My Entire Investment Portfolio 1

Several people have asked me about my asset allocation besides P2P lending, so I decided to give you a detailed breakdown of my entire investment portfolio.

I love seeing other people’s real numbers and actual progress when it comes to investing. Personally, I just find that way more interesting and motivating, I’m sure a lot of you feel the same way.

My friend Bernhard Hummel is a great example of this, talking to him always makes me excited about investing.

Many of you told me in comments and e-mails that you appreciate my transparency when it comes to sharing my numbers openly, so I wanted to try paying back your support by putting all my numbers openly on the table in this post.

I couldn’t wish for a better community of people reading my blog and watching my videos on YouTube. The same goes for the people I regularly interact with in P2P-related groups on Facebook (1)(2). You guys are awesome.

I have to be honest, I was struggling a bit with my decision to share all of my assets like this. After all, I’m displaying everything here and in most places in Europe, we don’t really talk about money openly.

Nonetheless, in the end I decided to go for it!

My Entire Investment Portfolio

For more context, here is a bit of background information. I’m 29 years old and married. My wife is 26 and currently finishing her Master’s degree.

me and my wife

I’ve been earning money far longer than she has, so technically, 3/4 of our investments come from my side. Everyone has their own view on this, but in our case, we count all of our investments together as one family portfolio.

So whenever I write “my portfolio”, what I really mean is our shared investment portfolio.

That’s also how we make investment decisions. We first look at how much we have in each asset class already and then decide.

We live a happy, minimalist lifestyle with low living expenses, which allows us to save most of the money we make from work. But I think that’s a topic for another day.

Not that I’m an authority on the subject, but based on my own experience, I’ll just say this:

If your goal is to one day reach financial independence, meaning being able to live purely off the returns from your investments, it doesn’t matter how much money you make – what actually matters is how much of that you’re able to save and invest.

Portfolio Part 1: ETFs

Alright, after that long introduction, here is the first and biggest position in our portfolio.

You might be surprised to hear this: It’s not P2P lending, but actually exchange traded funds, also known as ETFs.

We currently have close to 30% of our portfolio, meaning 39.000€, invested in broad, low-cost ETFs, covering equities all over the world. They make up the bulk of our long-term investments and we are not planning to touch this part of our portfolio over the next 10+ years, maybe ever.

I also consider ETFs to be a good protection against higher inflation, in case the Euro loses its value for whatever reason. In the past, the stock market has been a good hedge in periods of hyperinflation, as was the case in Germany between 1920-1924.

german stock market during hyperinflation
Source

How I got started with ETFs and my experience so far

I started my foray into ETFs in the beginning of 2017. First through a robo advisor. Then, I realized I could easily do it myself and save the money I was spending on fees.

So within two months, I withdrew everything and invested it into ETFs myself. At the beginning, I thought I was smarter than the market, so I split my money into 4 ETFs, each one covering a separate region:

  • The US
  • Europe
  • Emerging Markets
  • The Pacific

My thought process was that I would simply rebalance on a regular basis (meaning move over some money from better performing ETFs to the worse ones) and maybe outperform the market as a whole.

I quickly learned that was way too much effort and would probably lead to a worse performance, since every ETF purchase or sale comes with costs and if the one I’m selling made profit, that profit would now also be taxed right away, instead of in the future.

So I ended up switching to another strategy that you’ll hear a lot of European investors mention, only buying 2 ETFs: The MSCI World (covering developed markets in the world) and the MSCI Emerging Markets (covering emerging markets).

However, in the long-run, we made the decision to simplify our ETF investing strategy even further, only buying one index:

The Vanguard FTSE-All World (ISIN: IE00B3RBWM25).

Vanguard FTSE All-World

It covers 3.354 companies from all over the world, including emerging markets.

Vanguard FTSE All-World Allocation

We’re still keeping the MSCI World shares we already bought in our portfolio long-term, but we’re only investing new money into the All-World ETF.

Here is how much we have in each ETF at the moment, in case you’re wondering:

  • 52% of our funds are in the Vanguard ETF
  • 48% in the MSCI World

Obviously, the percentage allocation to the All-World is going to increase, the more we invest into ETFs going forward.

If you‘re new to equities and index investing and you only know P2P lending so far, you should know that ETF prices can go up or down quite a bit, so if you buy ETFs, my advice is to buy & hold long-term and don’t buy ETFs if you need to access your investment within the next couple of years.

Stock market corrections or even crashes are part of the game. Personally, I view them as discounts I can take advantage of to add more ETF shares to my portfolio at a lower price.

Vanguard FTSE All-World Performance

My lesson for anyone new to ETFs is this one:

Keep it as simple as possible. One broad, low-cost ETF covering worldwide equities is probably enough.

Our ETFs currently pay about 2,4% dividends per year. That’s around 938€/year or 78€ per month, before taxes. We reinvest the dividends right away and expect long-term returns in the ballpark of 7% per year from our ETFs.

Where to buy low-cost ETFs

Most European investors should take a look at Degiro, as the broker offers some of the lowest fees for buying stocks and ETFs in Europe.

I’m planning to create a separate video about buying ETFs soon. Maybe I’ll even show you how I buy an ETF on video. Stay tuned!

Portfolio Part 2: P2P Lending

The next position is the one you already know about, P2P Lending.

Peer to Peer Lending currently makes up 24,1% or 31.515€ of my portfolio.

For some of you, my P2P allocation might seem high, while others might have a higher percentage of their net worth in P2P lending. At the end of the day, it’s your money and you have to feel comfortable with your investments and your allocation.

If you’ve been following my monthly P2P income updates, you already know the platforms I’m invested in, but here is a little overview.

My P2P Portfolio Allocation

Platform Allocation Value Extras
Mintos 25,61% 8.071€
Crowdestor 12,78% 4.027€
Envestio 12,36% 3.895€
Iuvo Group 10,69% 3.369€ 90€ Bonus
Grupeer 9,67% 3.048€
Viainvest 4,77% 1.503€ 15€ Bonus
Swaper 4,76% 1.501€
Lendermarket 4,60% 1.450€ 1% Cashback
Monethera 4,11% 1.295€
Wisefund 4,10% 1.292€
Mintos Invest & Access 3,29% 1.038€
Bondora Go & Grow 3,25% 1.026€ 5€ Bonus
Total 100% 31.515€

The list also includes my latest addition, Lendermarket, a peer to peer lending platform that was recently founded by Creditstar, one of my favorite loan originators on Mintos.

That comes out to around 60% personal loans and 40% business loans. In addition, some of the loans I’m invested in are backed by real-estate (a few on Envestio, Crowdestor, Grupeer and Monethera).

My Investments in Crowdlending generated 319€ in interest last month, so if the trend continues, I expect around 3.800-4.000€ in passive income from P2P lending per year, which I’m also reinvesting every month.

Portfolio Part 3: Crypto…

Now comes the part that I’m the least proud of: Cryptocurrencies.

In mid 2017, when cryptocurrencies started showing up everywhere, I also got caught up in the hype and bought some. From the beginning, I knew I could lose everything, and I still think that’s the case today. As prices were shooting up, I let my emotions get the better of me and kept buying more.

Overall, I bought a total of 20.100€ worth of mostly Bitcoin and Ethereum from mid to late 2017. I want to be clear, this wasn’t investing, but rather pure speculation.

But the worst part of the story has yet to come. In December 2017, that portion of my portfolio had tripled in value, to 64.000€.

I was thinking about selling, to realize some profits, rebalance my portfolio and to decrease my allocation to a much lower percentage of 5-10%, something that I would be more comfortable with.

However, like many others, I got greedy.

I was thinking to myself: Why sell now and pay high taxes on top of the income I made this year, when we have a law that would allow me to pay no taxes on profits if I sold my cryptos after holding them for a year?

Looking back, that was the worst financial decision I have ever made.

My Crypto Portfolio

One year later, when I could have realized my “profits” tax-free, there was nothing to be taxed in the first place, as I was making losses now.

Luckily, they recovered a bit in 2019 and I’m currently close to break-even. In the end, I decided to hold on to this part of my portfolio for a couple of years.

I’m speculating we might see another bull market in the next couple of years and I might be able to sell a large portion of it at a profit, but it’s also very possible that won’t happen.

We’ll see how this “adventure ends.

Portfolio Part 4: Cash

Alright, now that I probably ruined your mood with that sad story, let’s move on to the next portion of our portfolio: Cash.

We currently have
 11,7% or 15.317€ in cash. Why so much?

Well, part of it is our emergency fund, meaning about 6 months worth of living expenses. The rest of it is money I need to have readily available to pre-pay social insurance as well as taxes on a quarterly basis, since I’m self-employed.

Portfolio Part 5: Apartment – Well, sort of…

The second to last part of my portfolio is the apartment we live in.

To make things clear, we don’t own the apartment, we’re just renting. But in order to get our awesome one-room apartment, which gives us a lot of freedom because of the low rent, I had to pay around 15.500€ when I moved in a couple of years ago.

That amount decreases by about 1% every year that we live here and is currently worth around 14.980€ or 11,5% of our Portfolio.

We’ll get that money back if we decide to move out, so I included it as part of our assets.

Portfolio Part 6: Invoices

And finally, we have unpaid invoices, making up 9.631€ or 7,4% of our portfolio.

This is yet to be paid business income that we earned during the past couple of months working on some larger projects. We should receive most of it within the next 4-12 weeks.

There you have it, that’s our current asset allocation.

As of late November 2019, our Portfolio is worth a total of 130.609€, give or take.

I know many of you want to hear more specifically about ETFs, so I’ll make sure to create separate content on the topic before the end of the year.

  • I’m very interested in your asset allocation as well, if you’re willing to share. In case you don’t want to disclose everything – How much of your portfolio (in %) do you currently have invested in P2P lending or ETFs?

I hope you enjoyed reading through my detailed portfolio breakdown!

If you made it this far and you’d like to support me, you can do that by…

  • using any of my links to test out a P2P lending platform for yourself
  • or by opening a Degiro brokerage account to buy stocks and ETFs.

Other links you might be interested in:

Video of the article

Disclaimer: Investing involves risks of losses. You should always do your own research before investing into anything.

12 Comments

  1. Hi Angelo!

    Your posts are really inspiring! We all appreciate your openness and your genuine tips!

    Greetings from Greece!

  2. Hi Angelo,

    Thank you for sharing your portfolio information,It’s helping me a lot and make me each day more motivated on my digital investor path.

    See you.

  3. Hello there. I am recently investing in stocks. Your investment in etfs attracted my attention. By what means do you buy etfs? Some brocker? Who is holding your assets – purely technically. From which market/borse do you buy?
    Thanks

    1. I currently buy my ETFs with Flatex, an Austrian broker. If we move to another country in Europe, I would probably switch to Degiro, as they seem to have the lowest fees.

  4. Thank you for your approach and openness to share your “personal” experiences Angelo … even the bad ones.
    I find it very interesting to compare and contrast to my own approach and errors. And, I have tweaked my approach a bit after reading a few lines of wisdom in your blogs 🙂

    1. Thank you Colin! All the feedback I received (including yours) confirmed to me that it was definitely the right decision to be transparent about all of it 🙂

  5. Hi there, I started out with cyptocurrency & mining but just as you I wasn’t very lucky at making huge profits. I never calculated after all, anyway, I have about €300 worth of cyrpto right now. Not considering it in my portofolio. :).
    I started with Gimme 5 (1000euro), after expriencing losses, 2 years later I got money back with 0 loss (only depreciation, haha). Good, now let’s get to success stories and forget failures. 🙂
    I am 36 now and 10 years ago I was completely broke: empty bank account, no assets at all.
    I currently live the way I want to, I have a car (cheap though) and I spend at least 7-8k/year on vacations and fun. :). I will not talk about properties & rent etc. I have a yearly income from my job that varies from a minimum of 27k net and up based on performance, I hope to get 5-10k extra this year.
    Here are my current assests: €36.710
    Cash – 9k – aprox 25%. (3k will go to Flender from CC, but I expect at least 4k of income next month).
    Housers – started at 10/2018: 12k. December performance: 9,8%. Past 6 months average: 8,1%. Money blocked in some projects (about 3k). Half of the portofolio is pretty liquid. Looking to descrease to 10k but I just love this platform (and really trust them, despite some “bad” projects, but its part of the game – recently things are much better with safer projects – they have learnt a lot!).
    Bondora GO&GROW – 7,96k. Started with Normal investments but I couldn’t figure out how to make profit, risk was high and it was sooo time consuming. People running scripts were having huge advantage and I couldn’t figure out how to use it myself. So with a small loss of €4, I switched to GO&GROW on 01/11/2018. 6,6% profits and zero time to waste. Great deal for me until I find something better. :). Looking to move part of the money to a more profitable platform.
    Mintos – 5,6k + 1,15k (in KZT). Hard to calculate actual return rate as I have deposited every month, made some mistakes with I&A (have €125 in Monego). I sometimes had money sitting there as I was busy travelling, exchanged back and forth from RUB, MXN and KZT. Testing things out and learnt a lot. Very happy with Mintos now that I have learnt LO risk. For the last 30 days (thanks to buy back campaign and a lot of time spent on the site), my return was around 17%. Of course, everything should be back to 12%-ish for the long run.
    Flender – 3k – started yesterday.
    Next step in Februry: swith some money from Housers and Bondora into other platform (Crowdestor maybe, currently studying).
    So, why Housers and Flender? Both are outside of Estonia, so they are very good for portofolio diversification. Mintos and Bondora are some “old” and very popular platforms. I prefer safety rather than huge returns (20% with buyback guarantee for me it’s to good to be real! This is why I stayed away from Kreutzal and Envestio and did not even consider them).

  6. Hi Angelo,

    I really appreciate you sharing your personal journey towards financial freedom ????

    I totally agree that a single ETF approach is all you need (for that share of one’s portfolio).

    To this regard, have you considered a world index ETF based on a momentum strategy? It is one of the few strategies that, statistically, has outperformed the index. I’ve recently invested on an ETF tracking the MSCI World Momentum Index (iShares Edge MSCI World Momentum IE00BP3QZ825). I would like to know what you think.

    For the rest, I’m also a big fan of P2P investments, let’s see how the sector will get out of the pandemic… finger crossed!

    1. Thank you Luca! I think factor strategies (like Momentum, Small Cap, Low Volatility etc.) are very interesting, but I would personally use factor ETFs only as an add-on, while keeping most of my money in a broad market ETF. But that’s just my personal choice, based on me not being able to predict if past out-performance of specific factor ETFs will repeat itself. The ETF you mentioned looks good to me for a momentum strategy!

      Yeah, I’m hoping we all come out of it stronger! What’s for sure is that nobody will be able to say P2P hasn’t been through an economic crisis any more!

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