Portfolio Advice for an Italian Investor

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Topic Author
themadcap
Posts: 3
Joined: Mon Mar 25, 2024 6:45 pm

Portfolio Advice for an Italian Investor

Post by themadcap »

Country of residence: Italy
International lifestyle: Permanent in Italy
Age: 42
Desired asset allocation: 80% stocks / 15% bonds / 5% gold (doubtful if decrease to 70% stocks)


Currency: EUR
Emergency funds: 6 month of expenses minimum
Debt: None and with a house already owned

Goals
Increase my money in the next 20 years and quite ready (I hope!) to resist to markets drawdown withtout too much scare.

Questions
1. I would like to maintain the portfolio simple with few ETF but i wonder if is it wise to put almost all my stocks allocation in in a sigle Global ETF as SWDA. Maybe should be wiser split in 3 different ETF (US, EU and Emerging)?

2. Ok, i know that market timing must never followed but would you go lump sum today if we're talking of a >50k€ portfolio? or do you advice me a DCA in the next 12/18 month?

3. At the moment my ETF portfolio would be the following:
70% global developed stocks (SWDA)
10% emerging markets stocks (EIMI)
15% aggregate bonds (EUR Hedged) (AGGH)
5% Gold (SGLD)
Is very plain vanilla, but would you change something or do you see some criticalities? I don't wanna bet on nothing and maintain it as plain as possible.

4.If i would like to ad a little "spice" would you tilt a little on small caps value?

Thanks a lot for every comments will come!
Last edited by themadcap on Wed Apr 03, 2024 4:26 pm, edited 1 time in total.
Siaigi
Posts: 143
Joined: Sun May 17, 2020 4:24 am
Location: Italy

Re: Portfolio Advice for an Italian Investor

Post by Siaigi »

At the beginning of my journey I had all the nuances of etfs.

Now only two: VWRL and VAGF. It is easy to rebalance and these etf contain all the kind you are looking for.

I found the % quite good for your age and you can reduce the stock quota as you get closer to 67 to reach approximately 60%.
Siaigi
Posts: 143
Joined: Sun May 17, 2020 4:24 am
Location: Italy

Re: Portfolio Advice for an Italian Investor

Post by Siaigi »

In your case, I think you are not interested in dividends so the accumulation ETF is VWCE.
I would avoid investing in gold as well as emerging stocks because they are already included in the VWCE.

For VAGF I would say it's a great time to get in.
jg12345
Posts: 438
Joined: Fri Dec 11, 2020 12:03 pm

Re: Portfolio Advice for an Italian Investor

Post by jg12345 »

You're quite good already, no particular comment

1- Remember to get the Acc version due to tax
2- I would set gold to 0% and have only 3 etfs. if you REALLY want it, then 3% max.
Topic Author
themadcap
Posts: 3
Joined: Mon Mar 25, 2024 6:45 pm

Re: Portfolio Advice for an Italian Investor

Post by themadcap »

thank you guys for the advice.
As said my portfolio is a very plain vanilla recipe but have some commets from you help me to be moro confident.
Is my first time alone on the market and i want to be sure i'm ok.
Also going an "all in" in the market in this particular historical period full of wars and instability scare me a little but I'm repeating myself that's only a bias (i hope).

thanks again
jg12345
Posts: 438
Joined: Fri Dec 11, 2020 12:03 pm

Re: Portfolio Advice for an Italian Investor

Post by jg12345 »

themadcap wrote: Fri Apr 05, 2024 10:10 am thank you guys for the advice.
As said my portfolio is a very plain vanilla recipe but have some commets from you help me to be moro confident.
Is my first time alone on the market and i want to be sure i'm ok.
Also going an "all in" in the market in this particular historical period full of wars and instability scare me a little but I'm repeating myself that's only a bias (i hope).

thanks again
no worries

there's no need to go all in if it's too psychologically difficult.

puoi anche fare dollar cost averaging, metti meta del patrimonio oggi, e l'altra meta' la spalmi investendo mese per mese, di solito per un totale di 6-12 mesi
Siaigi
Posts: 143
Joined: Sun May 17, 2020 4:24 am
Location: Italy

Re: Portfolio Advice for an Italian Investor

Post by Siaigi »

themadcap wrote: Fri Apr 05, 2024 10:10 am
Also going an "all in" in the market in this particular historical period full of wars and instability scare me a little but I'm repeating myself that's only a bias (i hope).
What you need is a strategy that you trust, because the principle is that during a period of crisis you will have to stay the course. And you’ll be alone.
Immediately start taking a short first step and start reflecting thanks to tests like

https://investor.vanguard.com/tools-cal ... stionnaire

or maybe try reading books like Money or Unshakeable by Tony Robbins for example if you know him and you trust him!
Siaigi
Posts: 143
Joined: Sun May 17, 2020 4:24 am
Location: Italy

Re: Portfolio Advice for an Italian Investor

Post by Siaigi »

In the book "Unshakable" Tony Robbins quotes Jack Bogle regarding the S&P500 which collapsed by more than 40% saying:

“Even a veteran like my friend Jack Bogle admits this is no walk in the park. “How do I feel when the market drops 50%?” he asks rhetorically.

“Honestly, I feel bad. I get a knot in my stomach. So what do I do? I'll take out a couple of my 'how to stay the course' books and re-read them!"

In Italiano il titolo del libro è "Incrollabile" e l'avevo pagato 16,50 Euro
Topic Author
themadcap
Posts: 3
Joined: Mon Mar 25, 2024 6:45 pm

Re: Portfolio Advice for an Italian Investor

Post by themadcap »

thank you, i'll try to read it!
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