Back
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?
3 views
Share
0 likes
Ottilie
Asked on 15 April 2024
Comments (1)
Sign in to add a comment
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
Reply
1 like