To VWCE or not to VWCE?
Sorry for the unstructured explanation, hust dumping all my thoughts.
Hi, I need advice on how to handle the savings I have build up.
Context: Non-EU couple (33M and 31F) from humble backgrounds. We always had just enough growing up and never extra. So it is really difficult to judge how much risk we can afford to take.
I believe in ETF and chill theory while it took my wife some time to accept it. Which means in the meatime I have more money in savings account than in ETF.
Bank accounts: 250k mostly in raisin earning 3%
Investment: 45k (35% S&P, 25% EU 600, 25% home country, 15% emerging markets). I add 1k€ each month on same since 3 years and 500€ on VWCE since last year.
Now, we are thinking of investing the cash balance in an assest which provides better return than 3%. One idea was also to invest in a property, but the taxes and effort to find and maintain it, demotivates us.
Second idea is to put in VWCE. I feel the market is too high right now, if I put all my money in it right now and it crashes. It will kill my savings. I cannot imagine it taking 10 years to come back to 0 gain. On the other hand, if the makret grows 20% and then falls, I am less impacted but I cannot predict this. If I wait for this fall, who knows how much the market can grow before and make my money worth less due to inflation and lost opportunity.
Smart move could be to do 10k each month for the next 24 months. But I do not know if this staggering is enough risk averse or so.
Also, is there a possibility US goes to shit and we lose all our money? Since 50%+ VWCE is US stocks. I feel a property will be yours even in case a worst case. The stock market is just numbers on some server which might not be worth much in case such a scenario.
So want to know your opinion how to move from here?
P.S. Portfolio - 250k cash & 45k long term ETFs. What is the best way to move the cash from back accounts to investment? Is it too risky to dump it all in VWCE given the world?