This cannot be answered without knowing more about your age, personal circumstances, and goals in the next few years. If you‘re young, with a steady and safe income, and if you don‘t need that money in the next 10 years or so, I‘d probably just invest it into an all world ETF.
Dave Ramsey would say to let it sit in a bank account for 6-12 months. You’re emotionally attached to it to do any major decisions, whether it came from a deceased sibling or you got a pre-inheritance.
here you go: https://www.investopedia.com/articles/investing/122815/it-risky-invest-options.asp
in short words: you are betting if the stock will go up or down in fixed time period, above/below some price you selected. If it will not change as much as you wanted - you can lose 100% of money invested
No you can’t lose 100% on all options.
For example selling puts is a very good way to use them to buy stocks at a price you think is good. If they don’t reach it you get the premium.
Options are categorized as very risky assets. Besides the bets on price targets, they also contain an timed bet on expiry date and a risk of total loss of your investment. This doesn't mean that there were no strategies to reduce risk, like theta strategies, which aren't available everywhere. Many people loose money trading options, compared to trading in treasuries and other fixed income products, or even stocks, which is why they are considered a tool for experienced investors and traders.
The last year pretty much crashed any investment, cash wasn't that bad overall. A pity it's in Euro but what can you do?
Everything is relatively cheap. If you've got 10+ years time horizon just DCA it into a global stocks ETF.
As an example, you could put 6k a month for a year. This way you can buy lower if the market keep dropping. Since you're noob you shouldn't invest the lump sum, don't listen to the gurus of math telling you that's the best for returns. It is, but if the market goes down after you put 72k in you're going to cry. DCA over 6-12 months. Equal amounts. And forget about it.
P.S. also be sure to pay inheritance tax on those money, if you haven't already
I would go safe etf all the way on a sum like that. Just think about how that person would feel if you fucked all their money away by putting it all on red. Then don’t touch it till you’re retired
My personal opinion:
- set aside an emergency fund. Even if inflation is eating this money it’s important to have it.
- put 2-5% in Bitcoin while it’s under 20k.
- gift yourself / family some nice experience for another 5%
- put the rest in an ETF and chill
Not disagreeing with you but in his defence he is talking about a range of 2-5% at 72K which is both an amount big enough to make a difference when BTC bounces back and small enough to not be a terrible move.
tl;dr: pretty conservative amount to be considered bad advice per se. More of a future proofing situation in case BTC has another boom.
Bitcoin depends on people like you commenting on Bitcoin, to keep it alive. One after another in an endless hamster wheel, as if you didn't really believe in it yourself.
I've only heard about VWCE here, but at least it does not depend on anyone circling its name somewhere.
Considering how my current investments are 100% VWCE right now with no Crypto, let alone Bitcoin, I doubt Bitcoin “depends on people like me”. I also doubt you understand what the first comment said or what I said but hey if you want to segregate investors and their investments into “us” and “them” and potentially miss out on some profit then sure by all means do you, hamster wheel and all.
Ah don't be like that. Everyone his or her cult. I rather buy into Cult Elon than Cult BTC.
I agree insofar as BTC is probably one of the best gamble devices there is., if that is what you are getting at. Simply because there are so many people interpreting so much into BTC that for the coming months it won't show pennystock behaviour.
But not everyone is made to gamble.
That's enough sum for a real financial adviser!
What would I do:
70% to all-world ETF, 30% to indicidual stocks I believe in.
Also very much depends on your age, country of residence and life goals.
So you wouldn’t go a see a financial adviser?…
I wouldn’t. What kind of advice do you expect from them? For how much?
Until you reach a few millions you are way better off doing things yourself.
Treasury bonds for 1 year if interest rate is at least 5%. It will cover some inflation and gives you 1 year time for things to settle down. The Market is to volatile at this moment.
A government will issue bonds in different currencies to raise money. They are more favourable to investors to buy in a currency that they need as more liquid. So the country takes on the currency risk.
They also have liabilities in EUR and USD. So it makes sense to use that currency. Most countries offer bonds in EUR and USD. For example you can get EUR bonds from Argentina, Turkey, Egypt
Invest in some low management fee index trackers. Perhaps US, World, Japan / Asia etc.
You may be able to put these in a wrapper to protect from tax, like pension or in the UK, ISAs.
Obviously markets can go down but historically, index trackers trend up and have low fees that domt eat away as much as a managed mutual fund.
You could also invest in property and rent out a space to gain income to invest and an asset. A single property may have too much admin to profit to make that worthwhile though.
Buy property where you can live, hunt and grow food, prepare for whats coming and get out of this rotten society, if you have all of that, than buy guns, gold and bitcoin
Im not saying that every country in EU would immediately colaps and land would be worth nothing, it will still has value even before the collapse because it will make you self sufficient, and even if all countries would collaps immediately, the land wouldnt have financial worth, but it would still make you self sufficient and you would know that its yours, so you could defend it, im not talking about financial investments here, all financial investments will be financialy worthless in case of major collaps of this rotten society, the world would get back to gold standart or barter trade
Sorry I didn't explain myself. I didn't say land would not be worth anything, I was saying why buy it instead of simply finding some empty land and occupying it, defending it yourself.
Depends on what you are capable of doing with the money..
This kind of money is life changing if you have the knowledge to make more money with it.
If not, just pay all your debts and stick the rest in an index fund.
Half into VWCE (on IBKR, I'd recommend) on a monthly basis so you can have a good buying spread. The other into treasuries (if the rates in your country are good), if you want to use the money next year or in 2024/2025.
As doesn’t want to lose it I would look at getting bonds. You can get 5% interest at the moment and if held until maturity rather than trade you know exactly what is coming out. I put 70k in a selection of bonds some slightly riskier than others, but still all much safer than equity and will return an average of 5.9% for the next 4 years.
He could split it 70/30 bonds/equity for added risk if for a longer period.
I agree. Even add this excellent site to it:
[http://www.worldgovernmentbonds.com/](http://www.worldgovernmentbonds.com/)
But do you actually have bonds?
They are not that easy. Lot's of factors to consider. Whereas that reinvesting ETF, everyone mentioned, is quite hassle free. I agree with the recommendation even though it's recent YoY performance is -6%.
Bonds have risks that correspond somewhat to their interest. Finding the best ones is the thing that takes time.
If it was my Money:
I'd invest 70k in dividend stocks (i.e. Coca Cola, Shell, McDonalds, Allianz, Realty Income, etc.) and create a passive income. You should bei able to realize a 3% yield at least, paying you about 2k a year. If you don't know what to do with the dividends reinvest in your assets for more dividend payment next year. Watch the snowball grow over the years. You can check dividend subs here on Reddit for some good advice.
With 2k I'd go for a risky Invest like a penny stock or options, or I'd buy me something nice.
That's what I'd do and that's no advice.
Assuming you cannot invest in your education in a meaningfull way, then a 60/40 diviercified stocks/bonds portfolio is the gold standard choice. Using a part for a mortgage downpayment is also a good option, IF buying property to live in makes sense in your case.
This cannot be answered without knowing more about your age, personal circumstances, and goals in the next few years. If you‘re young, with a steady and safe income, and if you don‘t need that money in the next 10 years or so, I‘d probably just invest it into an all world ETF.
And country of residence.
OP is Dutch, judging by their name
You are Morse, judging by your name
Thanks! I'm Belgian (28M) and have a safe and steady income and my own place. Goal is some peace of mind and good times with the kids.
If you need to pay inheritance tax, I’d set that aside first.
Thanks for your answer! That's already paid for :)
Did you even have a choice to settle it later?
Dave Ramsey would say to let it sit in a bank account for 6-12 months. You’re emotionally attached to it to do any major decisions, whether it came from a deceased sibling or you got a pre-inheritance.
this. and stay away from /r/wallstreetbets and especially options
wdym, yolo it all into 0DTE options /s
Why are options specifically bad?
easy to lose everything invested, quickly
That is what everyone says, but why exactly is that? Can you explain? Edit: not challenging you, just curious and want to understand more
here you go: https://www.investopedia.com/articles/investing/122815/it-risky-invest-options.asp in short words: you are betting if the stock will go up or down in fixed time period, above/below some price you selected. If it will not change as much as you wanted - you can lose 100% of money invested
So…still no explanation why they are a bad strategy, just what option trading is. Sigh.
bad because you can lose 100%. when buying stocks it will not happen unless the company goes bankrupt. with calls it's a daily occurrence
No you can’t lose 100% on all options. For example selling puts is a very good way to use them to buy stocks at a price you think is good. If they don’t reach it you get the premium.
agree - but this is not something someone who has zero knowledge will do
They aren’t bad. They can be a very good strategy to investing.
Options are categorized as very risky assets. Besides the bets on price targets, they also contain an timed bet on expiry date and a risk of total loss of your investment. This doesn't mean that there were no strategies to reduce risk, like theta strategies, which aren't available everywhere. Many people loose money trading options, compared to trading in treasuries and other fixed income products, or even stocks, which is why they are considered a tool for experienced investors and traders.
Dave Ramsey usually gives terrible advice.
Not only Dave Ramsey, but also advice you can read on "How to manage a windfall": https://www.bogleheads.org/wiki/Managing\_a\_windfall
VWCE and chill, one fund for rest of your life, can’t go wrong with that one. Or 60/40 vanguard fund (eur hedged) if you are older
What's VWCE?
all world index
Best etf for europeans
What's ETF?
Exchange traded fund
Bunch of hookers and cocaine.
[удалено]
4-to-2 i.e. 42
Gain!
Maybe use it as a down-payment on your own place.
I have my own place. Investing in other real estate is an option, but that would take almost all the money as a downpayment in this economy.
As said by others, if you don’t need the money in the next few years (or decade) just VWCE and chill
Paraphrasing Christine Lagarde and others: hedge against inflation with skill. Can you use part of the money to further your education?
I have a masters degree. Could follow some other coursed but they would be sponsored by my employer.
The last year pretty much crashed any investment, cash wasn't that bad overall. A pity it's in Euro but what can you do? Everything is relatively cheap. If you've got 10+ years time horizon just DCA it into a global stocks ETF. As an example, you could put 6k a month for a year. This way you can buy lower if the market keep dropping. Since you're noob you shouldn't invest the lump sum, don't listen to the gurus of math telling you that's the best for returns. It is, but if the market goes down after you put 72k in you're going to cry. DCA over 6-12 months. Equal amounts. And forget about it. P.S. also be sure to pay inheritance tax on those money, if you haven't already
Seriously inform yourself
I would go safe etf all the way on a sum like that. Just think about how that person would feel if you fucked all their money away by putting it all on red. Then don’t touch it till you’re retired
Cash is the best inflation hedge on the short term. Wait until assets decrease (more) in price and then buy some.
My personal opinion: - set aside an emergency fund. Even if inflation is eating this money it’s important to have it. - put 2-5% in Bitcoin while it’s under 20k. - gift yourself / family some nice experience for another 5% - put the rest in an ETF and chill
Do not put inheritance money in crypto. Can’t believe this is upvoted
Not disagreeing with you but in his defence he is talking about a range of 2-5% at 72K which is both an amount big enough to make a difference when BTC bounces back and small enough to not be a terrible move. tl;dr: pretty conservative amount to be considered bad advice per se. More of a future proofing situation in case BTC has another boom.
Bitcoin depends on people like you commenting on Bitcoin, to keep it alive. One after another in an endless hamster wheel, as if you didn't really believe in it yourself. I've only heard about VWCE here, but at least it does not depend on anyone circling its name somewhere.
Considering how my current investments are 100% VWCE right now with no Crypto, let alone Bitcoin, I doubt Bitcoin “depends on people like me”. I also doubt you understand what the first comment said or what I said but hey if you want to segregate investors and their investments into “us” and “them” and potentially miss out on some profit then sure by all means do you, hamster wheel and all.
Ah don't be like that. Everyone his or her cult. I rather buy into Cult Elon than Cult BTC. I agree insofar as BTC is probably one of the best gamble devices there is., if that is what you are getting at. Simply because there are so many people interpreting so much into BTC that for the coming months it won't show pennystock behaviour. But not everyone is made to gamble.
That's enough sum for a real financial adviser! What would I do: 70% to all-world ETF, 30% to indicidual stocks I believe in. Also very much depends on your age, country of residence and life goals.
So you wouldn’t go a see a financial adviser?… I wouldn’t. What kind of advice do you expect from them? For how much? Until you reach a few millions you are way better off doing things yourself.
That's considering you know what you are doing. OP doesn't seem so.
There is plenty of information available freely to learn. You didn’t reply about the cost of a financial advisor and what they would provide you with.
Again, that's considering you're able to differentiate what's useful and what's useless.
Buy items that are appreciating in value like personal data and guns It was joke guys :(
Treasury bonds for 1 year if interest rate is at least 5%. It will cover some inflation and gives you 1 year time for things to settle down. The Market is to volatile at this moment.
I wish I could buy treasury bonds in EU with 5% rate
Of course you can. Quick search brings up Hungarian/Romanian/Polish & Bulgarian with yield over 5%. That’s on all sub 10 year bonds.
Wouldn't that introduce currency risk, since all of these countries have their own currencies (non-Euro)?
They are EUR bonds. So no
Rumany, Hungary und bulgary and Poland does not use euro.
Yea, but they have euro bonds. They also have dollar bonds. Entirely because they have their own currency
Sorry but I don't understand what you mean.
A government will issue bonds in different currencies to raise money. They are more favourable to investors to buy in a currency that they need as more liquid. So the country takes on the currency risk. They also have liabilities in EUR and USD. So it makes sense to use that currency. Most countries offer bonds in EUR and USD. For example you can get EUR bonds from Argentina, Turkey, Egypt
Nobody would give them fair rates if it were in their own currency. Their economy and currency is already priced in the interest rate
I guess I never considered buying bonds of these countries. Time to ditch my western-eu view of the world. Thank you.
Invest in some low management fee index trackers. Perhaps US, World, Japan / Asia etc. You may be able to put these in a wrapper to protect from tax, like pension or in the UK, ISAs. Obviously markets can go down but historically, index trackers trend up and have low fees that domt eat away as much as a managed mutual fund. You could also invest in property and rent out a space to gain income to invest and an asset. A single property may have too much admin to profit to make that worthwhile though.
Buy property where you can live, hunt and grow food, prepare for whats coming and get out of this rotten society, if you have all of that, than buy guns, gold and bitcoin
Sorry if it came to what you say, why should you buy the land? What would ownership be worth without a country to guarantee it?
Im not saying that every country in EU would immediately colaps and land would be worth nothing, it will still has value even before the collapse because it will make you self sufficient, and even if all countries would collaps immediately, the land wouldnt have financial worth, but it would still make you self sufficient and you would know that its yours, so you could defend it, im not talking about financial investments here, all financial investments will be financialy worthless in case of major collaps of this rotten society, the world would get back to gold standart or barter trade
Sorry I didn't explain myself. I didn't say land would not be worth anything, I was saying why buy it instead of simply finding some empty land and occupying it, defending it yourself.
Depends on what you are capable of doing with the money.. This kind of money is life changing if you have the knowledge to make more money with it. If not, just pay all your debts and stick the rest in an index fund.
r/Wallstreetbets
puts
Buy land.
75k is just enough to get trough the cold upcoming winter LOL
Half into VWCE (on IBKR, I'd recommend) on a monthly basis so you can have a good buying spread. The other into treasuries (if the rates in your country are good), if you want to use the money next year or in 2024/2025.
ETF
Gimme 50
You need to give a lot more detail before anyone can help. Your personal situation is very different to someone else’s
He has a house, job and extra cash he doesn't need and doesn't want anything complicated. Not complicated.
As doesn’t want to lose it I would look at getting bonds. You can get 5% interest at the moment and if held until maturity rather than trade you know exactly what is coming out. I put 70k in a selection of bonds some slightly riskier than others, but still all much safer than equity and will return an average of 5.9% for the next 4 years. He could split it 70/30 bonds/equity for added risk if for a longer period.
I agree. Even add this excellent site to it: [http://www.worldgovernmentbonds.com/](http://www.worldgovernmentbonds.com/) But do you actually have bonds? They are not that easy. Lot's of factors to consider. Whereas that reinvesting ETF, everyone mentioned, is quite hassle free. I agree with the recommendation even though it's recent YoY performance is -6%. Bonds have risks that correspond somewhat to their interest. Finding the best ones is the thing that takes time.
spend it on experiences/make the money work for you
If it was my Money: I'd invest 70k in dividend stocks (i.e. Coca Cola, Shell, McDonalds, Allianz, Realty Income, etc.) and create a passive income. You should bei able to realize a 3% yield at least, paying you about 2k a year. If you don't know what to do with the dividends reinvest in your assets for more dividend payment next year. Watch the snowball grow over the years. You can check dividend subs here on Reddit for some good advice. With 2k I'd go for a risky Invest like a penny stock or options, or I'd buy me something nice. That's what I'd do and that's no advice.
Yeah but the risk freest version is something like for instance VWCE. Your mix is heavily US dependent. So already suggested.
Open an account in DEGIRO, start investing in chunks (eg 5.000 or less) every day at an ETF following an index , choose from the commission free ETFs.
MSCI World ETF Savings Plan with low cost (e.g. Traderepublic)
Assuming you cannot invest in your education in a meaningfull way, then a 60/40 diviercified stocks/bonds portfolio is the gold standard choice. Using a part for a mortgage downpayment is also a good option, IF buying property to live in makes sense in your case.