A regular investment plan has some big advantages. Here are Moneycube’s tips for setting up a solid plan.
Look for growth
You’ll be saving this cash for some time. So if you are putting away a significant amount each month, look for something that has a chance to grow – i.e., not just a bank account. (See below for what’s a significant amount).
Look for flexibility
If you’re setting up a plan that’ll be in place for a few years, there’s a good chance your needs will change along the way. So look for an arrangement which lets you adjust your investment up and down, or stop contributing for a while.
You’ll also want the flexibility to move between funds without incurring crazy charges, if your risk appetite changes, for example. And look closely at any restrictions on accessing your money at any time: many investment plans come with ‘early redemption charges’ attached, which claw back a chunk of your savings if you choose to withdraw in the early years.
Shopping around will help you avoid these charges altogether.
Consider where to put your regular investment
Depending on how much you plan to commit, you’ll have different options.
Moneycube enables regular investments from €250 per month. At this level and upwards, investment funds are ideal. They offer diversity, flexibility, and growth opportunities. (For smaller amounts, you can find a savings account here).
In Moneycube’s view, direct investment into shares is a difficult option if you’re seeking to build up your wealth in regular instalments. You’ll need to be prepared to manage your investment pretty closely, or pay a wealth manager to do it for you.
Focus on fees and charges
It’s likely best to avoid a major upfront cost if you are starting. So charges to weigh carefully include advisor fees and transaction costs, for example for purchasing shares. For regular investing, Moneycube favours a low ongoing fee, coupled with no dealing costs and no one-off advice fees.
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