Inspired by another thread I wonder:
How do you plan your investments of continuous savings contributions? How do you determine how much and when to invest (Automation? manually on specific days? Market timing?)? Maybe state what you invest in.
I’ll answer
My approach has evolved over the years into this. I’m a passive investor.
How much?
I do an estimation of expected savings at the end of each year, then determine how much to invest each month by dividing overall expected savings by 12. I then implement this in automatic investments.
At the end of the year, I look at my asset allocation and rebalance if necessary.
When?
Automated investments on fixed dates 1x per month. I never play around with them so no market timing.
Get the salary, pay the bills, leave the predefined amount of cash in the checking account, invest the rest. If the amount is too small to bother, just keep it there.
I transfer CHF 2400 to a savings account so I can pay taxes, 3a and yearly health insurance bills the moment I get them, and the rest gets invested.
I’m quite new to this, so I haven’t found a rhythm yet. When the zero transaction fee deal from neon runs out I’ll probably transfer my ETFs to Swissquote invest quarterly to save on transaction costs.
No automatic investment like @Moustachienne but logging into my account typically few days after the automatic transfer and pick the one ETF that’s lowest vs. my regional allocation based on a simple spreadsheet.
for 3a, I pre-calculate the monthly contributions such that for all my 5 accounts, a perfectly simple recurring payment (Dauerauftrag) covers this all year round. “fire & forget”
for non-3a: at the same day every month, I transfer everything from my checkings account that is above the cash cushion plus an average monthly expense. buy shares as soon as i get the deposit notifications from the broker (in case no miniscule amounts)
pros:
lets me invest the perfect amount each month
keeps my checkings perfectly balanced
cons
more manual effort that a simple recurring payment (Dauerauftrag)
does not reflect small other liquid cash such as neon, revolut, physical cash (however actually it would be simple to include this on a fairly automated way
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