I'm considering putting most of my savings (about 55,000 €) in an ETF with focus on dividend payments as I want some of the returns accessible to me without having to sell. I'm planning to go with Vanguard High Dividend Yield ETF there.
My intention is to build up wealth, preferably to that point where the dividend payments are of a significant amount. To my current understanding with the amount I have I'd get something around 100 € on average per month.
I don't plan making bigger spendings in the next ten year range, except when I inevitable will need a new car.
I currently have about 800 € per month that I don't spend which I then would also intent to put in that ETF instead of into my savings account.
I'll keep at least 7,000 € in my savings account as my emergency fund.
I've been thinking if I want to buy something bigger I can temporarily stop putting the 800 a month in the fund and start saving it up again.
Given my situation would it be reasonable to just put the remaining 48,000 € into an ETF? Or is it too risky/making me too illiquid? Should I diversify more?
EDIT Information about Austrian taxes on capital gains:
- Both dividends and gains in value are taxed at 27,5 %
- Dividend payments are taxed fully when they happen
- Gains in value are taxed partially every year, the remaining gain is taxed when the asset is sold. The amount which is taxed yearly depends on a few things like whether it's foreign, registered for gain notification (?), ... which I don't fully understand the rules of
- In some cases dividends that are reinvested may be taxed less but I'm not sure on the rules here either