Defining an investment strategy (asset allocation) for a young person [Spain]

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vilaor
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Joined: Wed Aug 17, 2022 3:50 am

Defining an investment strategy (asset allocation) for a young person [Spain]

Post by vilaor »

Hello everybody,

This is my first post in this forum and first of all I would like to present myself and thank you all for your help and contributions. I'm 27 years old and very interested in the Bogleheads investment philosophy and I would like to start my investment jouney in order to increase my money, get a better economical position and make my patrimony the biggest as possible, all this with time, obviously. I'm NOT US citizen, so I know some things differ but here I'm more concerned with defining an investment strategy for myself or any young person in the same situation.

My current situation is the following. I've finished studying and I started working 4 years ago. Now I'm 27 years old and I live in a rented house. During this time I have saved money and I also started to make some periodic contributions to some indexed funds (S&P 500 and EURO STOXX 50). I started doing this by recommendation of my parents and also started reading forums like this one and resources about the topic. Now, I would like to define a real and serious inversion strategy to follow in the future.

My main concern is the asset allocation, with this meaning the percentage in variable and fixed return that I should choose, because I plan to buy a house in the next years, around 2 years from now. So, I know it could be possible that I need some or all of this money for buying a house. I guess I should be very conservative because I can't afford losing part of this money, let's say 30%, because this would make me depend on a mortgage. I guess avoiding the mortgage would be important as I wouldn't have to pay for the interests (all this supposing that the interest rate isn't low), am I right?

So, what should be my investment plan?
Should I stop investing and only saving for the moment I decide to buy a house?
Should I make a conservative asset allocation (bigger percentage of fixed returns) while waiting to buy the house?
What would be intelligent decisions apart from the topics I'm concern based on my situation?


If there are some resources or previous questions in similar situations I would appreciate to point me to them.

If something isn't clear or need more info I would tell without problems.

Thanks for you help in advance.
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LadyGeek
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Re: Defining an investment strategy (asset allocation) for a young person

Post by LadyGeek »

Welcome! I moved your thread to the Non-US Investing forum. What is your home country?
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Siaigi
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Location: Italy

Re: Defining an investment strategy (asset allocation) for a young person

Post by Siaigi »

One of you advantage is age and the compound interest.

So if in two years you think to invest what you save till now you loose this six years.

I think, if possible, you should differentiate the two targets.

You keep some regular contributions for your long term and you will use another savings to buy the house.

if you are a good manager of your money, when you’ll buy the house, you may find yourself a remaining nest egg to invest in your long-term investments.
Topic Author
vilaor
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Joined: Wed Aug 17, 2022 3:50 am

Re: Defining an investment strategy (asset allocation) for a young person

Post by vilaor »

LadyGeek wrote: Thu Aug 18, 2022 11:46 am Welcome! I moved your thread to the Non-US Investing forum. What is your home country?
Thank you!

Spain
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LadyGeek
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Re: Defining an investment strategy (asset allocation) for a young person [Spain]

Post by LadyGeek »

¡Bienvenidos! I have added Spain to the thread title.

May I suggest you join our brother Spanish forum and ask your question? Foro Bogleheads® España - Inversión Pasiva, Indexada y Periódica

Disclaimer: I am a member of both forums.
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