Does the money already exist?
New salary
Today: later earnings are not cash you own.
- This monthSalary arrives → expenses and commitments → affordable contribution
- Next monthNext salary must arrive → reassess what is left → contribute
- Following monthAnother receipt → another affordable contribution
Existing €12,000
Today: all cash owned and assigned to investment.
- Date 1 · today€4,000 → investment€8,000 still in cash
- Date 2 · one month later€4,000 → investment€4,000 still in cash
- Date 3 · two months later€4,000 → investment€0 still in cash
The existing-balance schedule is hypothetical. No interest, fees or other cash movements; investment values can change between purchases.
Set recurring contributions from the money left after expenses and commitments. With variable income, review what remains on a regular date; an automatic transfer should not create a shortage that requires selling or borrowing.
Assign the balance before scheduling purchases
A bonus or inheritance may also fund emergencies and nearby spending. Compare entry schedules only for the portion assigned to long-term investment. Phasing cannot make an unsuitable final allocation affordable to lose.
Waiting changes when risk begins
Dollar-cost averaging invests equal amounts at regular intervals regardless of prices, in any currency. Each payment buys more units at a lower price and fewer at a higher one.
For an existing balance, gradual entry leaves some cash waiting. It avoids some early losses but can miss early gains. Neither immediate nor phased investment guarantees a better purchase price or a positive return; after entry, the full amount faces the chosen portfolio’s risk.
The middle purchase changes the outcome
These invented paths establish no real-world likelihood. Fractional units are allowed; waiting cash earns no interest. No distributions, fees or taxes.
A · Prices fall, then recover
Price per unit · each full vertical scale = €120, from zero
Combined units after date 3 → 130 units · €13,000
B · Prices rise, then return
Price per unit · each full vertical scale = €120, from zero
Combined units after date 3 → 113.3333… units · €11,333.33
Date 1: €12,000 → 120 units → held throughout → €12,000 at date 3.
Check the purchases and research limits
Units equal payment divided by price. Path A: €4,000 ÷ €100 + €4,000 ÷ €80 + €4,000 ÷ €100 = 130 units. Path B replaces the middle 50 units with €4,000 ÷ €120 = 33.3333… units. Multiply each total by the final €100 price; rounding is only for display.
Vanguard’s 2023 research compares immediate and phased entry using historical and simulated returns. Its opportunity-cost findings depend on the samples and assumptions; they do not predict which schedule wins from your start date. Gradual entry may help a loss-averse investor follow a plan, while leaving the final investment risk intact.
Make the schedule executable
For income, record the contribution rule, review date and destination. For phased existing cash, also record the total, purchase dates and completion date. Moving dates with each market headline replaces the schedule with forecasts; changed income or spending needs give a concrete reason to review.
Check minimum orders, whole-unit dealing and transaction, platform and conversion charges. Small remainders can wait for another contribution. Identify waiting cash, its interest, access and protection; update the investment amount if some is spent.
Write a comparison memo
On 22 October 2026, a fictional household has €50,000: €10,000 accessible reserve, €10,000 for a fixed €13,000 payment in 24 months and €30,000 for a flexible long-term goal. Available saving is €250/month, contributed at each month end. Ignore return, expenses and tax for the payment fund.
Compare 40/60 and 70/30 shares/bonds within the long-term €30,000 under one shock: shares −25%, bonds −5%. No flows, FX, costs or tax in this shock. Either exposure can be obtained through one mixed fund or two funds with identical underlying investments and currency treatment; their actual fees and access are not given.
On paper, write a short memo: assign the money once; distinguish roles, wrappers and weights; calculate both losses and each initial share weight against all €50,000; allocate the monthly saving; name a missing document or fact. State what this comparison cannot establish.
Worked memo and checks
€50,000 = €10,000 accessible reserve + €10,000 payment fund + €30,000 flexible long-term goal.
The €13,000 payment in 24 months lacks €3,000. At €125 per end-of-month contribution it reaches €13,000, ignoring return, fees and tax. From the available €250/month, that leaves €125/month for the long-term goal, conditional on continued saving capacity.
40/60 within the €30,000 long-term part
Before: €12,000 shares + €18,000 bonds. Reserve/payment money: €20,000.
After the stated shock: €9,000 shares + €17,100 bonds = €26,100. Long-term loss €3,900.
70/30 within the same €30,000
Before: €21,000 shares + €9,000 bonds. Reserve/payment money: €20,000.
After the same shock: €15,750 shares + €8,550 bonds = €24,300. Long-term loss €5,700.
In the four allocation-comparison bars: shares, bonds, then the separate reserve/payment assignment. The shock applies only to long-term shares/bonds: −25%/−5%, with no flows, FX, costs or tax. It is a scenario, not a probability or loss limit.
Shares initially represent 24% or 42% of all €50,000, even though they are 40% or 70% of the goal portfolio. The greater share weight loses €1,800 more in this scenario; this does not establish which has the better future outcome.
A mixed fund or two funds can deliver either initial exposure when their underlying investments and currency treatment are identical. Before choosing the wrapper, obtain actual expense, dealing, access and maintenance terms. None are supplied here. The long-term goal's amount and date are also missing, so neither mix establishes adequate funding.
The memo fixes exposure and the work it requires. Next, check the fund documents, full cost and access before treating a chosen structure as an executable holding.