Ask HN: Where would you invest 30K EUR? For different reasons (hard work, luck) I have brought together a significant (for me at least) amount of money that I am cautiously keeping safe in the bank. Amount: 30.000 Euros I never have had any thought about investing. But I think is time to make something intelligent with this money. It is worth to say that it is money that I can live without it. What would you do with this money if your intention would be to make it grow? |
More risky, higher-payoff, would be a peer-to-peer lending platform.
Best off, use that 30k EUR to support yourself while you build the next billion-dollar unicorn startup. Or you could always invest in mine.
You already lost money in crypto, because you don't know what you are doing, so do not listen to people that advice to by index funds, it might have the exact same result....
Just check how long it took NASDAQ to go back to new highs after the dot com bubble or check Japan - Nikkei stock index from the 1989 and how far off it is today almost 30 years later...
https://finance.yahoo.com/quote/%5EN225?ltr=1
As with everything, you'll need to educate yourself and spend the time doing it so... unfortunately, there are no shortcuts...
Think about it, if you want to fly a plane, would you ask here for advice how to do it?
If things go well, you can keep the website or sell it for more than you bought it. If the revenue doesn't improve or becomes smaller you can sell the website and get some of the money back. Either way, you'll learn some new things.
That's a 40% yearly ROI. Do people really sell at such valuation?
What is the timescale?
1-7 days: go to the casino, bet it on red
1 year: just keep it
5 years: low-risk investments
>10 years: high-risk investments (more volatile, but larger expected payout)
It's always nice to have a bit of money on the side for unexpected expenses (eg. car breaks down) or if you should find yourself without a job for a few months, or if you need a down payment to buy an appartement.
If your money is tied up in investements, it's just going to be a hassle to get to your money, and it's going to cost a lot in fees if you need it sooner than later.
My tips/rules:
- buy some books about value investing and read them(don't only buy)
- NEVER buy stock from recommendations
- avoid mainstream media about finance if you can't take it 100% as entertainment. I currently only laugh at analysts when I see it, for instance
- if you mess up, sell it and accept that you lost money
- don't invest in risky stuff a huge percentage, you first need to understand your emotions and how good/bad you react when it falls. this is something you can develop in many years of investing
- as a beginner, have at least 3 types of assets(government bonds, REITs, stocks etc)
- of those at least 3 types of assets, never have 10% of more than any
- feel free to buy crypto, but don't put over 10% in an asset class(crypto)
- don't buy things which you would want to check prices regularly, humans can't handle it
- would you lose your sleep if you lose 3k out of 30k? if so, diversify more
- prefer stocks over indexes, but in the beginning, considering buying a lot of indexes and some stocks you like for you to get the feeling, also other assets types as I've mentioned above
- have at least 80% invested in simple and boring stuff(and change that when you are more experienced, but now, you are a terrible investor, I still consider myself a terrible one).
- create a google spreadsheet and keep track of everything you do. have one sheet that has all the transactions you made, reasoning(why?), prices, mood etc. you don't need to make it fancy, if you have it all listed, as I've told you do to do, you can always create other sheets based on this info, such as tracking your performance etc - avoid tracking your performance, warren buffet got like 17% yearly over a few decades and he's the outlier, don't expect to make more than this and also don't go for opportunities that are too good
- learn how to read a balance sheet of a company it will be good also for your working life
- try to invest every month a value, rather than in big amounts, like in fitness, if you want to get fit, going to the gym everyday is better than going once and working out for 12 hours(good luck with that)
- don't do trading, it is a zero sum game
- don't forget that you aren't smart and much less smart than the market, so don't try to be smarter than anyone
- save and invest, but don't go to crazy about it
- don't move your assets around(selling one and buying other) too often, give yourself limits, like 10 times a year. I haven't sold a stock for 5 years and I'm doing well, I promise.
- don't talk about investment with friends or share your gains, you want to make money and grow your assets, not receive some attention you didn't receive from your parents. I see a lot of people doing this mistake and people can either start to be envious of you, or recommend you bullshit, so just say that you invest in some stuff, or even don't mention it at all, if people ask.
My investments have outlived everybody "I personally know"'s trading career and people are now kinda of envy I took the path of taking it slow and accepting I'm dumb. I just accumulate. I don't believe anybody can make money consistently, for a long period of time, doing trading. Avoid trading. Feel free to try it with very little money, so maybe you lose and give up, or if you win(the worst lesson you can get), give it time, you will eventually lose.
if you plan to need the money within 10 years or less, or can think of plausible scenarios where you would be forced to sell the investment within 10 years or less, it is probably not a great idea to invest the money in the stock market or any similarly volatile investment.
why? because stock prices are volatile and can decline unexpectedly, and may take the best part of a decade to recover, and you don't want to be forced to sell your investment after it has lost value.
if you do want to consider investing in the stock market, some reasonable entry points to start reading are:
https://www.bloomberg.com/features/how-to-invest-a-million-d...
Tons of good skills could go long way.
Way longer than "investing" in someone else's ideas
Earn a worthwhile degree if you don't have one and have the time and it would make a difference in your life.
Learn how to start a business and start a business.
I am wondering now if I can find ways where the money can generate money and therefore I can enjoy of more "free" time.
20% keep in cash/gold
10% into some startups via a crowdfunding site
please do NOT get the FOMO and punt it on Cypto!!!
Too late.. as a stupid experiment I bought, at the beginning of the year, 1500Euros in crypto currencies worth it now 329Euros :/ :)
> - avoid mainstream media about finance if you can't take it 100% as entertainment. I currently only laugh at analysts when I see it, for instance
This is because I am asking in HN and not in Bloomberg :), to receive mature and rational experience sharing and not hype bullshit ;)
Could you please elaborate on this? Suppose, I have x as my savings, should I invest only 30% of that in each of these and hold the rest in cash? Is that what you meant? Thanks.
It just shows the importance of diversification and mitigation of risk, and real diversification, which means that you aren't diversifying between 5 oil companies stocks, but different types of assets, maybe even contradicting assets, so it hedges you a bit just in case one goes down, the other goes up.
So tha greatly reduces the risk of the OP losing all his money(it can still happen) meanwhile give him some time to figure out things by himself.
... life happens ;-)