Investing should be for the long term. 10 years or more. I would look at the performance over the long term and not focus on the short term. Would you rush out and sell your property because the property market falls or hold onto it for the long term?about increasing equity, I am a bit worried as this asset have sometimes 70% crash, I even have to force myself to consider 40% allocation
Focusing on short periods of time when investing in equity will make it feel more volatile and uncomfortable. Focus on long periods of time, it will feel less volatile. Vanguard UK - Why investing isn’t as risky as you might think
Holding a diversified portfolio of stocks and bonds will help to moderate the portfolio's ups and downs.
Maybe consider a two fund portfolio. These are UK examples, you probably have access to EU versions. I'd hedge the bonds to your local currency not GBP. There are more options on the EU Investing page.
Vanguard FTSE All-World UCITS ETF (VWRP) - 60%
VanguardGlobal Aggregate Bond UCITS ETF (VAGS) - 40%
Vanguard and other providers have wrapper funds which hold many other funds. Maybe one of these would make you feel more comfortable and reduces the decision making. LifeStrategy® 60% Equity UCITS ETF - (EUR) Accumulating
I would avoid constructing a portfolio to deal with edge cases. The chances are the portfolio will underperform. The edge cases may never happen. A simpler portfolio will be easier to manage and help to keep the costs down. Costs, even small costs add up over time.
Ultimately you need to be comfortable with the portfolio so that you don't sell when bonds or equities fall. It will happen, but they will recover. It takes patience.
Consider writing an Investment Policy Statement for yourself. Maybe allow yourself to look at your portfolio at set dates every year. Maybe once a quarter and a set date to rebalance once a year when certain criteria are met.
You want to avoid reacting to noise or sudden changes. Not looking at the portfolio apart from set dates in a calendar will help.
If it makes you feel more comfortable you could have 3 to 5 years of spending in short-term government bonds then a year in cash. That way you know where your spending for the next few years is coming from. That should be enough time to ride out the worst of markets falls.
I don't know enough about the tool you are using to comment. Maybe take a look at the sample portfolios linked in the EU investing page and try them out in the tool you are using.If I plot the portfolio it seems I should be good in any situation with 2% withdrawal rate, and gold seems to increase the "protection" on that limiting worst cases ?
Gold Spot Price The period between 2012 and 2020 would have probably resulted in a real loss.
Gold [Vanguard's Gold fund as an investment] is a thread on the US board about gold which may be of interest.
I would want to take a look at some of the holdings to better understand what the fund holds. Look at the credit ratings and the duration. Some EU government debt is BBB. Longer duration bonds are likely to be more volatile. Maybe search on the board for EU bonds.We have a Euro inflation linked bonds funds : https://www.justetf.com/en/etf-profile. ... 00B0M62X26
Do you suggest to hold some of that, the issue seem it's so heavy in only one country
I'm not sure how well this fund would work as a substitute for equity to protect against inflation. If I was 40 and the portfolio had to last 60+ years I'd be inclined to hold a 60/40 global equity / global bond portfolio.
Statistics: Posted by Maple2 — Thu Dec 11, 2025 1:18 am — Replies 3 — Views 533