CZ Tax: Capital gains are tax-exempt after 3 years of holding. Accumulating ETFs (VWCE) have no annual dividend tax event — gains compound untouched. The 3-year clock resets per share batch (each monthly buy = new batch). Verify before selling — legislation evolves.
OSVČ note: No employer cushion means keep 3–6 months of bare expenses in a liquid account before scaling up investments. Once that buffer exists, the amounts above can increase. Adjust monthly contributions when income allows.
ETFs Used
VWCE
Vanguard FTSE All-World UCITS ETF (Acc)
~4,000 companies • 50+ countries • ~60% US incl. full S&P 500 • Ticker: VWCE.DE • All pools
0.22%
annual fee
WSML
SPDR MSCI World Small Cap UCITS ETF (Acc)
~3,500 small cap companies globally • small cap premium tilt • Ticker: WSML • Retirement only (10%)
0.45%
annual fee
IIND
iShares MSCI India UCITS ETF (Acc)
~100 large/mid cap Indian companies • structural growth bet • Ticker: IIND • General only (20%)
0.65%
annual fee
How to Set Up in XTB
1
Your account — lump sum
Markets → search VWCE.DE → Buy → Market Order → enter EUR amount. XTB converts CZK automatically. Tag it mentally as retirement pool.
2
Create two Investment Plans on your account
Investment Plans → New Plan → name it "RETIREMENT" → VWCE → 10,000 CZK → Monthly, 5th. Repeat for "GENERAL" at 5,000 CZK. XTB executes automatically.
3
Create Investment Plans for kids
Same account → Investment Plans → New Plan → "KID1" → VWCE → 5,000 CZK → Monthly. Repeat for "KID2". All 4 plans run automatically from one account.
4
Hand over when they're ready — not necessarily at 18
You control the timing. When they understand what compound interest is and won't cash it out for a car, transfer the equivalent amount or ETF units to their own account. No rush.
5
Leave it alone
Do not sell during drops. Review allocations once a year. Increase contributions when income grows. The market will have multiple 30–50% corrections over 20 years — all temporary.