7Mon·

Hello everyone, I have been carrying on an accumulation on $IWDA (+0.36%) since about October 2023, but initially I was only putting in 400€ per month.

I started in a serious way with a real strategy only in June 2024, putting 1200€ per month.

About 17k more to go to get to my asset allocation, when I started investing I chose the PAC strategy because I was at the 'beginning and I was afraid of possible collapses.... (even though I had different available liquidity), obviously now it turned out to be the worst strategy given the performance of the markets in this last year, it was better a PIC with the liquidity I had.

Now, should I continue with my CAP strategy and get to allocation by the end of the year, or should I invest, even if currently maxing out, in larger amounts?

Even with the current situation and a possible market correction?

I could also continue with monthly PACs and have surplus liquidity ready to enter more "heavily" if there is a correction in the coming months

In any case, my strategy is to hold this ETF for the long term, 20-30 years minimum, I am now 24 years old.

Thank you all!

21 Comments

Manuele@yby

7Mon

A very long-term investment such as the one you are making is affected to a certain extent by market timing: if you believe that the value of the stock will continue to rise on average, in 20 to 30 years whether you bought at €100 or €95 does not make a real difference. For a type of investment like this it pays much more to stay in the market so the longer you invest the better.

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Giacomo@Logan200_

7Mon

@yby grazie!

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Ivan@IvanLab

7Mon

@Logan200_ I'll tell you what I would do, pour in a 30-40% right away, recalibrate the pac with the remaining amount, and finally consider a larger entry on a major drop. It's a hybrid solution that would perhaps give you more peace of mind.

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Giacomo@Logan200_

7Mon

@IvanLab A nice compromise, "recalibrate the PAC with the 'remaining amount," according to you divided in how many months? 6 o 12?

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Ivan@IvanLab

7Mon

@Logan200_ Following the argument that in the long run, and that is your investment horizon, a pic on the pac is worthwhile maybe the smaller one is to be preferred. However it is so much a psychological situation and I understand you, choose the one that makes you feel more comfortable, also consider that the difference is 6 months, nothing on your time horizon.

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Giacomo@Logan200_

7Mon

Okok, anyway as a strategy is very good, I think I will proceed in this way.
Now I go ahead with my monthly PAC until I get different liquidity for work, then I proceed with a PIC of 40/50% and a PAC in 6 months on the remaining amount.
I keep, in addition to my emergency fund, another 'portion of surplus liquidity on TradeRepublic (which gives me interest anyway) ready to be invested in case of a big correction

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Lollo@Solid_Lollo

7Mon

Bravo that at 24 you are already thinking about your future! All the advice you have been given is helpful and valid.

I'll tell you what I would do in your situation: invest all the cash you have and then continue with the €1200/month PAC. In 10 to 15 years maybe you will change strategy/goals but you will have already set aside a nice nest egg and then you will have more experience to figure out what best to do with your portfolio.

My 2 cents :)

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Giacomo@Logan200_

7Mon

@Solid_Lollo thanks for the advice! I am waiting for liquidity from work and will move more on PIC....
Only thing of course I will not be able to continue with PAC of 1200€, those were calculated to enter the market gradually given my liquidity.
Once I enter the market I don't have a monthly income/output ratio to invest 1200 per month.
I have to stop and invest as excess liquidity comes in

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Ivan@IvanLab

7Mon

I agree with what Manuel said about that horizon little changes.

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Giacomo@Revan9

7Mon

I think your initial asset allocation was not wrong but just congruent with your risk appetite! The initial entry with PAC may fit if entering with a PIC would not have made you sleep at night. Now it matters little how far the markets are, for the long term the important thing is to stay within the market as Manuel said.

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Giacomo@Logan200_

7Mon

@Revan9 ok perfect, yes actually it fits as a reasoning! Obviously I stay inside the market, but to get to my assett all 'allocation, and then enter at least another 17k, if I end up with different liquidity in January 2025, better to continue with PAC and enter in like 12 months, or 2/3 PIC in a few months?
This is my current doubt

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Giacomo@Revan9

7Mon

The PIC over the long term yields more because you don't miss any bullish days, but if for a psychological issue you prefer to enter the market gradually you can enter the market over 6-12 months by putting the remaining liquidity in the meantime in, for example, short maturity securities. However, every decision should be made on the basis of your predisposition to risk, in case a less risky approach is understandable and more appropriate, there is nothing wrong with that! In the meantime also understand market dynamics better and reprogram your strategy better: the important thing is to be consistent and not have FOMO 💪🏻

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Bertux@bertux

7Mon

it is no problem to do a long term etf PAC plan. statistically the market has always risen and by taking off little by little you will have a nice capital in your hand in a few years. continue with the PAC and don't be demoralized by the temporary market performance. I advise my clients not to look from time to time at the investment

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Giacomo@Logan200_

7Mon

Thanks for the answer, But the question is this, I currently have about 13k invested and I need to invest another 17k. If I end up with a lot of cash in January, should I invest a good amount right away or continue with a PAC of smaller amounts and get to allocation like in 12 months ?

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Bertux@bertux

7Mon

@Logan200_ if you have that liquidity already at your disposal i would advise you to invest them directly. is there a specific reason why you chose $IWDA or is it just related to a geographic differentiation? because if it is the only instrument in your portfolio i would advise you, in order to reduce issuer risk to buy etfs of different issuers and on different markets. I'll give you an example: by investing all your assets exclusively on $IWDA, on the one hand you differentiate geographic risk by taking stocks from all over the globe, but on the other hand you expose yourself to the risk that if ishares (the SGR that manages etf) were to run into economic difficulties, you would risk having nothing left in your hands.
My advice is to buy etf on major world markets from different issuers. For example you could buy different etf for different continents from ishares, Amund, xtrakers, HSBC. this way you also have control over any macroeconomic events by being able to move your cash from one etf to another in case of economic changes

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Giacomo@Logan200_

7Mon

@bertux
Msci Word I chose it for worldwide diversification, but I currently invest in.
SWDA Msci Word 73%
MEUD Stoxx600 5%
IUSN Small cap Word 8%
XMME emerging 7%
EMXC emerging ex-China 7%
The percentages would be the division of assets
Besides that then also government bonds and some Fineco stuff

But do you mean to diversify different issuers even for the same ETF that tracks the same index?

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Bertux@bertux

7Mon

@Logan200_ diversifying different issuers makes sense because if one of them gets into trouble or takes a particular fund out of trading, you don't suffer the consequences on a large part of your assets. in the end you are entrusting a large part of your money to one person. In etfs if the underlyings are the same there should not be much difference between one manager and another.

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Simon@xsimon90x

7Mon

Try watching Paolo Coletti's pac vs pic video on YT.
In the long run, PIC always wins. I watched it last year, had doubts like you...now I am very happy 😅

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Giacomo@Logan200_

7Mon

@xsimon90x sisi I 've seen it too, however at the posological level it always does a little...

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Simon@xsimon90x

7Mon

When things are proven by numbers, and verified on different samples over time, I would say there are few variables left.
We are still talking about a world... it is not easy to do timing...

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Giacomo@Logan200_

7Mon

@xsimon90x I don't want to do timing, I simply started with PAC instead of doing PIC even though I had the possibility, now since I am invested, for the remaining cash I will do a PIC or hybrid situation..

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