Investing steps for the beginners

How to get started?

1. Create a separate bank account for spending money (do not keep your money in the account that is connected with bank card)

If you pay taxes in Estonia:
Open II and III pillar pension funds and contribute 15% of your gross income to III pillar

2. Decide how much money you will invest

a. Invest fixed percentage of your income (I invest 50%, Maria invests 15%+15%)
b. For SW people, live off your summer income, invest DD

3. First, pay off all your debts (only exception might be study loan)
4. If you have over 15 000 eek to invest, consider buying stocks directly
5. If you have over 10 000 eek, but want no risk, start with Investment deposit
6. If you have fewer than 10 000 eek, start with deposit or LHV kasvukonto or buy single stock

Start small – so you pay less “schooling fees” – Ranol started with 246 eek.

Some example portfolios:

Dividend stocks to start with:

For who?
1. Wants to learn to invest and how to manage their own money
2. Does not want to loose money but can handle temporary -30-50% drops in price
3. Will not need that money in minimum 2 years or might accept losses
4. Is ok to take Baltics risk in favor of lower taxes and fees

Steps:
1. Open investment account in LHV
2. Transfer money to your account
3. Buy stocks from the market
a. 1/3 Eesti Telekom (5000 eek) 7.50 eur
b. 1/3 Norma (5000 eek) 5.15 eur
c. 1/3 TEO (5000 eek) 2.24 LTL

4. You pay total fees of 195 eek (65 eek per transaction) or 1.3% of your capital
5. In beginning of June you will receive dividend of 1206 eek
a. 404 eek from Eesti Telekom (9.5 eek div per share)
b. 310 eek from Norma (5 eek per share)
c. 491 eek from TEO (1 eek per share)
6. You can buy more shares using that dividend money

Investment deposit:

For who?
1. Does not have time or interest to learn about investing
2. Does not need that money for 2-3 years for sure
3. Wants to have a guarantee or control the downside (10% max loss)
4. Has at least 10 000 eek to invest but under 100 000 eek

One good example – Põllumees põline rikas in Sampo bank

Minimum investment 10 000 eek
Period 2 years
Invests in soy, sugar, corn, wheat (25% each)
Upside: 70-80% of the rise of underlying portfolio
Downside: none (loss of interest 11.3% in case yearly interest is 5.5%)

LHV Kasvukonto

For who?
1. Can start with small amounts (minimum 1000 eek)
2. Can invest in USD
3. Suitable for regular investing
4. Should not trade or sell before 3 years
5. You need to pay income tax

Choose for instance "Globaalne kasvuportfell".

Ja lihtsalt algajate hirmutamiseks üks netist leitud eestikeelne blogi (ära näpi optisoone, eriti veel krediitkaardilt saadud rahaga!!!)