In the past my index portfolio consisted of both stock and bond ETFs. I used to follow the age – 10 rule for the bond part. So at 25, I would have 15% of my portfolio in bonds and 85% in stocks. However, I decided to remove bonds from my portfolio entirely. You can read my complete investor’s policy statement here.
As a person looking to become financially independent and fire my boss, I’m always investing my money. As soon as it enters my bank account, I assign every euro a job, and a lot of it goes to my investments. This is my investment strategy to become financially independent in Europe.
Investing, that’s not for me, you might think. Or maybe you don’t believe in the value it can bring. This article is an introduction to investing in stocks and bonds, and also covers index funds and index tracking ETFs. Those can be used to invest in a broadly diversified portfolio.
A lot of people that just started investing their spare cash wonder how to make more out of their money. How they can make higher returns. I’m in that same categorie. But it really doesn’t matter that much what your returns are in the first year or two. It is way more important to focus all of your energy on just saving more. Here is why: