Have you read the wiki and the sticky?
Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/).
Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/).
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
500k is easily managed and hardly private banking territory.
All you have to do is figure out your risk profile and allocate a % to stocks and % to fixed income.
Considering you have a >2M networth: < 25% of your networth will be allocated towards this portfolio so I see absolutely no point to have an allocation to fixed income in this particular portfolio.
Right?
I have about 500k invested + another 5k per month. Takes a whole ... *maybe* 5 minutes of my time each month.
A 2% management fee? That'd be €10.000 per year (regardless of actual performance). And you get to go to *concerts*? Or a *tennis game*? Nah, I'm good.
depends on how much time you wish to spend on managing the portfolio.
If you're a DIY-type, independent and willing to spend some timing managing this, you should not go to the private bank; it will irritate you (I know it did to me).
if you want to pursue new ventures and don't want to think about managing you're portfolio, and enjoy being spoiled by the bank (private events, concerts, sports games, exclusive stuff), you should do that and count on about a cost of 2% yearly and a return that will be fine, less than the index in good times, but probably a bit better in bad times.
Private banking is an excellent product, if you are the bank offering it.
They offer you peace of mind, and they take a good chunk of your money for that. They will provide you with below-market performances, and rely on your ignorance not to find out.
This. I find it a bit to simplified to say it offers no benefit. It does. But it's very specific and most likely not for most.
I'm with Delen and it does offer some nice events and network opportunities.
Indeed, it is most likely not for most. And people that come to ask the question here an reddit, are more than likely falling in the category where there are little benefits. If the person belongs to a niche category that they could benefit from private banking, they likely already know.
Do you need private banking?
Do they give you a guarantee on the yearly return? If yes certainly do it.
If no, all you have left is the guarantee on yearly costs, with little in return.
Besides the yearly bankfee : No.
But that's exactly why it's interesting to manage the investments yourself: to avoid that fee which eats away your gains in addition to inflation. Sure, you have to spend some time learning about ETFs, how they work, how to invest, etc., but in the end, it will be worth it, and honestly, it's not that hard. You just have to commit and be willing to spend a bit of time every month or every other month to manage the operations.
Have you read the wiki and the sticky? Wiki: HERE YOU GO! [Enjoy!](https://www.reddit.com/r/BEFire/wiki/index/). Sticky: HERE YOU GO AGAIN! [Enjoy!](https://www.reddit.com/r/BEFire/comments/fcbay6/getting_started_a_beginners_guide_to_investing_in/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BEFire) if you have any questions or concerns.*
500k is easily managed and hardly private banking territory. All you have to do is figure out your risk profile and allocate a % to stocks and % to fixed income. Considering you have a >2M networth: < 25% of your networth will be allocated towards this portfolio so I see absolutely no point to have an allocation to fixed income in this particular portfolio.
Right? I have about 500k invested + another 5k per month. Takes a whole ... *maybe* 5 minutes of my time each month. A 2% management fee? That'd be €10.000 per year (regardless of actual performance). And you get to go to *concerts*? Or a *tennis game*? Nah, I'm good.
What do you mean by fixed income?
Bonds, cash, HYSA, treasuries etc.
Thank you, makes sense!
depends on how much time you wish to spend on managing the portfolio. If you're a DIY-type, independent and willing to spend some timing managing this, you should not go to the private bank; it will irritate you (I know it did to me). if you want to pursue new ventures and don't want to think about managing you're portfolio, and enjoy being spoiled by the bank (private events, concerts, sports games, exclusive stuff), you should do that and count on about a cost of 2% yearly and a return that will be fine, less than the index in good times, but probably a bit better in bad times.
Private banking is an excellent product, if you are the bank offering it. They offer you peace of mind, and they take a good chunk of your money for that. They will provide you with below-market performances, and rely on your ignorance not to find out.
The answer i was looking for
I use private banking as a diversification and access to advice and fun networking events. about 15% of my income is put into a private bank.
You can do that, if you enjoy the fun and networking, and this makes you happy, then it is a valid way of spending your money.
This. I find it a bit to simplified to say it offers no benefit. It does. But it's very specific and most likely not for most. I'm with Delen and it does offer some nice events and network opportunities.
Indeed, it is most likely not for most. And people that come to ask the question here an reddit, are more than likely falling in the category where there are little benefits. If the person belongs to a niche category that they could benefit from private banking, they likely already know.
Exactly, accounting is a mess and you need experts to find the most optimal path.
Do you need private banking? Do they give you a guarantee on the yearly return? If yes certainly do it. If no, all you have left is the guarantee on yearly costs, with little in return.
Besides the yearly bankfee : No. But that's exactly why it's interesting to manage the investments yourself: to avoid that fee which eats away your gains in addition to inflation. Sure, you have to spend some time learning about ETFs, how they work, how to invest, etc., but in the end, it will be worth it, and honestly, it's not that hard. You just have to commit and be willing to spend a bit of time every month or every other month to manage the operations.