I have donated around 10 % of my total earnings, and plan to make annual donations which keep my target savings equal to 6 times the global real GDP per capita once I reach them. I currently distribute my savings roughly as follows:
The goal is having decent returns, but with simplicity and resilience to risk. For greater returns, I would invest in S&P 500 or an ETF with tech or AI companies. For greater resilience, but also more complexity, there is the permanent portfolio.
6 (= 2*(1 + 0.5)*2) times the global real GDP per capita is enough for 2 years without any income, with 0.5 dependents, and with 2 times the global real GDP per capita per person per year, which means I would still be in the 97.5th income percentile.
Hi Nicholas,
I have donated around 10 % of my total earnings, and plan to make annual donations which keep my target savings equal to 6 times the global real GDP per capita once I reach them. I currently distribute my savings roughly as follows:
50 % in the bank (cash).
25 % invested in Vanguard FTSE All-World UCITS ETF USD Dis (global stocks ETF).
25 % invested in Vanguard Global Aggregate Bond UCITS ETF EUR (global bonds ETF).
The goal is having decent returns, but with simplicity and resilience to risk. For greater returns, I would invest in S&P 500 or an ETF with tech or AI companies. For greater resilience, but also more complexity, there is the permanent portfolio.
6 (= 2*(1 + 0.5)*2) times the global real GDP per capita is enough for 2 years without any income, with 0.5 dependents, and with 2 times the global real GDP per capita per person per year, which means I would still be in the 97.5th income percentile.