Thoughts on Investing

Hi guys it’s been a long time since I have posted an article besides the monthly dividend income and portfolio update. Not only that I have full time job I also decided to move to another city and start at a new company. All this was very time consuming in the last 2 months, so less time for blogging after all. Nevertheless I continued with building up my dividend portfolio, as you could see in the monthly updates. I am already very happy right now with my dividend portfolio, especially considering where I was a year ago :). But there is still a lot of work to do. And big promise from my side I will post now at least on a weekly basis, to get finally set up my blog in the investing community.

So in the last couple of weeks I was thinking a lot about other investment alternatives, besides just dividend paying companies. I think most of you did read the intelligent investor about diversification etc. and we all know the portfolio theory of Harry Markowitz “don’t put all your eggs in one basket”. Considering stocks I own, I think I already reached a good diversification, with some weaknesses on the currency site, I definitely need to increase the weight of european stocks. But that’s a different topic.

Anyway let’s come back to investing alternatives.

ETF

There are ETF’s for example. I have already found one good ETF in which I will invest very soon.

iShares STOXX Global Select Dividend 100 UCITS ETF.

This ETF is managed by BlackRock and consists of a 100 different dividend paying companies, some companies I already own but also companies I would like to own but never invest in because of high fees from my brokerage account. The fee for this ETF is currently at 0.46% with a current yield of 4.53%. The ETF pays out quarterly.

BONDS

Bonds for me are also an alternative. But there I would never invest in a single Bond I would more go for Bond ETF’s as well. I have already one ETF on my radar., again from BlackRock.

iShares Global High Yield Corp Bond UCITS ETF

This ETF consists of several corporate Bonds from so called industrial countries. Currently yielding at 5.18% with fees of 0.50%. This ETF pays out twice a year.
Of course there also other very good Dividend and Bond ETF’s from Vanguard etc. These are just examples from my side and I do not get any commission a recommended the two ETF’s at all.

Rental

So after all one of the typical investment outside the financial market, Real estate. I could imagine doing that in 10 years from now, when I have enough cash and already build up very good portfolio. In this investment I would never take out a loan, so I have to wait a couple of years for such an investment. But if my financial plan for the next 20 years will work out as I planned I could buy two small apartments for 100K EUR and later on for about 150K EUR. Both could be leased for about 600 to 700 EUR per month. This would boost my passive income enormously. Nevertheless real estate investment is also very time consuming and if it is not going so well it can cost you a lot of money. But yeah it is an idea I have for the future :).

Cash

Last but not least Cash, for me one of the most important part in a portfolio. You always need cash in your daily life and nothing could be worse when you run out of cash, you might even sell then some of your holdings. For me that would be the worst, so there I always put annually at least 30% to my cash account.

So just my thoughts about investing…

 

Are you guys thinking about other investment alternatives as well? Or are you only into dividend investing after all?

2 Comments

  1. Many would disagree with you about a cash account of 30%, but not me. Having ended up on the wrong side of a down economy, I like to hold more than the standard emergency cash. My sweet spot is $75,000 in cash, but right now I’m around $30k. Thanks to my daughter and her college expenses for this dip.

    • Hi,
      totally agree with you cash is always important no matter if the interest rates are low or better not existing.

      What are your thoughts on other investment alternatives?

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