Alexander Baetz is relying on a savings plan. Getty Images / Torsten Asmus
Alexander Baetz is 27 years old and has a six-figure portfolio. When he began his dual studies, he took his first steps on the stock market.
The Freiburg resident focuses on ETFs. The more knowledge he accumulated over time, the simpler his strategy became, he says.
In the beginning it is important to follow a structure, says the young man. In an interview with Business Insider, he reveals five tips that you can use to create a suitable savings plan that will advance your portfolio.
Growing up in the middle class, Alexander Baetz has already built up a six-figure portfolio at the age of 27. “My parents taught me to live frugally. “That shaped me,” says the young man. He has been investing his money in the stock market for almost ten years using a savings plan.
His mother worked part-time at a dentist’s office. His father worked at a bank and in a way passed on his son’s interest in finance. “He’s good with numbers, but I haven’t been able to convince him about ETFs yet; “He tends to stick to stocks,” says the Freiburg resident with a smile.
He’s wired differently. “I invest almost all of my private money in ETFs, with a little gold and crypto for diversification.” The big advantage of the funds is that they require little time and energy compared to individual stocks. “I benefit from the capital market without having to check my portfolio and make decisions every day.”
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I’m 27 years old and my portfolio is six figures – but my stock strategy is totally simple
Historically, ETFs have had an average return of seven to eight percent. They are also cheaper than “actively managed equity funds with higher costs and poorer performance,” says Alexander Baetz. He is investing for the long term and will not be dependent on the money invested in the near future.
The 27-year-old would like to keep it that way in the future. “Since I have more knowledge about investing, I have honestly become even simpler in my investments,” says the Freiburg resident. He now only invests his money in a single stock fund.
A simple savings plan can be essential, especially for beginners. Alexander Baetz tells us his best tips to help you set up a good savings plan.
1. Get an overview of your finances
How much is the monthly income? What expenses are on the other side? And how much money is actually left over at the end of the month? The 27-year-old says that the most important thing for a savings plan is to have a concrete overview of your own finances. “As an investor, you should know your income and expenses,” says the young man. In his experience, a budget book could help.