I’m having a difficult time quantifying the “often” part of investing often. I’ve used an investment frequency calculator to take into account brokerage costs and my current savings rate and it says I should invest $1500 parcels every 3 months (I.e. would invest 4 times a year), would you say this is not enough? Should I be aiming to invest more frequently despite the increase in brokerage costs?
Hi Naveesha! When it comes to a frequency in investing it really is what you feel comfortable with doing. Personally, I move money into my investment accounts once a month. I know others who do every quarter or just make a big move once a year. The important aspect is to invest consistently! If you are able to save up a larger amount and then just move it into your Roth of IRA on whatever annual date you choose, more power to you! Here is a post Jeremy did regarding this topic.
Hope this helps!!
Hey @Nav2711!
@dgurgan nailed it that more often isn’t better, as long as you’re consistent.
Since it sounds like you’re outside of the US and have to deal with transactional brokerage fees, it makes perfect sense to use a calculator to figure out optimal timing to stay “often” while not so often that the transactional fees negatively impact you. Four times/year sounds perfect to me, and given the fees, I think more often would hurt in your case, not help!
Jeremy
Thanks both for your help!