Why the first 100.000€ is so hard (and the next easy)

[@AngeloColomboFi]

What financial milestone are you working on right now? 🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr 🇪🇺ETFs, bonds + 4% interest: angelo.fi/trep 👉Compare ETFs: angelo.fi/comp 📌Esketit (P2P): angelo.fi/esk 📌Mintos (P2P): angelo.fi/min 📌Income (P2P): angelo.fi/inc 🏠Current P2P Deals: angelo.fi/p2p ⚡Where I buy Crypto: angelo.fi/bit 📈I track my ETFs here: angelo.fi/getq 🇦🇹🇩🇪Germany & Austria only (ETFs): angelo.fi/atde

[@ErinMacri]

I am about 8000 shy of my first 100K. I should be there by February!

[@AngeloColomboFi]

Nice 🥂 thanks for sharing!

[@Ciulaman]

Started 1.5 years ago investing. Started really small with some mutual funds at a local bank. After a while, did some more research, found about ETF and then your channel, which helped a lot. This month marked the first in which I bought my first ETFs. Thanks again for your work.

[@AngeloColomboFi]

I appreciate you sharing that George! Nice, I hope you're not discouraged by the market turmoil over the past few weeks :)

[@Ciulaman]

@@AngeloColomboFi Not at all. Buying when the market it going a bit down only means a better outcome in the long run, when everything goes up again (hopefully 😂)

[@Retrobom57]

i love this channel and you're honesty. Nice to see someone who tells you everything you want to know and not telling them to join there "Masterclass" and then ask you 1000€ to tell you exactly the same you do. Great job keep it up!

[@sossaipsico]

Hey Angelo, very nice to see someone concern about others! I really like your content, I was constantly looking for this kind of material, and you are spot on! Keep up the good work.

[@AngeloColomboFi]

Thank you!

[@bernardlynch5226]

In my taxable account, I went the dividend investing route. In my Roth I did the buy and hold route with an S&P 500 etf and a total market etf along with some Berkshire B stock and SCHD.

[@AlFakherFan]

I follow you long time. Maybe one of the best of your videos but I should also consider EUR/USD chaging rate all the time, EUR exsistence in the long term (Dont forget that Euro was only created at 00's - not so long ago, there is no guarantee it will exist next 20 years) Thank you very much for sharing and good luck!

[@AngeloColomboFi]

Thank you, I'm happy to hear that! Exactly, one more reason to invest in productive assets like stocks/ETFs instead of only holding cash, as these protect your wealth from inflation and changing currencies long-term :)

[@PecinoTube]

Hi Angelo, aren't you afraid that the ETF's are not hedged against exchange rate changes eur/usd? I mean there is high possibility that Euro gets stronger against dollar in the next couple of years, since it sits on historical lows at the moment.

[@AngeloColomboFi]

Not really, hedged ETFs are not worth it anyway if you look at their abysmal performance (way worse than the higher fees alone would suggest). I don't have a crystal ball regarding EUR/USD, but to be honest I'm more worried about the Euro's future than the dollar. Either way, by holding stocks from all across the world we have some currency diversification.

[@cybermewt]

One thing to consider though (and I didn't hear it being mentioned) is that the 22k/year he talks about at the beginning after 300k invested, is before taxes and whatever % or fee does the platform get. So those 22k/year, after taxes and on a monthly-basis are like 1.350€/month for two people which if you both have jobs and costs covered is great. Another complete different story is living out of those 1350€, without any other source of income. Having said that, great video. Trying to get into this world myself, also based in Austria and quite worried I'm gonna end up losing most of my money in fees, ETF crashes and taxes. But your videos really help :)

[@AngeloColomboFi]

True! Since you're also based in Austria, you might enjoy this video where I talk about taxes and social insurance once retired: kzbin.info/www/bejne/mJC3iaRvfZ2jqLM

[@benjaminkomjathy]

I've bypassed the 100.000 long ago, the problem is, in HUF 😂

[@yomismo1888]

"HUF"? What it means?

[@vincewoo3415]

Currency of Hungary?

[@axelvnk]

HUngarian Forint

[@pistopitpit]

@@vincewoo3415skateboarding brand as well 😂

[@VisualAIntelligence]

😅😝​@@axelvnk

[@HypaxBE]

Any thoughts / upcoming vid's covering bond ETF's? As right now bonds are interesting with decent return while at fairly low risk. I personally see it as a nice alternative for short term, mid term investing because many stock ETF's have remained neutral for 2 years now in terms of value.

[@AngeloColomboFi]

I mentioned bonds in my recent video about Trade Republic, if you live in the eurozone they could be an easy option: kzbin.info/www/bejne/oZvSl2uhoduYp8U

[@ericjonathanpaglia552]

Ciao Angelo, nice video and different from usual. One feedback is that in addition to the rate of return you should also consider the inflation rate that can impact on your investment over time.

[@AngeloColomboFi]

Thank you Eric! That's true, just didn't want to make the video too long. The backtests on Curvo are a good resource as they have a section comparing nominal returns with real (inflation-adjusted) returns: curvo.eu/backtest/

[@softshore]

I am starting investing in ETFs but I am paralyzed with the choice, specially between accumulating and distributing ones. What happens if I want to change in 5-10 years? I feel like dividends would be better mentally speaking since I don't need to take the money off in the future, but I have no idea what to choose now and I feel like I am losing a lot of time.

[@AngeloColomboFi]

These two videos might help :) kzbin.info/www/bejne/eardqp1jgJuIZs0 kzbin.info/www/bejne/mnfPaH6DgdGahbc

[@AECH_CH]

This isn't something that should paralyze you - choose a broad diversified world ETF and if you're unsure, I'd say jsut go for distributing - you can always switch up and buy the acc. version if you don't need any dividends. It's also not clear to us how taxation will change in the future, so we simply don't know. Not investing however is costing you more money than the minimal tax optimization of acc. vs dist. funds.

[@alarud]

Thank you, Angelo! You are my number-one financial expert!

[@AngeloColomboFi]

Thank you so much Valentina, hearing that means a lot!

[@Fr3Dastik]

Great content, subbed ! I've just purchased my first ETF after watching this video, thank you ! I have a quick question : is Revolut a good platform to buy ETFs (I used Revolut for my first purchase for its ease of use) or should I stick to traditional brokers ?

[@AngeloColomboFi]

Thank you! From what I read, Revolut charges a 0,12% custody fee and most likely you won't be able to transfer your shares to another broker. I'd stick to Interactive Brokers or Trade Republic instead: kzbin.info/www/bejne/anOTZpWuaNV7ipo

[@Alexander93432]

Cool video Angelo, been following you for a little while now. Keep up the great content 😁!!

[@AngeloColomboFi]

Thank you Alexander!

[@martinwm]

I got my first 100k in BTC, and felling safe for the forseeable future. Personally Im picking higher return single stocks now and some solana

[@stevietwotwo]

Great video again, makes me lean towards ETF as core even more

[@AngeloColomboFi]

Thank you! What was your core position so far?

[@hugomendoza3380]

Hi Angelo, do you have any recommendations regarding AI ETFs, both in USA and China? Thanks.

[@AngeloColomboFi]

Not really, but if you want to increase your exposure to AI in the US you could do that by buying more US tech companies via a Nasdaq 100 ETF

[@yannispoulakis7453]

Hey Angelo, thanks for yet another great video! I am using TR and Degiro for my ETF investment but none of them seem to have good reporting tools to measure performance. I see you are able to see detailed performance (per month, per year, average, etc) like the ones you show in this video. Is this part of Interactive brokers or are you using another platform to monitor your portfolio performance overtime?

[@AngeloColomboFi]

You're welcome Yannis! I'm using Getquin: angelo.fi/getq and Portfolio Performance: www.portfolio-performance.info/en

[@ercansavci3647]

@@AngeloColomboFi it would be great if you can make a video on portfolio performance. I tried using it but I find it complicated.

[@LilMartyFarty]

Where find this backtest program?

[@DottorNi]

Sicuramente ci avrai già pensato, ma a questo punto potresti anche arrivare a superare i 500k che vi eravate messi come obiettivo e salire a 700k oppure al milione per il vostro FIRE. In ogni caso i tuoi video sono veramente interessanti (oltre che fatti molto bene) e sinceramente sto pensando di provarci pure io. Grazie ed alla prossima!

[@AngeloColomboFi]

Grazie! Certo, alla fine siamo ancora molto giovani e finché facciamo un lavoro che ci interessa, non sentiamo l'urgenza di finire il prima possibile. Cmq è bello avere l'opzione tra un paio di anni se tutto va bene.

[@crtko40]

Hey Angelo cool channel. What about buying a rental property? I think this is a better return on ur investment then stocks. As the property market is appreciating around 8% per year here in slovenia plus you can make some extra rental income if you rent it out... Take care.

[@AngeloColomboFi]

Thank you! Real estate is not necessarily a better performing investment long-term, many people forget all the extra costs associated with it (and the extra risk in most cases by taking on leverage via a loan) and the fact that it's a small side hustle actually, not a fully passive investment like ETFs.

[@cristiancristiandragan3129]

I realy don't understand what are you talking about. How do you compound the growth of the ETF? You should only compound the dividend gains.

[@whispie.]

I wish I had been old (and educated) enough during the last 15 years to have invested in the stock market... Let's hope the long term trends continue

[@AngeloColomboFi]

I think most of us feel that way :)

[@ericjonathanpaglia552]

The best moment to invest was twenty years ago. The second best time is today. 😉

[@whispie.]

@@ericjonathanpaglia552 statistically, yes. Realistically, maybe not. Someone could've said the same in 2007 and the results would've been catastrophic within the following 5 years

[@AngeloColomboFi]

Well, if you had invested everything exactly at the market top in October 2007 and stopped investing after that,, it would have taken you about 5 years to break even again. Unpleasant yes, but catastrophic? Just look at the years that followed: curvo.eu/backtest/portfolio/iwda--NoIgkg6gIggiA0xRgKIAY0CEAsAZArAJoCcAHAMwICMAunUA?config=%7B%22withTer%22%3A%22false%22%2C%22periodStart%22%3A%222007-10%22%7D That's why ETFs should always be treated as long-term investments, with a time horizon of at least 5 years, ideally 10 years or more

[@figolucas]

Your content is amazing! Thanks for sharing.

[@AngeloColomboFi]

Thank you, hearing you say that makes me very happy! 🙏

[@jonlang5747]

Thanks for another great video! Currently my bank offers around a 6 %p.a. savings account and recently handing out a bonus 3% at the end of the month, not guaranteed. I keep a emergency fund there and additionally some more cash, which I could use in my ETF. What is the better decision? Take the 6% + possible bonus, or invest in ETF (FTSE)?

[@AngeloColomboFi]

My pleasure! Wow, which bank is paying 6% (deposit guaranteed) and handing out bonuses? Long-term I would always pick ETFs, but if you just need to park cash for 1-3 years and can't afford market corrections or crashes then that offer is hard to beat if it doesn't come with a catch

[@jonlang5747]

I took another look and have to correct myself. It is regularly 2.5 but nearly the end of the month they have sent a message in app rewarsing a "bonus 3%". Not guaranteed at all. It is unicredit in Czechia. I supose it would be better idea to shift more into FTSE.

[@simonspencer3108]

Nice video! You make a good point about focusing on increasing your earning power when you are early in career! That is the most powerful way of generating wealth over time in my opinion… Get more early and invest it for longer!

[@AngeloColomboFi]

Thank you Simon, I'm glad you agree!

[@Slanderer_]

Good job on your videos!!! Have you connect ibkr account to getquin? Is considered safe?

[@AngeloColomboFi]

Thank you! I haven't, I usually add my purchases to Portfolio Performance and then import the CSV files in Getquin. I'm sure connecting the account would be fine as well, I've just been doing it like this since the start.

[@ana-and-aljosa]

Thanks for the informative video! May I ask you how you structure the investing together with your wife? Do you have seperated accounts or are you putting it together into the same account? If it is the second, hwo do you handle this tax wise? Are there some brookers that allow "couple investing" out of the box?

[@AngeloColomboFi]

My pleasure! We have separate accounts since we're taxed as individuals anyway here in Austria - married couples don't have a benefit in that regard

[@llms_react]

As your salary approaches 100k, your tax rate goes up to the maximum, so that eventually your marginal rate is about 50%

[@coreyagius8752]

What is a good High Yield Savings account available in Europe(Malta) because i tried Trade Republic but they are not available in Malta yet

[@AngeloColomboFi]

You could look at some of these alternatives: kzbin.info/www/bejne/gmjYgqV5Z5lmoMU

[@coreyagius8752]

@@AngeloColomboFi thank you for the quick response ❤️

[@TijlDaelemans]

No fan of the 4 year cycles thesis in Crypto? Good timing on taking the profits 😁. Another nice video. Keep up the good work 💪

[@AngeloColomboFi]

Well, it's not like I timed it perfectly or didn't think prices could increase a bit further, so a good part was still riding it out since then 😅 Thank you!

[@MD0886]

how are accumulating ETFs taxed in Austria? I know in Ireland you're taxed on the increase of your portfolio every 7 years or so, even though it is unearned income.

[@AngeloColomboFi]

You still have to pay a small amount of tax every year, with Vanguard ETFs (the most tax efficient based on my research), it ends up being a bit less than the tax you would otherwise pay on paid out dividends. Luckily it's nowhere near as bad as Ireland, that system just makes no sense to me :/

[@MD0886]

@@AngeloColomboFi I need to move to Austria! 😃 so just reviewed the details, in Ireland you'd pay 41% tax on the increase in value of your ETF on the 8th year anniversary of your purchase, whether you sell it or not... and if you've been investing regularly every month, you have to pull your calculator every month after 8 years... 🤦🏻‍♂🤷🏻‍♂ unless, that is, you sell your investments before 8 years, which beats the purpose of long term investing...

[@mircea_h]

@@MD0886 Sounds terrible ! I can only hope Europe does not go too much in that direction, though at this moment this is what is happening. Just do your math on different classes of asset types. I am pretty sure if realestate doubled in value every 8y, you do not have to pay 25% of you property value in tax every 8y, right ? :) As somebody said, few things in life are certain - death and taxes..

[@josebalvin899]

Does 7 percent return of vwce includes dividends?

[@AngeloColomboFi]

Yes

[@reapzvanreapz9687]

I had a 100.000 but the last 2 years it feels like I’m poring money in to nothing. I invest every month but because of poor stock performance I’m still just shy of a 100k. Pfff i guess we just keep on going 😅 more focus on etfs

[@EnjoyPlantPower]

I convinced my wife to start an etf for our child rather than just leave the money in a 0% bank account and it’s currently performing at -2.5% She’s not impressed 😅🥲

[@AngeloColomboFi]

Yes, the last two years have definitely been more challenging for new investors :) In these situations I recommend zooming out and focusing on the long-tern: FTSE AW: curvo.eu/backtest/portfolio/vwce--NoIgag6gwgoiA0xQEkYAY0CEDSBWTAigCoAcaCAjALo1A MSCI World: curvo.eu/backtest/portfolio/iwda--NoIgkg6gIggiA0xRgKIAY0CEAsAZArAJoCcAHAMwICMAunUA

[@Teccae]

Thanks for the informative video! 😀

[@AngeloColomboFi]

My pleasure as always! 🙏

[@jonhyjfk]

currently working to get to 100k. only 96k to get there 🤣

[@AngeloColomboFi]

At this point you might as well round up to 100k already ;) Jokes aside, you got this! 🥂

[@jonhyjfk]

@@AngeloColomboFi haha. Thanks Angelo glad i found your chanel

[@richardgarciamazzini2912]

Great video... thank you for the information :)

[@AngeloColomboFi]

Thank you, glad you liked it!

[@SeanOCallaghan0106]

Great video Angelo! I was wondering if in your opinion there's any reason to invest in bonds with interests rate lower than 4% since, at least for now, as you pointed out TR offers a 4% return for your liquid cash that you hold in your TR account. Thanks :)

[@AngeloColomboFi]

Thank you Sean! No, I think up to the 50k limit for the 4% Trade Republic makes the most sense in my opinion, since it's secured by a 100k bank deposit guarantee. Meanwhile for cash amounts exceeding 50k I would look at short-term euro government bonds issued by countries with a good rating: kzbin.info/www/bejne/oZvSl2uhoduYp8U

[@SeanOCallaghan0106]

Great u the best :)@@AngeloColomboFi

[@yomismo1888]

If you exceed the 50k of Trade Republic and you are based in Germany, there are some banks paying 4% too. Renault Bank (for the first 3 months) and Openbank and Suress Direkt Bank (both are the "direct" division of the Santander Bank) for the first 6 months.

[@vincewoo3415]

Hey Angelo, your 70% saving rate is impressive!

[@AngeloColomboFi]

Thank you Vince!

[@vascocosta7734]

0

[@unskeptable]

The truth is when you reach 6 figures, you start thinking of buying a house. When that happens, you are back at the start with zero savings ! Housing market is crazy

[@AngeloColomboFi]

True, that's what a lot of people do

[@AECH_CH]

No? Not everyone wants to commit geographically - a house is more often than not a lifestyle decision, not an investment. Also you're not back to 0, you tie the capital to your house, which gives you "dividends" in the form of saved rent.

[@InvestmentBulle]

#forever#long

[@paraskevaspsychogios2543]

❤

[@DjSeptimus]

For some reason for a very long period of time I thought you are Greek hahaha

[@AngeloColomboFi]

I love Greece, so I wouldn't take it badly ;) I'm half Italian/Austrian by the way

[@vovavoloshyn1740]

I can't imagine how difficult it was for you to find funds for investments, having a small daughter and a non-working wife))

[@AngeloColomboFi]

It was actually not that hard for these two reasons: - my wife was paid 80% of her salary as an employee for a full year during maternity leave here in Austria - our expenses remained quite low, which might change as our daughter grows up

[@sanderman0]

Given total inflation since 1994 in euros and dollars. Perhaps we should update this phrase to: "Why the first 184.000€ (or 200.000$) is so hard. (and the next easy)" Ultimately what you want is to grow the wealth number to a high enough value that its accelerating growth rate starts to outstrip your savings rate, earned income from your labour and your costs of living. When the nominal values inflate over time, we should also adjust measuring yardsticks like this 100.000 number, as today 100.000 represents a different amount of time, effort and value than it did many years ago. Since I invest in global index funds, what I would like to know and have trouble finding solid information on myself is: Are there any economists or institutions doing estimates on what will be the Compound Annual Growth Rate for the next few decades for certain regions and more importantly for the entire world economy? (real growth after adjusting for currency inflation) Will I even be able to outrun/out-invest the demographic aging problem at all, and then live a comfortable early retirement in a nice city condo which I currently cannot afford yet? Or will I see my investments go up at barely any higher rate than the costs of living? I suppose things like geopolitics, dumbass authoritarian leaders starting wars and diminishing economic integration between nations would put downwards pressure on global growth, while new technology like automation and robotics have the potential to add a lot of upwards pressure. But i find it really hard to determine how much influence each of these factors will have.

[@AngeloColomboFi]

Of course inflation is a factor, but 100k is a nice round number to this day, just like a million will always sound nice, even if it buys less compared to a few decades ago. The problem is, nobody can predict the future. All I will say is that pessimism rarely works out when it comes to investing, so I choose to be optimistic based on the past >100 years of historical data.

[@sanderman0]

@@AngeloColomboFi Yeah you're right it is a nice round number. I suppose psychology is big one here. 100k still feels like a big number even today. Great video btw. Keep up the good work! You'll help out a lot of people. I wish I would have seen a video like this about wealth compound growth many years ago when I was in school learning exponential functions. Maybe if I had I would have liked math more and might have started investing 12 years ago instead of 4 years.

[@AngeloColomboFi]

Thank you, you saying that makes me very happy!