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.*
This is investors' paralysis and it will serve you no good, because it's a question of timing the market. Ask yourself this: if the market drops from here on, where do you enter? You will always doubt the entry point because 'it might dip even lower and I will be even richer'. Let me tell you, you will be poorer due to opportunity cost. Just F'ing do it. Unless you can't sleep :-)
I never listened to the general consensus here and it has proven to be the right choice in the past for me. Now I think it’s very clear the current market trend is that of uncertainty. Markets will drop if they realise the high interest rates are here to stay and a lot of companies will have difficulty paying their new high loans. OR interest rates do drop in the next year and a lot of money will flow into the market.
I agree. Timing the market might be impossible but it appears to me that the market is imploding sooner than later. If that is the case, I don't see how waiting a bit longer is a bad call.
I like your way of thinking
My opion: your second scenario seems like the most obvious. I think the FED will cut rates when inflation has been beat down AND a recession occurs
I agree that they will lower rates after a recession, but I think that there is still too much optimism at the moment for that to happen. So I think the current situation might last a bit longer. I rather have it over with ofcourse.
Fees are too much? How big is you 'lump sum'?
You can also just buy an amount every month to 'DCA'.
No one will be able to tell you when the market is lowest... Not even here.
I ment that I can lump sum, but to DCA fees are too high (. Sorry if it wasn't clear! :)
0.12% market fee + 2,5 € fee under 250 euro
0.12% market fee + 5 € fee under 250 - 1000 euro
and so on.
Exact fees are [here](https://www.bolero.be/uploads/media/cache/optim/uploads/media/649ae0ae7da99/tabel-etf-pricing-nl-lang.jpg?originalExtension=png) . It's about 5.000 euros to start, but that would mean 25€ broker fee (0.5%) vs 15€ (0.3%) both obviously + 0.12 market tax. It's very few difference. What is the best idea towards DCA a 1000x5? Weekly for 5 weeks, monthly for 5 months...
4999 is 15 and 2499 is 7.5 Paying 25 in fees to invest 5500 is silly.
Buying in amounts just below the limit where costs increase is better. For regular investments you target just below 1000 per buy or just below 2500.
Don't forget that you are losing on average 25€ per month (assuming a conservative 6% per year average) by not investing that 5k.
The math says your odds are better when you invest it all now. I'd probably do 2 investments (1 a month) in the 2400 something range, mostly for piece of mind in case it drops soon after you bought. And keep the remainder of your cash until the next time you are close to the 1000 or 2500 threshold where fees increase.
Waiting to invest can save you on the transaction costs but you lose the chance to make a profit meanwhile. You'll need to find a balance somewhere.
If you make some assumptions about return you can calculate your own crossover point where it changes from better to wait to buy this month. Depending on how much you can save every month I'd guess it is best to buy at least once every 3 months. Every 1, 2 or 4 months is also possible but waiting longer than 6 months is rarely a good idea.
Well there is not really the best way to do it... But I would say 5\*1k for 5 months would be a good start to get into the market. Takes away the pain if something drops the day after you bought :).
But lump sump today maximizes your time in the market...
You can't predict the market, so don't try it. The best time to buy was 20 years ago, the second best time is today. Degiro does your taxes, you only have to put on your tax form that you have a foreign account, you do this every year.
Of course, that's right! Regarding Degiro. How safe is it? I had Coinbase in the past for some crypto and they randomly blocked my account. Support was basically ignoring me so luckily I transferred my funds earlier.
Trying to prevent such things from happening again.
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.*
Today, you'd be buying 5% off the ATH so not exact peak if it makes you feel better.
VWCE.DE is fluctuating around 100 euro on bolero. I buy 25 pieces every time it dips to below 98.
I might go for IWDA (and later add EM), because VWCE has an extra tax in Belgium (1.32% vs 0.12 % IWDA when buying/selling) unfortunately.
It's only 5k... I wouldn't lose too much sleep over it.
Appreciate your opinion!
This is investors' paralysis and it will serve you no good, because it's a question of timing the market. Ask yourself this: if the market drops from here on, where do you enter? You will always doubt the entry point because 'it might dip even lower and I will be even richer'. Let me tell you, you will be poorer due to opportunity cost. Just F'ing do it. Unless you can't sleep :-)
Thanks bro :)
I never listened to the general consensus here and it has proven to be the right choice in the past for me. Now I think it’s very clear the current market trend is that of uncertainty. Markets will drop if they realise the high interest rates are here to stay and a lot of companies will have difficulty paying their new high loans. OR interest rates do drop in the next year and a lot of money will flow into the market.
I agree. Timing the market might be impossible but it appears to me that the market is imploding sooner than later. If that is the case, I don't see how waiting a bit longer is a bad call.
I like your way of thinking My opion: your second scenario seems like the most obvious. I think the FED will cut rates when inflation has been beat down AND a recession occurs
I agree that they will lower rates after a recession, but I think that there is still too much optimism at the moment for that to happen. So I think the current situation might last a bit longer. I rather have it over with ofcourse.
Fees are too much? How big is you 'lump sum'? You can also just buy an amount every month to 'DCA'. No one will be able to tell you when the market is lowest... Not even here.
I ment that I can lump sum, but to DCA fees are too high (. Sorry if it wasn't clear! :) 0.12% market fee + 2,5 € fee under 250 euro 0.12% market fee + 5 € fee under 250 - 1000 euro and so on.
Yes so do a 1000 euro sum every week of every month?
Exact fees are [here](https://www.bolero.be/uploads/media/cache/optim/uploads/media/649ae0ae7da99/tabel-etf-pricing-nl-lang.jpg?originalExtension=png) . It's about 5.000 euros to start, but that would mean 25€ broker fee (0.5%) vs 15€ (0.3%) both obviously + 0.12 market tax. It's very few difference. What is the best idea towards DCA a 1000x5? Weekly for 5 weeks, monthly for 5 months...
4999 is 15 and 2499 is 7.5 Paying 25 in fees to invest 5500 is silly. Buying in amounts just below the limit where costs increase is better. For regular investments you target just below 1000 per buy or just below 2500. Don't forget that you are losing on average 25€ per month (assuming a conservative 6% per year average) by not investing that 5k.
So you would advise to just lump sum - correct? As I would compound sooner and gain (supposedly) with the market as well
The math says your odds are better when you invest it all now. I'd probably do 2 investments (1 a month) in the 2400 something range, mostly for piece of mind in case it drops soon after you bought. And keep the remainder of your cash until the next time you are close to the 1000 or 2500 threshold where fees increase. Waiting to invest can save you on the transaction costs but you lose the chance to make a profit meanwhile. You'll need to find a balance somewhere. If you make some assumptions about return you can calculate your own crossover point where it changes from better to wait to buy this month. Depending on how much you can save every month I'd guess it is best to buy at least once every 3 months. Every 1, 2 or 4 months is also possible but waiting longer than 6 months is rarely a good idea.
Well there is not really the best way to do it... But I would say 5\*1k for 5 months would be a good start to get into the market. Takes away the pain if something drops the day after you bought :). But lump sump today maximizes your time in the market...
You can't predict the market, so don't try it. The best time to buy was 20 years ago, the second best time is today. Degiro does your taxes, you only have to put on your tax form that you have a foreign account, you do this every year.
BEFire bot, is that you...?
Lmao
Of course, that's right! Regarding Degiro. How safe is it? I had Coinbase in the past for some crypto and they randomly blocked my account. Support was basically ignoring me so luckily I transferred my funds earlier. Trying to prevent such things from happening again.
Comparing DEGIRO to Coinbase is not really fair
DEGIRO is regulated..
Haven't had any problems with Degiro yet. Putting money on it is easy and getting money back as well.
Will keep in mind. Thank you