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How to decide what to set as the investing threshold?
First Time Investor
Hello, I'm new to investing and I've just set up an account with Pearler, I've set up a recurring deposit of $1000 each month. The part that I'm not sure about is what to set as my threshold for investing. I've used the Shares Investing Frequency Calculator (https://pearler.com/explore/tools/investing-frequency-calculator) and it says I should do $1,615.38 every 7 weeks - but I'm paid monthly so that doesn't fit with that. Are there any other ways to work it out? Maybe I should round it up to $2000 every 8 weeks, or round down to $1000 every 4 weeks?
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Ottilie
Asked on 15 April 2024
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Hey Ottilie, good question.
The calculator is trying to find the ‘optimal’ number, but in reality it’s usually more practical to just go with what fits your personal situation.
I think either of those options is fine. You will save on brokerage going with 8 weeks, but you might simply find it more motivating to invest every month.
Mathematically it’s going to make very little difference over time, so I would just go with whichever option will make your investing more enjoyable.
I personally like monthly and get annoyed by having to wait a long time to invest, haha. But everyone’s different, some people even choose every quarterly!
All the best,
Dave
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