Setting up an ETF savings plan

Setting up an ETF savings plan – the guide:

Step 1: Open a securities account (10 minutes)

• With a neo-broker (Trade Republic, Scalable Capital) or a direct bank (ING, DKB, comdirect)
• Fill in the online application, verify your identity via VideoIdent
• Free of charge – no custody fees

Step 2: Choose an ETF (5 minutes)

• For 90% of all investors ONE ETF is enough: MSCI World (e.g. iShares Core MSCI World, ISIN: IE00B4L5Y983, TER: 0.20%)
• Or FTSE All-World (Vanguard, IE00BK5BQT80) – also includes emerging markets
• Choose accumulating (dividends are reinvested automatically)

Step 3: Create the savings plan (3 minutes)

• Click "Create savings plan" in your account
• Enter the ETF's ISIN
• Set the amount (from €25/month)
• Choose the execution day (1st or 15th of the month)
• Specify the clearing account

Step 4: Set up an exemption order (2 minutes)

• Assign the €1,000 saver's allowance to the securities account
• This keeps the first €1,000 of gains per year tax-free

Step 5: DO NOTHING (0 minutes per month)

• The savings plan runs automatically
• Don't check the price every day
• Don't panic-sell when prices drop
• Let it run for 10, 20, 30 years – compound interest does the rest

That's it. 20 minutes of effort for probably the best financial decision of your life.