Investment Portfolio

My investment portfolio, or war chest, is what’s enabling me to fire the boss and be financially independent.

As you can read in the article about my investment strategy, I have split my portfolio 50/50 between cash savings for a deposit on a rental property and a low cost index fund portfolio.

The investment portfolio is super simple:

PortfolioNameTarget AllocationCurrent ValueCurrent Allocation
Stock PortfolioVWRL45%15,90045.7%
Real EstateReal Estate Equity50%049.3%
Cash Savings17,160
Total investments34,780100%
OthersCrypto (several coins)-12,500-
Total including others47,280

Not included in the portfolio are my emergency fund and the short and long term savings (i.e. for a holiday, or laptop replacement).

ETFs in my Investment Portfolio

Currently I only invest in the ETFs VWRL and IUSN. They are index funds in world wide equities. VWRL invests in large and mid cap companies where IUSN offers me small cap exposure.

In my article on investing in ETFs and other products I go in detail on how this works.

The reason I only invest in these funds is that they offer me exposure to the world wide equities at a reasonable cost. Even better would be a portfolio of roughly 50/50 or 55/45 of VTI and VXUS. Unfortunately, these index funds cannot be bought anymore within Europe.

Problems with Cryptocurrencies

Obviously cryptocurrencies are a way too high percentage of my overal net worth. I don’t really have a strategy with them, other than some small trades here and there. I will sell off some if and when the prices rise again.

Potential Portfolio Improvements

I am thinking about potential improvements to this portfolio. Primarily I want to reduce the cash drag in the real estate part of my investment portfolio.

Maybe I will invest that money in some less volatile, dividend yielding ETFs and bonds. I know it opens me up to principal value risk, but it also reduces the cash drag. When I invest in funds that have regular dividend and interest payouts I should be able to preserve capital.

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