Cash, Bonds and Stocks

Categories Broker, Investment2 Comments on Cash, Bonds and Stocks
This post is part 2 of 5 in the series Investing – All about investing.

In the first post of the Investing series, I covered the basics of investing. This should have given you a few important rules you should follow before you invest. However, we did not cover into details how to invest. In this post, I am going to cover the most important financial instruments that you can use to invest: Cash, Bonds and Stocks.

All these instruments are quite different. They are all important. If you are serious about investing, you should be aware of them. We are going to see the advantages and disadvantages of each of these instruments. By the end of this post, you should have a better understanding of them. And you can always ask questions for more information :)

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The basics of investing

Categories Broker, FIRE, Frugality, InvestmentLeave a comment on The basics of investing
This post is part 1 of 5 in the series Investing – All about investing.

 

This is the first post I am going to write about Investing. I am going to try to cover as much as possible on the different forms of investing. In this first post of the series, we are going to see what is investing in the broad sense.

I do not yet know how many posts will be in this series. I will try to cover the basics, the stocks, the funds, Exchange Traded Funds (ETFs) and so on :) Hopefully, it will be interesting for some of you and it will motivate some people to start investing.

I am no financial advisor. I am not nearly an expert investor. This post is just what I learned about investing from my experience and from research. 

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How to buy an ETF (VT) on Degiro

Categories Broker, ETF, Investment11 Comments on How to buy an ETF (VT) on Degiro

In this post, we are going to see how to buy an Exchange Traded Fund (ETF) on DEGIRO. Vanguard Total World (VT) is the main part of my new portfolio. So I am going to use VT as an example. The process is exactly the same with any ETF you buy.

I decided to use DEGIRO after comparing with several other brokers. The main advantage of DEGIRO is its very low fees. You can read my full review of DEGIRO if you want more information. This post assumes you already have an account with DEGIRO. If not, you can open one account very quickly.

Note: Links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF and I will receive 20 CHF.

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How to see total result on the mobile Degiro application

Categories Broker, Tips2 Comments on How to see total result on the mobile Degiro application

In my review of DEGIRO, I mentioned that something I really did not like was that it was not possible to see the total result of the position in the mobile application. The application is only able to display the daily result of each position of your portfolio. Personally, I do not really care about the daily variations of my portfolio. I am much more interested in the total results of my portfolio. This is what most long-term investors should care about.

However, I just found out it was, in fact, possible to see this information on the DEGIRO mobile application. It is just not really intuitive. Or maybe, it is just me. But once you know it, it is really easy to use. Since it was not easy for me to find it, I am going to post my findings for all of you!

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My review of Degiro as a broker for Swiss investor

Categories Broker, ETF, Investment, Switzerland2 Comments on My review of Degiro as a broker for Swiss investor

(This post was first published on Mustachian Post. Thanks a lot to MP for the opportunity of guest posting.)

I have now been using DEGIRO for about four months. I think It is now time for a review of the tool.

It’s important to mention that I never tried any other broker. I decided to use DEGIRO four months ago based on costs. Moreover, I am a computer scientist, so no issues with potential tech issues. Finally, my portfolio is very small, so my experience may not compare to yours.

Note: The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF and I will receive 20 CHF as well.

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Degiro updated its Cash Funds structure

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DEGIRO just updated a few things about the cash you hold in your account.

Since Netherlands investment firms are not permitted to hold cash, Degiro invest the cash from your account in a money market fund. There is a separate money market fund for each currency that you can hold with Degiro. Money market funds are principally investing in government bonds, with very high quality. However, the interest rates are very low and even negative for many European countries. Therefore, some money market funds, such as the EUR or CHF cash funds, have a negative interest rate.

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Updated ETF portfolio for Switzerland – Bonds and Dividends

Categories Broker, ETF, Investment, Switzerland20 Comments on Updated ETF portfolio for Switzerland – Bonds and Dividends

Update: I have now made some changes to make my investment portfolio much simpler.

In 2018, I wanted to add a few bonds to my portfolio. I am in long-term investing. I only in my 30s and I do not plan to retire for at least 10 years. And I already have some very safe investments in my second and third pillars. Therefore, I do not need a lot of bonds. But I wanted to add 5% of bonds into my portfolio to be safe and to allow for more re-balancing opportunities. Also, I do have bonds in my third pillar account.

Moreover, I wanted to improve my portfolio. More specifically, I also wanted to get rid of my crypto-currencies. So, I updated a bit my previous portfolio to reflect this. Moreover, I also wanted to depend less on the dollar. In this post, we are going to see exactly what I have changed in my portfolio.

Remember that it is only one example of a portfolio. I am no financial advisor. I am just sharing what I am doing for investment. What may work for me may not work for you.

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First deposit at DEGIRO and first ETF investment

Categories Broker, ETF, Investment3 Comments on First deposit at DEGIRO and first ETF investment

After having opened my DEGIRO account recently, it was time to use my DEGIRO account. My first deposit reached my DEGIRO broker account! Let’s start with the good, there is no fee for transfer! I have transferred 1000 CHF and exactly 1000 CHF arrived in my account. I was afraid of a hidden fee or transfer fee. But there are no fees!

With the bad now: The transfer took 8 days. I sent the transfer Friday 17th, the bank debited it from my account Monday 20th. It only arrived today, Tuesday 28th on my broker account. I have contacted DEGIRO several times in the meantime to ask about the whereabouts of my money. They did have an issue with their bank (CIC Bank, Basel). The bank was not transferring the money statements to them for about a week. So, normally, this should not be so slow. I am inclined to give them the benefit of the doubt for this one. I will see what happens to my second transfer. I sent it yesterday and it should arrive tomorrow on my DEGIRO account. If this issue is something that happens regularly, this is a really bad thing for DEGIRO, but we ll see.

Update (6 months later): I have not had any more issue of that sort with DEGIRO :)

My first investment at DEGIRO

With some part of this money, I bought 13 shares of Vanguard Total World Stock ETF (VT) at 73.16 USD. This ETF is a passive fund that holds 7955 stocks in the entire world, weighted by capitalization. It contains around 50% of the stocks from the United States and the rest is from the entire world. The fund contains 2.6% of stocks from Switzerland. It has a very low Total Expense Ratio (TER) is 0.11%, which is very low and absolutely fine for me.

Since this ETF is in the list of free ETF offered by DEGIRO, I did not pay any fee to buy the shares. Nevertheless, I paid a small fee for the currency conversion. I paid 0.19CHF on an order of 936.80 CHF, which means a fee of 0.02%. This is pretty good since I was paying around 0.5% fee for funds on PostFinance :)

The buy was pretty easy to do on DEGIRO, no issues here. At first, not very clear, but it turned out quite OK. I will post more information on the future on how to use DEGIRO. I received a mail notification for both the deposit and the trading transactions. Everything seems fine.

I am not totally sure on my final portfolio, but VT will definitely be a part of it and probably a large part at that. I will keep you up to date as soon as I update my portfolio.

Opened a broker account on DEGIRO

Categories Broker, ETF5 Comments on Opened a broker account on DEGIRO

After reading a lot about funds and low-cost index funds in particular and the inefficiency of most actively managed funds, I decided I will stop giving my money to fund managers. Therefore, I decided to start investing in passive index funds and not active funds. Moreover, I also decided to only focus on no-load funds. Currently, I was investing with PostFinance funds, but the Total Expense Ratio (TER) of these funds is high and PostFinance is charging a 0.5% percent load on each buy of funds.

Since we do not have access to excellent mutual funds such as Vanguard funds here, I decided to invest in Exchange Traded Fund (ETF) versions of the funds. This means I need a broker to invest. I looked at the trading offer of PostFinance but it is insanely expensive. Therefore I decided to find a new broker with significantly lower fees.

The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF in transaction credits and I will also receive 20 CHF.

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