To grow my capital well I need to be able to invest more then 10K. I started with 0.5K and kept adding as confidence was growing in general world ETF. I want to up it now, but somehow I don't see putting my whole value (400K) on this. Is this fear recognizable? Can we share some opinions? Thanks in advance. It took me one year to get the confidence to put the 10K in the ETF.
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Calculate how much you are loosing each year to inflation. At 2% you are already loosing about 8K in value each year. This should give you wings.
10k is peanuts if you have 400k tbh.
I think 80%-90% of my net worth is invested and I feel uneasy if I have too much money on my accounts. Over the long run there's a 100% chance that you lose money to inflation if you don't invest.
Fear and anxiety always exists in the vague, not in the specifics. What is it that makes you fearful? Say you up your investment to 100k, what is your fear? That the market drops with 30% or even 50%? Well it's a 100% certainty that the market will drop with 30-50% over the coming years, why fear it? It's not within your control.
And even if it drops by 30%, so what? Then you have 370k for a short while, instead of 400k. Does that change anything in your life somehow? A year or so later, maybe 3-4 years later, the market will be up again. Nothing lost. The only thing you lose now is your peace of mind.
My suggestion would be to add 5% to your ETF position every month. At that pace, you’ll be fully invested in less than two years. At the same time, keep 10% in cash on the sidelines so you can take advantage of a market correction, this can meaningfully improve your long-term returns. If the market drops by 10%, add an additional 5%. It lets you benefit from dollar-cost averaging, while still taking advantage of temporary downturns.
One important piece of advice: don’t obsess over your gains or losses in dollar terms. Focus on percentages instead. Otherwise, you’ll drive yourself crazy. A 5% decline is a 5% decline. On a €10,000 portfolio, that’s €500. On a €100,000 portfolio, it’s €5,000.
You’ll need to build the emotional resilience to handle these swings. If market volatility causes too much stress, investing may not be the right fit for you.
I went all in IWDA in september 2024 and have been investing in it since then. I’ve made substantial gains. Imo the “AI bubble” is not real.
I’d feel much more uncomfortable if my invested capital was below 10k…
If you want to be absolutely sure that you’ll lose purchasing power due to inflation, don’t invest. Losing money with certainty is risk-free…
DCA with 800-1000 euro Every month and when a big correction is happening invest double DCA! In a window of 5 years
What? That would take him about 400 months to invest everything he has now, that's more than 30 years. Even if he doubles, it would still take more than 15 years. That's a ridiculously long time frame.
Yolo it in. Fed is printing money, we’re heading for another 20% year in 2026. Worst case it’s recession time and you sit it out for a few years. Who cares if you don’t need the money tomorrow.
Your confidence will increase over time and decrease again during market corrections. It took me 8 years to become more or less indifferent to the invested amount and how it moves.
Currently in the low 7 figures so you understand what even a normal 5 or 10% index correction means for me now. That goes both ways though. Only 8 years ago I got annoyed by losing a few 100 euros in a day, I’m not even kidding. That’s the minimum amount in my portfolio that moves at any second now.
I guess ‘growing a stomach for it’ is part of the game.
You have millions?
Not multiple, but I do invest a low 7 figure number in the stock market. I only hold 20K EUR cash in my ‘emergency fund’.
How old?
How much did you save and how much did you gain?
Great question; no one asked me that before and somehow I stopped keeping track of how much of my saved money (earned through work) I funneled to investing, simply because I invest everything that I have. I have saved and invested around 350K EUR coming from 'earned income'. My net gains are in the direction of 2,5x that amount.
350k input over 14 years is 25k a year. Fuck. I’m saving all I can and I’m not even that close to it. And I have 0 fun money.
It's 16 years and I already saved up around 30K EUR from weekend work and summer jobs when I started working (I started weekend work when I was 15, up to 20 hours per week). Probably around 7 euro per hour at the beginning and I recall 10 euro per hour towards to end. The weekend work accounts for 20K of that 30K EUR, I always kept a spreadsheet.
I would say I'm a compulsive saver with a low cost of living by choice. I don't buy a nice villa even though I can; I'm happy with my apartment and I want to invest. My only expenditure outside 'cost of living' is some travel.
Anyway; investing needs to be a hobby, otherwise I think it can become fairly stressful. Or just buy ETF's every month for a fixed amount and don't look at it for the next 30 years.
Why not, he’s 100% FIRE.
If I have 400k I’d be 🔥
Numbers don't lie. If you're having 400k that is not in a broad market ETF, you are losing to inflation. There is not a single 10 year period in history where an ETF did not beat inflation. So it is simple a 2 step program. 1) Buy. 2) Wait. The hard part is psychologically convincing yourself that it can be this easy and it is the right way!
Can I ask you a question?
Do I need to let the belastingen know every year if I put my money each month aside to an ETF instead of on my bank account and do I get taxed yearly for that or only taxed when I one day withdraw my money?
For now I'm not investing into this. Only langetermijn sparen.
Would love to check my options as I'd love to put aside a part of my income into investment fund.
This is a fair question. There are (currently) several different kinds of taxation and requirements.
Upon purchasing an ETF, you generally need to pay a TOB. If you are using a belgian broker/bank, they take care of this on their end for you, so you do not need to bother. If you are using a broker/bank that does not do that, you need to declare the TOB on the MyMinFin website within 2 months of the transaction, and pay your tax through bank transfer, separate from your income taxes.
You do not get taxed yearly on simply holding your assets. At least certainly not if you have less then 1 000 000 on a single account.
Be aware, ETFs often have an Acc and a Dis (accumulating and distributing) version, they differ in the dividends. An Acc ETF will take the dividends it gets from the underlying stock, and invest it in itself again internally, and you as a retail investor are not bothered with that. (You do get the dividend yield, but not as a payout, rather as a value increase on the fund). The Dis variant distributes the dividends to the end investor, at that point, you have to pay a 30% dividend tax on the distributions in belgium. So, it is better to hold the Acc variants from a fiscal point of view.
Upon selling your ETF, you need to pay the TOB again on the transaction cost, and then, it might be that you need to pay a capital gains tax too. At this point, the government might be considering to be in the process of contemplating of planning to vote on the law that will charge you 10% on your gains. This is not currently implemented, so I can not comment too much on it.
Langetermijnsparen is mainly beneficial for the bank, not for you. You do not beat inflation, you are losing money.
If you are looking into ETFs, something like MSCI All world accumulating ETFs with a low total expense ratio (TER) are what you want. (IWDA, VWCE or similar)
Everything is taxed. Tob, dividends and the meerwaarde belasting
Meerwaarde belasting is like the waasland wolf. It is mythical, some people heard about it, there are sightings, but no certainty on its existence.
They’ve started taking our money, when opting in a flat 10% and if you don’t forget a year later some of it back
But, there is no capital gains tax at this point. But next year, there will have been one since the start of this year.
All in limbo.
https://www.tijd.be/netto/dossiers/spaar-en-beleggingsgids/alles-wat-u-moet-weten-over-de-meerwaardebelasting/10639894.html
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You have etfs that accumulate dividends. This simplifies your tax returns.
You’ll likely get there with time and experience but, unless your position size makes you want to puke you will not make any meaningful gains.
It’s cool to see it grow bit by bit but it will never become life-changing unless you put size behind ! HIGHLY convicted positions! This is the most important
Mtfu.
Going above 100k is exciting, from there on I didn’t feel much actually. Now reaching 220k. Think I pop a small bottle when I go through 250k
Much faster gains after the first 100k
https://youtube.com/shorts/sp_p8LVrtg8
No single smart individual would drop their entire value on a single day on one ETF. You need:
Your risk appetite should also depend on your age.
If he invests 1k per month, that’s 33 years. 5k per month is still 7 years. OP needs to DCA that entire amount over 1-2 years maybe.
OP needs to do what they comfortable with. OP is afraid about having 10k in investments and here you are saying OP needs to DCA everything within 1-2 years. For me that is not reasonable advise.
I think you need to see some graphs on how in the long term (20 years) investing in the biggest companies is really safe, whereas cash actually loses worth and goes to 0.
You maybe think investing is risky, but in the long term, keeping cash 100% certain loses all your wealth.
Maybe some books or talks can help you realising.
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Look at MSFT for 20 years. UNH for 10 years, NKE for 10 years. Hell, SP500 went on decades of no returns. Buffets darling OXY is in the loss
Time <> beating the market! Never!
DCA is perfect. Every week a substantial amount
It doesn’t seem like investing in volatile products is for you. It requires a cool head in case of a crash, and you seem far too afraid.
Maybe some more safe products with a guaranteed return such as bonds or a hysa account are more appropriate? The return is low, but so will be your stress level.
Keep doing it in small steps if you’re not comfortable. A peaceful mind is probably one of the most important factors when investing in the stock market.