Expected returns by Robeco

Robeco, the well known Dutch asset manager, published their expected returns for 2020-2024. Given that returns on nearly all assets are pushed lower as the main benchmark, 10 year German govt bond yields, keep drifting lower, it’s no surprise to see some very conservative expected returns. Developed market equities 3.25% EUR return, emerging markets 3.75% […]

Passive investing part 9: is bond allocation and outdated option?

This is part 9 of my posts on passive investing for Europe based investors. I will discuss the current bond yields and why, in my opinion, the current levels support more than ever the case that many long term investors should avoid this option altogether. Is allocation to bonds an outdated option? As explained in part […]

Passive investing part 8: get paid for that risk

This is part 8 of my posts on passive investing for Europe based investors. I hope that the previous posts gave you some high level understanding of options for a passive investment portfolio. In this post I’ll explain my view on how to allocate your portfolio and why I think much of the advice you get […]

Passive investing part 7: bonds vs stocks

This is part 7 of my posts on passive investing for Europe based investors. After discussing historical returns for stocks and bonds it seems to be pretty obvious. You should allocate everything into bonds, they’re safe and stocks are risky! Or should you? Financial definition of risk – do you care? Mean returns of various assets […]

Passive investing part 6: historical returns – bonds and real estate

This is part 6 of my posts on passive investing for Europe based investors. This post will wrap up overview of historical returns. After discussing equities in part 5, I will wrap up the overview of historical returns with overview of returns for bonds and real estate. Bonds Bonds are assets with pre-defined payoff (coupon paid, […]

Passive investing part 5: historical returns – equities

This is part 5 of my posts on passive investing for Europe based investors. Even though I will follow the order as indicated in part 1, please feel free to ask or share any related thoughts in the comments below. In this post we will look at the risk and returns of the asset classes I […]

Passive investing part 4: asset classes

This is the fourth post in my series of articles focused on passive investing for Europe based investors. Even though I will follow the topics as indicated in the part 1, please feel free to ask or share any related thoughts in the comments below. This post will prepare us for discussion of historical returns by […]

Passive investing part 2: diversification

In this second post of my series of articles focused on passive investing for Europe based investors, I would like to explain why passive investing makes sense as a strategy for an individual investor not only from costs perspective but also from returns perspective. In particular I will write about the impact of diversification. Diversification […]

Spaarbelasting changes part 2

As more and more people start to notice that the headline of 440,000 euros being tax free comes with a cost to everyone who invests his savings, or at least does not keep them on his bank account, there are some interesting articles for example this one on Business Insider. The article goes through a […]

The Dutch wealth tax overhaul

Last week the Dutch government published an idea to overhaul the Dutch wealth tax system. Currently, the system assumes a return on any wealth above 30.846 euros which is then taxed at 30%. This results in approximately 1.2% tax (see details below copied from the press release) at 4.2% which is the rate assumed on […]