mtbiking

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About mtbiking

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  • Location Munich
  • Nationality Portugal
  • Gender Male
  • Year of birth 1979

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  1. Trouble with the neighbours

    Interesting reading nonetheless     14 years later we can say that reversion to the mean also applies to the German real estate market
  2. E-car tips

      Can you  compare a Model 3 with a Passat? A model S sure (though the Passat is more practical) but a 3? I’m interested in knowing your opinion since you’ve test driven it, I have a perfectly fine if ageing Passat diesel which will be exchanged at some point for a Tesla (like) car. I could justify the price for a model 3, but the car seems a bit too small for a family car (two kids). The Passat is truly a wonder in terms of space. If if had to replace it tomorrow I imagine I’d tend to go for a used model S.
  3. I’m 40 and have been managing my money for the last 15 years or so. Besides my company’s retirement plan I invest periodically in whole world, SP500 and a bit of DAX ETFs. Since Vanguard came to Germany I’ve switched to buying ETFs from them. We've sold in two occasions: to help finance our properties in Munich. We’re now back on a pure accumulating phase (if the property market does crash in Munich I’ll be tempted to buy again - cost averaging Munich’s real estate market would be a blast). I don’t sell to buy cars or other consumer goods: that helps in avoiding lifestyle creep. We use our much smaller short term savings for that.   my advice for what is worth: read a couple of books by John Bogle and the essays of Warren Buffet, open an account with Onvista and start a monthly savings plan with a Vanguard all world ETF. If you have savings ready to invest just increase your monthly plan for a while. You don’t need a middle man and you don’t need to worry about timing the market. Then pray for a market crash. One of the best thing that happened to us was all the  fearful people in 2008 and 2009. I enjoyed last December. Market crashes in your productive years are something to hope for.
  4. A moron is born every minute. He doesn’t have a leg to stand on, what he should have made is insisted to be co-owner of the house, the car, etc or yes, marry. This is not even being German, it’s simply not wanting to end up poor.   so yeah, you have nothing to worry about. Morally, though, treating house and car  payments  as gifts when bought under a “happy forever  together” assumption is a bit thin.
  5. Investing advice for an expat in Germany

      I live in Germany, so..
  6. Investing advice for an expat in Germany

      I don't think that's possible with Vanguard DEU but to be honest I've never been interested in ETNs.
  7. Investing advice for an expat in Germany

    Vanguard Deutschland, jeba, not America. They sell EU ETFS for the german market. You pay a bit more in management fees.
  8. Investing advice for an expat in Germany

      Yeah, and he's almost 90 . Great long term plan. Even he plans his inheritance to his wife to be invested in a SP500 index fund. I'd maybe buy one B-share in order to get their annual insights, and that's it.   Acambas, you have the right idea. Congratulations on your savings rate and go for it. In answer to your questions:   1) Onvista. They're currently the cheapest online broker  (tendentially no fees for monthly saving plans for private investors), are recommended by Finanztest and you have a wide selection of ETF's available. Flatex and a couple others are good alternatives.   2) Taxes are straightforward with ETF's as the bank must take care of everything for you. Don't let that scare you into inaction. The first €1602/year you earn from dividends are tax-free.   3) No  need. Read this book: The Investor Manifesto, by William J. Bernstein (you can find it online) and read the writings of Warren Buffet, also available online for no cost. Pick up a book by John Bogle and you're set.   Finally, consider the ETFs from Vanguard. After point 3) you'll understand why.
  9.     And not getting divorced. Keep her happy and satisfied. 
  10.   oh pá that one was low 😉   I maintain that is not efficient to pay off a mortgage with a fixed interest rate lower than 2% per year for 20 years by selling off assets that cost money to acquire and provide you in dividends alone more than that. Yes, there’s some risk involved, but it can be stemmed by 1) having an adequate monthly income/monthly payments ratio 2)  Having a conservative net worth / total worth ratio.    
  11.   Either they have around €300,000 in assets or they don't. If they don't, then buying a €900,000 house on €6000/month is somewhat borderline (insane). If they do, I hope they're fully invested and not lazily parked in some bank account, in which case they should really be used as security and keep generating wealth instead of sold off to pay a hypothetical house faster in an age of historically low interest rates.  
  12.   Yep. But you can actually use your income generating stocks and properties as collateral, there's really no need to put upfront 300k€ provided you have the assets.
  13.   Oh, I agree with you. We have a substantial amount of money invested in Munich (and Lisbon and elsewhere). Like Mikemelga I did the math and bought neverthless, but we're in Munich to stay and I'm optimistic about the city's long term future. I'm also of the opinion (a bit inspired in the writings of Warren Buffet) that if a bank is willing to loan good money to buy an income generator, apreciating asset with a fixed interest rate of less than 2% per year for a couple decades and use as collateral other apreciating assets I don't see much wrong with it.
  14.   Not buying property in Munich only because the prices are too high is entirely reasonable from an investment perspective - investing the same amount in a MSCI World ETF will almost certainly have higher returns in a 30 year time period and bring less headaches - but a price cut is unlikely to happen in the long term. Yes, the prices are very high, but Munich is one of the very best places to live and to work, a sort of Eliseum when seen from most other locations on Earth. With globalization, climate change and worldwide population and life expectation growth adding pressure to the prices it would take a lot to change this in the long run, short term crisis notwithstanding.
  15.   I don't know how the world will be like, but I can tell you that €2500 in 10 or 25 years will be akin to €2000 or €1500 now with a historically low  2% Inflation rate.