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This website does not provide professional advice, the information on this site reflects personal opinions and not investment advice. You can lose (part of) your investment.

Grow a Money Tree

We are growing a money tree on our balcony. It will stay, grow, and produce money throughout our life.

Sounds too good to be true?

The tree consists of investments in the widest possible proportion of internationally accessible listed shares (in relation to the marketcap). To strengthen the tree, we also invest in global government bonds hedged to our local currency (€). And all at the lowest possible cost.

We first structured our family finances, and analyzed our current and future expenses to determine how much we can set aside monthly. We only invest money that we won't need coming 10 years, even if our situation would change unexpectedly. This strategy works when you are slowly saving, or received a windfall.

We harvest a maximum of 3% of the invested value, OR 3% of the total portfolio value of our tree per year. So when we have invested €50.000 in the tree, we harvest a maximum of €125 per month (regardless of the state of the stock market), or more when we need the money and the portfolio value is higher.

If we manage to invest €1.000.000, we would get a €30.000 yearly income from the “tree”.

Basic steps

  1. Sort out your general finances
  2. Open an account with a broker
  3. Buy the suggested portfolio
  4. If available add funds monthly according to the asset allocation
  5. Don't actively rebalance by moving already invested funds
  6. Grow your tree and harvest periodically when needed

Why we share this information? We wish for everyone to have an option to grow such a tree, big or small. This website does not generate any income. There are no advertisements and / or affiliate links. Feedback is appreciated.

start.txt · Last modified: 2020/08/23 20:11 by dreas