The husband wants to drop €3.000 into index investments in one go. Since our emergency fund contains more than enough dough, we can’t make extra mortgage payments and we don’t have any other debts to repay. The money is just sitting there in his bank account and he “doesn’t know what to do with it”.
I just had a quick look at our investment broker’s website and it turns out that the first time you’re making an extra investment you have to invest a minimum of €10.000! After that, there are no minimums. Argh… He could open a brokerage account with another broker, at the same TERs. However, they don’t have the interesting dividend tax-break advantage. Turns out we can make extra payments of any amount since we’re already investing on a monthly basis. Thanks, Jane! I was thinking he could adjust his monthly investment to €3.000 and then change it after the transaction is made. However, that way he can only purchase stocks at the end of each month and he’s probably too late for this month’s transaction.
Also: we’re in a bull market now. The index funds we like are at an all time high. I know I know I know that timing the market is not the smartest thing and it’s all about time in the market…but we can’t help thinking that it’s gonna drop. We obviously don’t know when. Maybe we’ll have tens of thousands saved by then to drop into index funds in one go?!
MSCI world-wide index funds (taken from Meesman’s website, our favourite Dutch broker!)
Jeez…the things you need to think about when investing.
What would you do?