6 thoughts on “I opened a growth account at LHV bank

  1. Good thinking. An index fund is probably a good way to start. Also as you say both the US dollar and the SP are heftily valued right now so it’s probably a good thing to invest gradually.

    Sorry to hear about the steep fees for buying US stocks. It really is more fun to own stocks directly.I have a few and when the fees are paid they start paying back with dividends. US stocks often four times a year.

    Might mention that Uncle Sam keeps 15% of the dividend as tax but that’s no big problem.

    That said in my case I would’ve been better off by just bying an index fund last year and saving myself the trouble of picking individual stocks. Most of them went fairly well, in not a small part helped by the rising US dollar, but the some calamities in the Canadian shale oil industry dragged the portfolio down 😮

    Oh well, can’t win every year and thanks to diversification there are still some dollars left :) This year will be better :)

    I suggest your move is a good one.

  2. Have you considered Value Average strategy instead of Dollar Cost Average (just buying the same amount every month). It’s as same passive as DCA if you get the system running but in a long run getting much higher returns.

    1. Well, technically the fees set the minimum to 200€ (since that fee is 1%, a minimum of 2€), so it’s unreasonable to buy less as a part of VA strategy. Buying more however, that portion of the VA strategy might actually be useful, I will have to look into it.

  3. Positive news about LHV having such thing! Thanks for info! Hope they will move more to robo-investing side.

  4. According to my calculations:
    a) Yes, you have to buy at least 200€ worth of stock in one transaction
    b) Your portfolio must be at least 2200€ then the yearly fee is 0.6% (0.05%) a month + VAT but thanks to option that first year is without monthly charge then it is easier to achieve 2200€+

    200€ per month the yearly cost is about 1,06% + ETF management fee (usually 0,09+%). If my made my calculations correctly. So It is one of the cheapest way to invest into index funds in Estonia if you have long term strategy. Using LHV standard online account It would be cheaper near around 900€ investment per month.

    I think I will consider this growth account option myself also.

    Question about the dividends, are they also taxed by 15% or 30%? Did you fill W-8BEN form?

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