Buying Index Funds At A Certain Price…Well…Doh

Since I still hadn’t bought VWRL with the money I was supposed to invest in March (a baby came along which “messed up” the plan) I decided to throw the money at the fund asap. Well, not too soon. The hubby also needs to invest his budget for this month. Oh, and it’s almost May…which means it’ll be my turn again! Oh dear…

Anyway, at this moment VWRL is a bit pricey at €49.somethingish. I’d like to buy at €48.somethingish. I know, I know…market timing…a big no no. The hubby and I can’t seem to kick the habit. However, turns out the stocks have hit €48 and below in the past three months. When I purchased my first order I just paid whatever the price was at that moment. I also saw other options when I ordered these stocks, but I didn’t pay attention to them. I started to think about these options and figured out I might be able to place an order for a certain price without having to pay attention to what the stock market is doing. I went back to my BinckBank interface today and made a phone call.

I explained my plan and I was dead right about the possibilities. Turns out I can place in an order for a certain price. I can choose between an order which will be valid for one day or for one month. I chose the latter one. So, I placed an order for a certain amount of VWRL stocks at €48,50. If that amount of VWRL stocks become available at that price or less in the upcoming month I will have bought them at that price. Yay!

I love my new strategy. It means I can automate these bigger purchases. At the beginning of each month we’ll wire a big pile of money to our stock accounts with BinckBank (to me in uneven months and to the husband in even months). When the money is added to this account we’ll place an order as described above. This way we won’t have to keep an eye on what the stocks are worth on any given day.

What do you think of this new strategy?

Love,

Mrs EconoWiser

Advertisements

5 thoughts on “Buying Index Funds At A Certain Price…Well…Doh

  1. Ano

    Maar op de rekening zelf krijg je geen rente en als de prijs niet daalt tot 48,50 koop je niets aan. Wat ga je dan doen?

    Reply
  2. Bas

    Ik vind het een slechte strategie, je gaat juist voorbij aan het principe van indexbeleggen, namelijk dat je niet op hoeft te letten wanneer je instapt, zeker als je voor lange termijn belegt. Als je zoals jij doet elke maand inlegt in plaats van 1 groot bedrag in 1 keer dan spreid je het risico bovendien ook al.

    Verder kan je order helemaal niet worden utgevoerd zoals Ano hierboven meldt, dan mis je de rit naar boven. Als er iets gebeurt op het wereldtoneel en de beurs zakt als een baksteen dan wil je geen doorlopende orders hebben. Dus mijn advies, gewoon kopen tegen de geldende koers en er verder niet naar om kijken 🙂

    Reply
  3. opnieuwbeginnen

    vroeger, toen ik nog belegde in aandelenfondsen, was het een bekend fenomeen, dat de koers hoger was, net na payday.
    Misschien kun je beter maandelijks inleggen tussen de 5e en de 10e van de maand.
    inleggen voor een bepaalde prijs is natuurlijk ook prima.

    Reply
  4. Frenchie

    I think it is because we are new doing this things and we don’t have enough experience. Cents seem to matter now, but in 10 years, the value may have double, so we may think “what was i worrying about, life is too short” :). But I must say, i got pay today, and i wanted to invest some, and I ask myself the same question. I ll probably buy at whatever price but if I wait… (just joking)

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s