Mentoring opportunity

Hello! I’m new to this community and would love some friendly advice about how much should I invest in my recently purchased 1 ETF.

I live in Switzerland and would like to retire in southern Europe in a few years.

Anyone open for a virtual coffee chat to exchange impressions?

Thank you!

I rather not share publicly. I have good savings that are sitting in my account (I know, I know…) so I’d like some advice about what’s the best way to invest them.
I’m still under the novelty fear of how much of that investment should I put into ETFs. All of it???

You would not be able to get over the anxiety without actually investing. It’s very difficult to believe that bear markets are temporary until you have gone through one. This in my view is the most complicate part of investing money when you already have a lot of savings. It’s easier when you start at young age when investment size is smaller.

No one can explain to you how you will feel when your life savings are down by 20% in a bear market. It would best to move to start slow and learn about your tolerance for volatility. The fact is bear market can happen all of the sudden.

But on the other hand , cost of not investing is also quite high (i know you know :))

I would suggest to watch these videos

The summary of these is

  1. index funds works for most retail investors
  2. international diversification is good strategy for long term investing
  3. home bias is not bad

Once you are convinced. I think then only decision left is to define what is X, Y and Z in your portfolio. This would be simplest way to start

Portfolio = X% World equity ETF + Y% Swiss equity ETF + Z% Bonds + cash

Next questions would be

  • which broker (Swiss or International)
  • which domicile ETF exactly (US, IE or CH)
  • which ETF exactly

But I think first you need to be clear about X , Y and Z. Y can be 0% if you just want one ETF but that would mean no home bias.

I started my journey in early 2021 and I wish I watched these videos before. My life would have been simpler :slight_smile: I can share some of the impressions if you like over virtual chat as you asked for. But I have to say , I have no professional education on this . I only know what I learnt from my own research or via forums like these


Thanks so much! Really valuable content.

I own 2 homes outside Switzerland, which are fully paid and rented, and contribute to the 2nd and 3rd pillar. So… after reading multiple books and articles and watching YouTube videos, it was clear that ETF investment was the pillar I was missing.

I recently chose and purchased my first ETF (Vanguard FTSE all world). But… I don’t feel confident enough to move the money I have in my savings account to it all at once!

Will the fear ever go away??

If you are convinced by your investment strategy move 1/12th of your cash to your broker monthly and buy some etf shares.
Next year you should be confident enough and 100% invested.

1 Like

Hi there… I can say that fear will only go away with time… But only time can help you get more confident.

For example. I started in Feb 2021, by end of 2021, I was +12% or so… And then in 2022, I was down by >20%. Now was i worried? of course. But during that time, I only invested 30% of money i wanted to invest. So i thought , all i can do is wait…Over time, the portfolio recovered. and now I am fine.

Now the fun part is that now my portfolio is bigger. So the next bear market will bring even bigger impact. But i have a bit higher confidence than first time. Each time helps a bit more. The good thing is that if i remain invested, the life time gains might be enough to absorb the next downturn. What I have noticed is that people take positive returns for granted but we feel much worse with negative returns. Most likely loss aversion is hard wired in our brains.

Now that you already have decided on Vanguard all world ETF, I think you are good. Just keep adding slowly and see how it goes. Be prepared for fluctuations. For example, average S&P 500 return is 10%, but the actual returns on yearly basis might range from -20% to +30%…

Just a side note - I know that stocks return the maximum returns over long period, but sometimes, it is important to think about what are we trying to achieve. So also think about your objective and how much return are you seeking.For example - if you are happy with 1-1.5% above inflation, perhaps bonds would be good enough. if you are seeking 4-5% above inflation, then you need to go for stocks.

1 Like

Thank you! Just reading you all makes me feel more confident.

1 Like