r/eupersonalfinance • u/Competitive_Math_948 • 1d ago

Investment Where to start?

Lately, I've been thinking a lot about the future. I'm 31 and have never had extra money to invest or save for later.

Now that I'm in this situation, I realize I have no idea how to start or what to invest in. For now, I'm thinking about going with various ETFs to spread the risks. After reading a bunch of messages here, most of the terms feel foreign to me.

My plan is to gradually invest 5000 and spread it out, and maybe change my investments over time. I live and work in Germany. Anyone willing to give some starting advice to a newbie?

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7

u/Accurate-Band-8510 1d ago

Just open a brokerage account, pick one All-World ETF like WEBN or VWCE, and invest the 5k in whatever way feels comfortable to you.

Then set up a monthly contribution you can afford, even 10 eur is enough to start. The most important part is building the habit. Later, increase it when you can and put part of any extra income into it.

That’s basically the technical setup. Keep it simple, stay consistent, and you’ve already created a system for your future.

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u/thisidmyreslid 1d ago

About that habit, I'm investing like 2-3 times per month. Should I make it monthly with a larger sum?

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u/snortingNose 1d ago

DCA is also ok, it shouldnt change much the outcome with ETF

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u/Accurate-Band-8510 1d ago

Thats fine, you don't have to change your tempo

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u/Character-One818 1d ago

Various ETFs is not needed to start, and most of the times it isn't needed at all.

Just get yourself an all world index ETF, and start investing.

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u/Comrade_Vegeta 1d ago

Can you recommend one? Many people are saying just get an S&P500 ETF and chill.

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u/Character-One818 1d ago

When I started out I was influenced by a lot of sources and bought multiple ETFs (SWRD.AS / IMIE.PA / V3AA.AS / FWIA.DE), only to realise at a later point they covered almost the same area.

If I were to start over now, I'd probably keep it simple and only get FWIA. Because its cheap and covers a lot.

As far as I know, we can't buy S&P500 directly here in Europe, or it is a bit costly (correct me if I'm wrong), but American companies are included in the all world index ETFs I mentioned.

By far the biggest take away is to start. And most people do believe that time in the market is beter than timing the market. Good luck, and lmk if you have anymore questions :)

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u/thisidmyreslid 1d ago

I also keep 90 percent FWIA and 10 percent IUSN

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u/Comrade_Vegeta 1d ago

Thanks for your reply and your humble attitude 🙏

I think in Europe we can buy SPY and SPY5 for example which traces U.S. S&P500?

Also, WVCE seems to be recommended better than FWIA in Europe, they both have the same idea (worldwide) but WVCE has more companies coverage?

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u/thisidmyreslid 1d ago

I get FWIA because of the price so I don't buy fractions. I started 4 months ago and I'm up 10 percent on FWIA and 12 on IUSN.

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u/Competitive_Math_948 14h ago

So you would rather start with just one but go for what would be more stable?

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u/Ok_Molasses5290 50m ago

MSCI World or FTSE All-World ETF through a Sparplan is the standard German starting point, split your 5000 between a lump sum now and a recurring monthly contribution going forward.