What are you struggling to optimize?

[Baptiste Wicht]

Hi,

I would like to have some opinions on what people are trying to optimize the most. What I mean by that is whether you are focusing on expenses, income, taxes investments, or something else.

For instance, we are personally struggling to optimize our taxes. Our expenses are fine, our income as well but optimizing our taxes would go a long in improving our finances.

What about you?

 

[Max]

I am trying to increase my investment income and still avoid being considered a professional trader

 

[Baptiste Wicht]

I am trying to increase my investment income and still avoid being considered a professional trader

Most people generally should not worry too much about that. Do you have special consequences that would make you more subject to this?

 

[Max]

Most people generally should not worry too much about that.

I want to believe

Do you have special consequences that would make you more subject to this?

I use lombard credit (15% of investments) and leveraged ETFs (24% of investments); the 2024 profit is currently larger than my annual employment income. I used to limit losses of LETFs through half-selling (more often than once in six months), but now try to give it up. I also do rebalancing from LETFs to ETFs, but this is probably less risky for the taxation status.

 

[Baptiste Wicht]

Indeed, that could be a case for being classified as a professional investor.

 

[Max]

On the other hand, interest payments from P2P-loans cover the cost of the lombard credit several times. I will now try to do as much buy-and-hold with LETFs as possible. And occasional rebalancing is no big sin from my point of view. The critical point will probably be a too high capital gain.

In the worst case, I will register a limited company.