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How do I set my strategy?

Step 4

As we mentioned earlier: investing is something you do for the long term. So it’s a good idea to make some rules for yourself, which you can stick to as an investor. It gives you both a compass to go by and peace of mind, and may even help to prevent from you doing things you’ll regret afterwards. Step 4 goes into what you need to think about when figuring out your strategy. Investing involves risk. You could lose (all or part of) your initial investment.

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Step 3. Can I invest risk-free?

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Back to the overview

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Step 5. How much can I afford and do I want to invest?

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What is my goal?

Setting yourself a clear goal will keep you motivated to invest and stick to your strategy. Do you have a clear goal for later, such as a big trip, or are you looking to build up some capital? It’s important to set yourself a goal, even if you don’t know what you’re investing for. A clear goal will provide direction and help you maintain a long-term focus.

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What is my budget?

Make a deal with yourself about how much you want to invest. For example, a fixed amount every month, quarter, or year (as long as you make sure that you only invest money you can spare and still maintain a healthy buffer). This way you spread the risk and will be less tempted to buy impulsively. Are you still not sure about your budget? In step 5, we’ll take a look at your income, expenses and savings.

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Ask yourself the following questions when setting a financial goal

  • Can I spare the money invested for a long period of time?
  • How much capital do I want to build up?
  • How many years am I giving myself to reach that amount?
  • How much can I invest (monthly or quarterly, for example)?
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How much risk am I willing to take?

Think about the level of risk you are prepared to take. The risk involved in your investments is largely determined by the types of investment products you choose. Going for a mix of shares and bonds is a way to align your risk with your personal wish to diversify. Investment funds and ETFs offer an easy way to spread your investments.

What will it cost?

Investing involves different types of fees and charges. As we mentioned earlier, this can affect the potential returns from your investments. You pay for services like the management of your investment portfolio and, in some cases, for buying and selling investment products. Every bank or broker has a different name for these fees. 

 

  • Service fees: these are the charges for all our administrative services in relation to your investment portfolio and the information you receive about it.
  • Transaction fees: these are fees that are charged when you buy or sell an investment product. The transaction fee depends on the investment product and order type.
  • Ongoing fees: these fees cover management and administrative expenses incurred by the investment funds you invest in. You pay them to the investment funds directly. Ongoing fees are mostly incorporated into an investment fund’s unit price.
  • Fund transaction fees: these cover the expenses incurred by a fund manager in buying and selling investments for their investment fund. These are not paid separately either, as they are included in the investment fund’s unit price.
  • Exchange fees: If you want to buy or sell shares on a stock market outside the Netherlands, you may be charged exchange fees. Since you’re buying or selling these shares in a currency other than the euro, the transaction amount will be converted into euros. This conversion is subject to a fee.

 

All the costs of investing at a glance:

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Invest actively or less actively?

Are you keen to follow the stock market news and spend time on your investments, or would you prefer not to put a lot of time into investing? With ETFs and investment funds from all over the world, you are indirectly investing in dozens of shares and/or bonds without having to spend a lot of time on managing it all. To get the same kind of spread yourself with shares, for example, you would have to spend a lot of time on research and subsequently on tracking all those investments. Choose what suits you best.

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Keep it simple or less simple?

Our Guided Investing service lets you invest the easy way. At the start, we’ll guide you in deciding on your goal, how long you want to invest for, and the level of risk you’re willing to take. You start by investing in one of our 5 ESG Profile Funds. If you opt for Self-Directed Investing, you choose your own selection of ETFs, investment funds, shares and bonds. If you want to start actively investing in shares, it’s important to spread the risk over different geographical regions and industries.

On to the next step

So now you’re a step closer to your start as an investor. In step 5, we’ll look at your income, expenses and savings buffer. Remember: you should only invest money that you can spare, alongside your savings buffer.

Investing involves risks

Investing involves risks. You could lose (some of) the money you invested. If you are going to invest, it is important that you are aware of this. Invest with money you can spare. Read more about the risks associated with investments.