Back to investing

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Back in June, I stopped buying Vanguard’s All World Funds (VWRL) and haven’t invested in anything since.

Now I’m back to it and have signed up for an automatic savings-investing plan with comdirect. I think it’s called Wertpapierplan, and my first transaction will be September 1st!

comdirect’s Depotkonto platform is complicated (for me) to use, but has some neat features. You can create a schedule to buy ETFs at certain set times during the month, and they waive transaction fees! There’s a list of 75 ETFs that you can buy through Wertpapierplan.

I’ve chosen these 4 ETFs to replace my beloved VWRLs:

  • COMSTAGE S&P 500 UCITS ETF – TER 0.12%
  • ISHARES CORE MSCI WORLD UCITS ETF – TER 0.20%
  • COMSTAGE DAX TR UCITS ETF – TER 0.08%
  • COMSTAGE STOXX EUROPE 600 NR UCITS ETF – TER 0.20%

Thanks to Richard from Banks Germany who set me on this path!

I’ve been thinking a lot about whether I should continue to invest 100% of my income, or if I should keep some money liquid in case we need it for Martin’s alternative cancer therapies.

But I’ve decided to proceed with our investing and FIRE plans. It makes me feel good, and anyway we keep way too much of our networth in cash. We have a lot of problems, but money is not one of them.

So, here’s towards the future!

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9 thoughts on “Back to investing

  1. I am a big fan of cost averaging. Yes, it is a trade off between letting your money work the longest time and averaging the cost out. Also, it does not matter in long term. But since I tend to sleep well at night knowing that I have averaged my costs the best I can, I don’t worry if my money did not work for a few days.

    So this is what I do with the timing of the sparplan. Buy twice a month.

    I have the exact portfolio. I have 4 Sparplans running, each buying two funds at a different date of the month (1st, 7th, 15th and 23rd). Something like this.

    1 – World, S&P500
    7 – DAX, Stoxx600
    15 – World, S&P500
    23 – DAX, Stoxx600

    This way, I buy each fund every 15 days.

    Yes, I know, too complicated for no reason. But then at least technically I do not worry about buying all when the market was in the highest point of the month. And then since there is no transaction costs for buying, why not.

    More importantly, this also makes it easier if I want to close one of the funds. Remember I wrote about using the €1600 tax free allowance each year by withdrawing before end of the year if you have made capital gains. So if you have more number smaller plans, it will be easier to close one or two of them to plan exactly the amount of capital gains, rather than having to break a bigger fund with a higher capital gains.

    Btw, you notice that none of these give you dividends. I thought you were into getting dividends, so just wanted to point that out.

    Finally, since you are going freelancing, in case you are not sure about the monthly deposit, you can always amend the sparplan when ever you like. So you can change it each month depending on how much you want to deposit.

    Liked by 1 person

    • Hi Richard, it’s your exact portfolio because I copied it from you! You had posted it in the comments. 🙂

      Does the comdirect Wertpapierplan automatically withdraw from the attached Giro? Because I have no idea how to transfer money to our Depot. (I don’t like the comdirect platform, but they have much better ETF TERs than ING-DiBa’s Sparplan).

      I do love getting dividends, but have now been converted to growth investing instead. You’re right that we don’t need the income right now, and we can hopefully sell off some shares during the year to max our capital gains room. Which is kinda like dividends!

      Definitely plan to adjust the amounts when I go freelance. I won’t have income for at least 2 months, or more depending on when I can get up and running with the freelancing. During my no-income times, my husband will have to invest some of his stash.

      THANKS FOR YOUR HELP AGAIN!!!!!!!!!!!!!

      Like

      • Yes, it automatically withdraws from your Girokonto. Once you set up your sparplan, it asks you to confirm with a TAN number the mandate to withdraw it. Then on the due date it withdraws accordingly and allots the number of units or part of units based on the amount.

        I can understand, the comdirect depot is not so user friendly and figuring out how to get a sparplan opened takes some time. You can to check which one you want, note the WKN/ISIN and then go back to the other screen where you can set up a sparplan and select the number. But once you get the hang of it, it is easier. In fact it is not even easy to find that there are some ETF’s that can be bought without transaction costs and can be easily missed.

        Liked by 1 person

  2. You also said you like having smaller bundles so it’s easier to close. Do you have to close whole buckets like that, or can you sell off individual units?

    I’m already getting the hang of it, even though I haven’t purchased anything yet. Every time I log in to comdirect to check it out, I have to re-learn how to navigate it all again. lol!

    Like

    • I stand corrected. You can sell individual units. I was confused with the DKB Depot.

      On a side note, the transaction charges will apply when you sell them (only purchase is free). It is the lowest of €4,90 or 1.5%, per transaction. So in case you are selling them try to avoid selling in small quantities multiple times.

      Liked by 1 person

  3. Pingback: Renting is great! | Ms. Canadian Expat

  4. 1.5% is actually very high cost for transaction. It is the interest rate some of the highest paying deposits give these days. But the saving grace is that it is maxed at €4,90. I checked CapTrader, and 0.2% was the highest.

    Liked by 1 person

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