A beginner’s first investing mistake: She transferred twice what she planned, but learned the lesson quickly

Airė Armantė Krukauskaitė planned to invest €100 in two products: SEB Bank’s investment robot and a Vanguard S&P 500 exchange-traded fund covering 500 of the largest U.S. companies. Instead, while completing the application in the banking app, she sent the entire €200 to the investment robot.

“That was my first fail. I simply pressed something incorrectly and transferred all €200 to SEB Bank’s robot. I could no longer get the money back immediately. Obviously, that is not the best way to handle money,” Krukauskaitė said with a laugh.

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That was my first fail. I simply pressed something incorrectly and transferred all €200 to SEB Bank’s robot. I could no longer get the money back immediately. Obviously, that is not the best way to handle money.

SEB personal finance expert Sigita Strockytė-Varnė explained that the mistake resulted from selecting two payment settings at once. The robot offered a one-time initial contribution and a recurring payment for monthly passive investing. Krukauskaitė selected both for the same date, so the system deducted €100 twice.

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When completing the questionnaire, the robot offers two options: a one-time contribution, with which the investment starts, and a recurring contribution for monthly passive investing. She selected both settings for the same date, so the system deducted €100 twice.

Once money has been invested, it cannot simply be taken back. The investments must be sold. Strockytė-Varnė warned that rushed selling during the early stage of building capital is not helpful, and advised balancing the rest of the portfolio over time instead.

She also said the robot sets a risk level based on the investor’s questionnaire responses. If someone lacks a sufficient financial reserve, it automatically selects a safer, medium level. Beginners should have savings, such as a fixed-term or savings deposit, so unexpected expenses do not force them to sell investments at an unfavorable price.

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If a person indicates that they do not have a sufficient financial reserve, the robot will automatically choose the safer, medium risk level.

The discussion also covered the “Accumulating” label on the Vanguard ETF. In an accumulating fund, dividends from companies such as Apple or Nvidia are automatically reinvested. In a distributing fund, dividends go directly to the investor’s account. For someone focused on building capital, Strockytė-Varnė said the accumulating option allows all dividends to continue working toward growth.

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At the initial investing stage, when the goal is to build and grow capital, the accumulating option is the best choice. Then all dividends keep working and encourage faster growth.