It has been a while since I wrote about my little bothers pension portfolio. After I convinced him to put away 15% of his income for this pension, it is now time for me to slightly optimize his portfolio to a Boglehead non-US one.
Current, there is not a lot in the portfolio, approximately 1.9k EUR that I want to split as 60-40, but with a 100% focus in stocks, instead of the usual Boglehead split. My brother is 24 years old, so there is still a lot to go on, let’s say 41 years until his retirement, thus the risk of a 100% stock portfolio at this age is low today.
What matters is that the following rules are followed:
- Accumulating
- Index funds
- Passively managed
- Low cost
- Diversified
- Simple
This is why, from the current configuration of his portfolio:
| Symbol | Value EUR | % |
| MEUD | 334 | 17.04 |
| ROBE | 395 | 20.15 |
| SXR1 | 273 | 13.93 |
| XCS6 | 393 | 20.05 |
| Cash | 565 | 28.83 |
I am changing it to something like the one below and aiming to adjust it to these percentages as the year 2021 moves forward on a quarterly basis.
| Symbol | % |
| SWRD | 60 |
| EMIM | 10 |
| IUSN | 10 |
| ROBE | 10 |
| XCS6 | 10 |
| EUR | 0 |
Looking at this and moving further, I hope I make the best decision for my little brother and if you are asking me why he is not the one making it, then, really I do not know why. He is young and not interested in the financial aspects, but I am trying to push him to at least be safe when he retires as we cannot trust our government to provide for us, even though we pay 25% of our income to the national pension fund while we only get 25% of what we paid back at retirement…