Due to wanting to make some changes to my portfolio and some overall future plans, I decided to open a growth account at LHV bank to slowly start buying into SP500.
Yes, I am aware that this is definitely not the best moment to do this since USD to EUR value is currently at a historical low and no one knows how far the Euro might drop in the long run.
Why a growth account not buying the index straight up?
Since fees for international stock are as they are, then the growth account just comes up on top in terms of fees if you don’t have a whole lot of money to buy. For straight up purchases to come out on top, you should purchase in the range of 1500euros+ at once, and that’s clearly not going to happen for me any time soon.
So, the current plan is to set aside 200€ (the reasonable amount for managing purchasing fees) every other month, hoping to build the account to 5K within the next three and something years. The plan is for this to be a very long term side investment, that might one day become the down payment of a new home.
The main reason why I chose SP500 is because I want it to be as passive as possible while in the end being a relatively low risk investment. The amount I’m setting aside won’t influence my portfolio in a very meaningful manner, it’s just do sit there building up a small nest egg for whatever (even if that whatever is an eventual bear market again).