to divide my money like this:
- 10% cash
- 90% invested
I have 200k and all are available (no savings account, everything is in my main account) and it’s growing with each paycheck.
After I invest all of this, I will keep investing 50% of what remains from my paycheck each month after paying everything.
That should be around 2’000 CHF to invest each month.
Swiss broker (I know, I know, higher fees, but as I’m confident in investing everything I have without a sweat, I want it to be with a Swiss Broker, for my peace of mind.
in CHF (this is not really a requirement, but I assume that it will much cheaper to invest in my main currency, than having to pay forex fees, right?
90% in Index ETF (no bonds) and 10% Crypto (I don’t need any Crypto advice here, got that covered, just ETF)
all ETF should be Ireland domiciled funds (because I keep reading that this is a good thing)
Today I opened a SwissQuote account (I chose this broker, as it looked like the biggest in CH).
To sum up, I’m seeking advice on how to invest 160k in Index ETF (20k will be going in Crypto from the 180k total available).
My main questions are:
I understood I should take accomulating ETF, but on SwissQuote I only found the Vanguard VWRL as distributing in CHF. What should I do in this case? As I planned to have the higher % in VWRL.
Should I stick to CHF? Because I saw some index ETF that are only available in USD or EUR on SwissQuote and I’m not sure what would be the real cost in exchanging currency there, as I only have CHF availability
-I also read in this forum that accumulating instead of distributing doesn’t make a difference in Switzerland, because you pay the same taxes? In my case, using SwissQuote, what would be the difference? For taxes, I would pay the 100CHF yearly for the tax report from them. If I pick the distributing, do I manually need to reinvest the dividends?
I’m going to deposit the money on SwissQuote this week, I assume, due to this pandemic, a lump-sum investment of 160k is a bad idea right?
In what period of time I should divide my investments? I was thinking 30-50K per month for the next 3-6 months.
Finally, if I want to allocate my portfolio something like:
- 60% All World ETF
- 15% Emerging markets
- 15% European union (at least 5% in CH(SMIM) and some in UK)
- 10% Asia Pacific
Based on this, what ETF available in SwissQuote (And possibily from Featured ETF, so I only pay 9CHF flat per transaction), should I pick?
Thank you and I hope my questions don’t sound exactly like many others, I tried to read as much as possible over the weekend, last week I had no clue
what an ETF was!