International Lifestyle: Flexible, currently not planning to relocate but if some specific situation happens, I might (probably to easten/nordic europe)
Currency: EUR
Emergency funds: 6 months
Debt: no debts
Age: 35-40
Desired Asset allocation: this is part of my question
Desired allocation to stocks outside your of country of residence: Only ETFs
Mid five figures
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Current retirement assets
General investment account, taxable
80% of ETF
- 70% IWDA
20% EMIM
10% IUSN
- 100% EUNA/AGGH
If you are currently investing into these accounts, it may help us to have an idea of how much you invest annually. As above, if this section does not apply to you, or if it does but you do not want to share this information, please ignore this section.
New investments
I am not sure about it, I am about to buy an apartment so I might not be able to invest for some time.
Otherwise maybe 20k per year.
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Questions:
1. My questions is mainly regarding the bonds. I am no expert in investments and I have read about the easiest approaches to it which were ETF.
As I understand ETFs are already balanced and diversified so the risk is way lower than single companies stocks (even less rewards, but I am fine with it). I also diversified among ETFs, having a world index, small caps, and emerging markets.
To make it even safer, I understood to counterbalance the ETFs with some bonds. If I understand correctly, when the market goes down, bonds should go a bit up, compensating your losses (at least part of it). I started investing in March 2020, since then the market had a trend downwards, but the AGGH index didn't actually have a good performance at all.The last months, despite the market is not skyrocketing, it seems that the bonds went down quite a lot.
So my question is what should I do with it? Keep it for long term, sell with a loss and reinvest in a more aggressive ETF?
Also, are my assumptions about how the bonds/etfs work good?
Thanks in advance