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How I invest

Some people ask me how I invest so I wrote down the answer here.

Please note: I’m not an expert. This is not financial advice. I’ve only read a few books on personal finance and this is how I act on that information.

What I do:

  • I don't believe in stock picking or timing the market, nor do I have the time nor inclination to do it.
  • Every month, I save 15% of my salary towards 12 months of living expenses and 15% into investments.
  • I believe in maintaining a portfolio that reflects my ‘risk appetite’. (Google: ‘what should my portfolio look like’ at 30, 40, 50, etc.)

Currently, my portfolio looks like this:

  • 35.00% - ETFs: US Stocks - S&P 500 Information Technology Sector
  • 35.00% - ETFs: International Stocks - Edge MSCI World Quality Factor
  • 10.00% - Bonds: Germany Govt Bond
  • 20.00% - Fun Money. Currently, angel investments via Republic.co. But I want to add cryptocurrencies soon (to buy and hold, not speculate and trade).

Over time, the funds will grow at different rates, so once per quarter I adjust their amounts so that they’re again equal.

What I use:

The above is heavily based on what I learned from the book, If You Can: How Millennials Can Get Rich Slowly.

To learn about the topic, I'm currently reading the book, The Everything Guide to Investing in Cryptocurrency.

Open Questions:

  • I want to get into real estate investing, but haven't made time to study properly. And how to do it from Germany?
  • Most books talk about Index Funds. I’ve found mostly ETFs. I think they are mostly the same. Is this correct?
  • Do you have any real-world advice for me? I would love to hear from you! Please email me chiara@chiaracokieng.com