My Investor Policy Statement – You need one too!

Posted on Categories ETF, FIRE, Goals, Investment6 Comments on My Investor Policy Statement – You need one too!

It’s been a long time now since I wanted to write my Investor Policy Statement (IPS). I just took some time over the last week to write it down completely.

So, what’s an IPS ? Basically, it’s a set of guidelines for your investing. It will state how you are going to invest and why. It should also state how you will react to some events.

Why would you need an IPS ?ย The reason is to keep you on the right path when a situation trigger. If you already though of the problem and the solution to it, you know how to react. You don’t need to be emotional about it. And emotions in investing are generally a bad thing.

I didn’t invent the concept! It’s an old thing. It was at first used between a portfolio manager and the client. This was helping the manager invest in the way the client wanted. Since I’m my portfolio manager, I’m doing this statement only between me and me. I was motivated to write my IPS after I read this post by Mr. Retire In Progress. He was himself motivated by another post by Physician On Fire. I would also recommend you read these two posts if you want more information on the subject.

If you want an example, you’ll find my Investor Policy Statement just below. Keep in mind that every IPS is different and should be made for your own situation and goals. So let’s delve into my own IPS.

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New ETF Portfolio – Simplicity is key

Posted on Categories ETF, Investment11 Comments on New ETF Portfolio – Simplicity is key

A few months ago, I updated my portfolio to add more bonds and more dividend yielding stocks. Since then, I had a lot of discussions on this portfolio. I discussed it on the comments on this blog. I also discussed it on the bogleheads forum. Since these discussions, I’ve given a lot of thoughts on my portfolio. I realized there was several issues with the portfolio. I’m going to discuss these issues here and present the new portfolio on which I’ve settled on. The biggest issue was the complexity of the portfolio.

I’m going to start with the decisions that I made about my portfolio and the reasoning behind them. If you want to checkout the new portfolio, simply jump to it ๐Ÿ˜‰

First a few acronyms:

  • Exchange Traded Fund (ETF): A fund that is traded like a stock
  • Total Expense Ratio (TER): The amount of yearly fees in a fund

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April 2018 – Birthday and new savings record

Posted on Categories ETF, Frugality, Investment, Monthly, Spending11 Comments on April 2018 – Birthday and new savings record

After a record-breaking March 2018, April 2018 is even better ๐Ÿ™‚

Although I had some significant expenses this month, the savings were great. This is partly thanks to the gifts I received this month for my 30 years birthday! I also managed to keep my expenses quite low. And my net worth made a very nice jump. Overall, a great month ๐Ÿ™‚

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My review of Degiro as a broker for Swiss investor

Posted on 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’ve now been using DEGIRO for about four months. It’s now time for a review of the tool.

I would like to mention that I never tried any other broker. I decided to use Degiro four months ago based on costs. Moreover, I’m 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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Updated ETF portfolio for Switzerland – Bonds and Dividends

Posted on Categories Broker, ETF, Investment, Switzerland18 Comments on Updated ETF portfolio for Switzerland – Bonds and Dividends

In 2018, I wanted to add a few bonds to my portfolio. I’m in long-term investing. I only in my 30s and I don’t plan to retire for at least 10 years. And I already have some very safe investments in my second and third pillars. Therefore, I don’t 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 changed in my portfolio. Remember that it’s only one example of a portfolio. I’m no financial advisor, I’m just sharing what I’m doing for investment.

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First deposit at DEGIRO and first ETF investment

Posted on 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’ve transferred 1000 CHF and exactly 1000 CHF arrived in my account. I was afraid of a hidden fee or transfer fee.

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’ve 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’m inclined to give them the benefit of the doubt for this one. I’ll 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 really bad thing for DEGIRO, but we’ll see.

Update (6 months later): I haven’t had any more issue of that sort with DEGIRO ๐Ÿ™‚

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 US 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 didn’t 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 ๐Ÿ™‚

The buy was pretty easy do on DEGIRO, no issues here. At first, not very clear, but it turned out quite OK. I’ll 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’m not totally sure on my final portfolio, but VT will definitely be a part of it and probably a large part at that. I’ll keep you up to date as soon as I update my portfolio.

Opened a broker account on DEGIRO

Posted on Categories Broker, ETF3 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 don’t 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’ll receive 20 CHF in transaction credits and I’ll also receive 20 CHF.

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