Investing

Hi Jordan.

Nah you’re not really missing out on anything by having to wait to get money invested. Some people actually choose to invest every 6-8 weeks (or 12) to minimise brokerage. So don’t worry about it, just focus on your saving and investment plan :)

Cheers, Dave

Hi Jordan,

Great question, I’ve outlined some things to consider below, but ultimately the answer is going to depend on you and how you feel about balancing frequency with fees.

Maximising the time in the market – this is a big part of your question, and if you invested each week then you’re really everaging at say 4 more weeks in the market compared to your current 8 weeks. This 4 weeks becomes less important as you hold for years. Say in 5 years, ask yourself if those 4 weeks at the start really make much of a difference?

Minimising fees – investing more frequently will mean more fees, and in your scenario you’re talking 7x more fees for the same amount invested. This is a lot, no matter how much or how often you’re investing.

Balancing time in the market with fees – to find your answer, ask yourself whether an average extra 4 weeks (over a long-term holding period like 5-10 years) is worth 7x higher fees…

Full disclosure, I am a co-founder at Pearler and we make some of our revenue on fees, but we would never want someone to pay more than they need to!

Hopefully this helps you find your answer. Let us know what you decide!

Nick