What I understand is that it’s better to bet on the market in total than on just a stock. I have no idea which of Vanguards offerings I would need to go with and what my means need to be
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Replying to @marciplan
Depends on your situation, but let’s assume you want extra income during your retirement. Key to a minimal effort investment strategy are diversification to reduce risk, low cost, and simplicity.
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Replying to @thijsniks @marciplan
If you start at age 30, you’ll want to save 20% of your pre-tax income. This number includes any employer funded plans and assumes you’ll also eventually receive some social security payments from the government. https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save …pic.twitter.com/Sa5rL6iAW8
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Replying to @thijsniks @marciplan
These savings alone are not enough, so you’ll need to invest it. Historically, stock has provided the highest average returns (~8% real return per year) https://www.frbsf.org/economic-research/files/wp2017-25.pdf …pic.twitter.com/BLiGSxiusf
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Replying to @thijsniks @marciplan
You’ll need to decide which stock index (or region) to buy: United States https://global.vanguard.com/portal/instl/nl/en/product.html#/fundDetail/etf/portId=9694/assetCode=equity/?overview … Europe https://global.vanguard.com/portal/instl/nl/en/product.html#/fundDetail/etf/portId=9681/assetCode=equity/?overview … Developed markets https://global.vanguard.com/portal/instl/nl/en/product.html#/fundDetail/etf/portId=9675/assetCode=equity/?overview … World https://global.vanguard.com/portal/instl/nl/en/product.html#/fundDetail/etf/portId=9679/assetCode=equity/?overview … More countries = more diversification
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Replying to @thijsniks @marciplan
Personally, I invest in the global fund as it’s in my opinion hard to estimate which region will perform best over the next 40 years
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Replying to @thijsniks @marciplan
Stock does come with considerable volatility, so you will want to reduce that by buying bonds instead as you get older. Vanguard has reasonable transition paths: https://investor.vanguard.com/mutual-funds/target-retirement/#/mini/overview/1487 …pic.twitter.com/YzFUsr8cFb
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Replying to @thijsniks @marciplan
A broad bond fund is probably your best bet for that: https://global.vanguard.com/portal/instl/nl/en/product.html#/fundDetail/etf/portId=9443/assetCode=bond/?overview …
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Replying to @thijsniks @marciplan
And you buy these funds through a DeGiro custody account, which unfortunately does mean that you’ll need to set a monthly reminder for that.
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(All of this would be even simpler if Vanguard made its Target Funds available as European ETFs)
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