I’ve recently entered the market \[32M\] with €10,000 seed and a known budget of €1-2000 per month to invest in these 5 ETFs that have accumulating dividends, the plan is to set this fund up to retire at the age of \~55 with a portfolio that I can withdraw 4% from per year to live an easy life.
The plan is the below allocations using €1000 a month investment.
ETF Name and monthly investment:
Vanguard FTSE All-World High Dividend UCITS ETF - €350
VanEck Semiconductor UCITS ETF - €250
iShares MSCI World Small Cap UCITS ETF - €150
iShares Automation & Robotics UCITS ETF - €150
VanEck Defense ETF A USD - €100
Around year 14, invested €168,000:
• Portfolio value ≈ €340–360k
• 8.6% return ≈ €29-31k
• Returns > €12k contributions
• Growth now does more work than you
Year 25 If you stick with the plan, invested €300,000:
• Portfolio value ≈ €1.5-1.7million
• 5% return ≈ €75-82k
• Returns \~ € 6,650 per month
• dividends far exceed €12k contributions per annum
This with the accumulating dividends should provide a portfolio value of €1.63million with €300,000 invested after 25 years. Ideally I’m going to push more than €1000 per month but I need to be considerate that life gets in the way.
Finally some generic investing mantra:
One Rule for Success.
Invest every month. Do not stop during market crashes. Do not change the plan.
Time + consistency matter more than market timing.
@reddit set reminder for this post in 25 years. See you all there my fellow millionaires.