What would you do with €130K in savings as a 30 year old?

McGaggs

McGaggs wrote: »

Crypto and fiat currencies are all essentially valueless other than that there's an expectation that someone will be willing to exchange it for something of value. The main difference between fiat and crypto is that people have been believing in fiat for their whole lives (some likely still think it entitles them to an amount of fold from a central bank), and that taxes are payable in specified fiat currency. While currency has a value, it is still "worthless". This worthlessness doesn't matter unless you believe that everyone will suddenly no longer believe it has a value, or of its value relative to the items you need (whether they are another currency, food, raw materials, etc) fluctuates too much for your needs.

At the current moment in its young life, crypto doesn't have as much utility as a means of exchange as it would need to gain widespread acceptance. The current price seems too high, and someone will get burned when there's a correction. Who knows when this will be. Like someone mentioned, it's likely that most coins will go the way of the early car or aircraft manufacturers, forgotten by history, leaving losses for their owners. If crypto does catch on (and I believe it will, but probably not one of the current projects), there will likely be one winner and a bloodbath amongst the loosers.

There is money to be made, and I have dabbled in the past, but for most, the gains will be made at someone else's expense. Recommending investing a portion of someone's wealth in crypto is similar to recommending a portion to penny stocks and day trading. It can work, but only as a small portion and only if actively managed. Not everyone wants to work daily on their investments.

I wouldn't disagree with any of that. Nor would I suggest the OP to invest in something I've not done myself.

The J Stands for Jay

[Deleted User] wrote: »

I wouldn't disagree with any of that. Nor would I suggest the OP to invest in something I've not done myself.

I didn't think you would. I was just thinking you and jim2007 were both sort of on the same page, but at the same time not.

Sometimes I think that a lot of disagreements on this type of discussion are down to differing interpretations of the useage of words like 'value' and 'worth'.

patsy_mccabe

DaveQuinn2020 wrote: »

Some good advice here Op.

As a CFP, here is my 2 cents worth

1) Maximise pension contributions. Tax relief on the way in, and tax free growth (which is an underrated advantage in my view). Employer / company contributions are much more efficient than personal contributions if thats an option.

2) Low Cost Index Funds - Vanguard / iShares (Blackrock) or other with good global diversification. Watch the Tax, as tax on ETF's is complicated if you are not using a life assurance company.

3) Try not to get sucked into the latest investment mania (Crypto, some tech, Tesla etc). A well diversified portfolio, with an eye on value, will serve you well long term. The other options are speculative.

4) Have a plan, and stick to it. Think about your next 10 years and make deliberate decisions. Pay a fee-only advisor to help with this. If you are not paying for the advice up-front by way of a fee, you are paying for it elsewhere through commissions and higher charges.

5) Keep it simple.

Good informed advice here OP. Forget the next best thing. The laws of economics have never changed, despite what some would have you believe.

HillCloudHop

Are Investment Trusts a legitimate alternative to ETFs if I want to avoid a messy tax situation?
Micromanaging individual stocks doesn't appeal to me at all.

HillCloudHop

HillCloudHop wrote: »

Are Investment Trusts a legitimate alternative to ETFs if I want to avoid a messy tax situation?
Micromanaging individual stocks doesn't appeal to me at all.

Yes.

50 per cent in cash behind skirting board
50 per cent to gold ( coins only )
One guy from Robinhood killed him self after lost everything on stocks.First bird gone the next ones will be fly from roofs as Great Depression time.
https://www.cnbc.com/2021/02/08/robinhood-sued-by-family-of-alex-kearns-20-year-old-trader-who-killed-himself-.html
Sometimes better lose something than everything.

Timmaay

[Deleted User] wrote: »

50 per cent in cash behind skirting board
50 per cent to gold ( coins only )
One guy from Robinhood killed him self after lost everything on stocks.First bird gone the next ones will be fly from roofs as Great Depression time.
https://www.cnbc.com/2021/02/08/robinhood-sued-by-family-of-alex-kearns-20-year-old-trader-who-killed-himself-.html
Sometimes better lose something than everything.

Troll

The J Stands for Jay

[Deleted User] wrote: »

50 per cent in cash behind skirting board
50 per cent to gold ( coins only )
One guy from Robinhood killed him self after lost everything on stocks.First bird gone the next ones will be fly from roofs as Great Depression time.
https://www.cnbc.com/2021/02/08/robinhood-sued-by-family-of-alex-kearns-20-year-old-trader-who-killed-himself-.html
Sometimes better lose something than everything.

That person was dealing in options, not stocks/shares. Completely irrelevant here.

The first at all dont keep 130K at one account because accounts only secured up to 100K
But because government could change his mind at any time keep half away from any financial institution.
Never listen those who want your money to make you rich
Same as you not share your woman with anybody else same dont share your money.
Good luck !

Learpholl

DaveQuinn2020 wrote: »

2) Low Cost Index Funds - Vanguard / iShares (Blackrock) or other with good global diversification. Watch the Tax, as tax on ETF's is complicated if you are not using a life assurance company.

Sorry for the potentially stupid question but I'm new to all of this and had planned on investing on ETFs until I read more on here about the tax complications, but any chance you could explain how a life assurance company could help with this?

cronos

Learpholl wrote: »

Sorry for the potentially stupid question but I'm new to all of this and had planned on investing on ETFs until I read more on here about the tax complications, but any chance you could explain how a life assurance company could help with this?

I assume he's referring to a PRSA which people often contribute to through their employer.

AndrewJRenko

[Deleted User] wrote: »

The first at all dont keep 130K at one account because accounts only secured up to 100K
But because government could change his mind at any time keep half away from any financial institution.

You know that Governments can also change their mind about the cash you have behind the skirting board?

https://www.mapsofindia.com/my-india/government/why-has-the-inr-500-note-been-abolished

And then there is inflation...

The J Stands for Jay

Learpholl wrote: »

Sorry for the potentially stupid question but I'm new to all of this and had planned on investing on ETFs until I read more on here about the tax complications, but any chance you could explain how a life assurance company could help with this?

Life assurance companies can allow you to purchase ETFs through their products, either pensions or savings. For pensions, there's no exit tax to worry about, and for savings the life assurance company looks after the administration of the exit tax for you (and the deemed disposal is only on every 8th anniversary of the life assurance product rather than each individual ETF purchase).

AndrewJRenko

AndrewJRenko wrote: »

You know that Governments can also change their mind about the cash you have behind the skirting board?

https://www.mapsofindia.com/my-india/government/why-has-the-inr-500-note-been-abolished

And then there is inflation...

Inflation is when no goods in shops and plenty money in people pockets.We don't have problems with goods in shops and we have plenty people with no noney.To be honest I see deflation at the moment same as ECB.I wouldnt invest money to ETF and stocks at the moment due with bubbles on markets.As I said before better lose less than everything.At the moment the cash and gold the best for next couple years.Real gold I mean,coins not bricks.

djan

Deleted User wrote: »

Inflation is when no goods in shops and plenty money in people pockets.We don't have problems with goods in shops and we have plenty people with no noney.To be honest I see deflation at the moment same as ECB.I wouldnt invest money to ETF and stocks at the moment due with bubbles on markets.As I said before better lose less than everything.At the moment the cash and gold the best for next couple years.Real gold I mean,coins not bricks.

Inflation occurs when money is being printed, this is happening worldwide as countries are struggling with mounting debts.

Am truly surprised no large scale crash has happened apart from the momentary blip around march.

Definitely would be diversifying with a good % in cash ready.

djan

djan wrote: »

Inflation occurs when money is being printed, this is happening worldwide as countries are struggling with mounting debts.

Am truly surprised no large scale crash has happened apart from the momentary blip around march.

Definitely would be diversifying with a good % in cash ready.

Can you tell me please were I can get some freshly printed money for free ? Same as other people ?
Let's think about when support of economy will be ended.Once central banks will bring rates up the markets will be down,once they will down the invested money will start burn .
Today bubles will not be tolerated by central banks for long.

cronos

Deleted User wrote: »

Can you tell me please were I can get some freshly printed money for free ?

Depends if you are a US citizen.

piwyudo0fhn57b

Buy a house of your own. Or travel, start traveling, working and living across the world.

mrasgar

For people expecting stock market crashes due to inflation/money printing: traditional wisdom would suggest that assets like land, houses, and business (and their stocks) would inflate over time.

Why do you expect the reverse, i.e. a drop in stock prices?

Prices go down when people sell their stocks. If people sell businesses/stocks, where would they park their money in an inflationary environment? In the bank (and lose value through negative rates and inflation)? What would they buy instead? Everything else is already bought or overbought, and as good/growing businesses will continue to make money they're much safer bets.

My prediction is we'll see no major stock market crashes from current market levels in the next few years (apart from very short blips like around March 2020 in case of unforeseen events), at least not outside of slower growing economies like US/UK.

The J Stands for Jay

mrasgar wrote: »

My prediction is we'll see no major stock market crashes from current market levels in the next few years (apart from very short blips like around March 2020 in case of unforeseen events), at least not outside of slower growing economies like US/UK.

When I see predictions like this, I start to get worried.

I regurgitate the news

Put it into crypto, gold and silver

You're savings will be devalued a lot in the coming years with the money printing so protect yourself and profit from it

Sydney Melted Studio

Sydney Melted Studio wrote: »

Buy a house of your own. Or travel, start traveling, working and living across the world.

It will be difficult have a house and travel for work across the world.It will be also too hard do it during this hard times of Covid.But your point is really good.

Unfortunately many people does not understand that mortgage and house when they have no family is anchor.

Same as they believe that they will have profit from ETF until end of them life without any risk.The more them will put money in stock market the less inflation we will have in future.Because the less people will be very rich the more people will have no money.

The today advertisement of ETFs,apps of stock markets,pension funds reminds me Colgate toothpaste.Once you will use it your tooth will always white,protected and you will never see dentist !

I regurgitate the news

I regurgitate the news wrote: »

Put it into crypto, gold and silver

You're savings will be devalued a lot in the coming years with the money printing so protect yourself and profit from it

The people who printing money does not want them money devalued ! And people who control central banks does not want this too !

Cash and gold coins because if you will need money you will only have sell the coin not cut the brick.

dubrov

Revolution 1917 wrote:

The people who printing money does not want them money devalued ! And people who control central banks does not want this too !

That's like saying people who withdraw money at an ATM do not want their current account balance to drop.

One is an inevitable consequence of the other.

In saying that though, the gold ship may have already sailed

dubrov

dubrov wrote: »

the gold ship may have already sailed

No if we talking about save money not secure investment.
Other words look at price dynamics since 2011 ( when I actually started put money in gold )
And today prices
Perfect cover from inflation ! Plus profit ! Safe profit !

AndrewJRenko

Deleted User wrote: »

Inflation is when no goods in shops and plenty money in people pockets.We don't have problems with goods in shops and we have plenty people with no noney.To be honest I see deflation at the moment same as ECB.I wouldnt invest money to ETF and stocks at the moment due with bubbles on markets.As I said before better lose less than everything.At the moment the cash and gold the best for next couple years.Real gold I mean,coins not bricks.

Inflation is when your euro behind the skirting board is worth less this year than last year. Ireland has had low but fairly steady inflation over the past decade.

Deleted User wrote: »

No if we talking about save money not secure investment.
Other words look at price dynamics since 2011 ( when I actually started put money in gold )
And today prices
Perfect cover from inflation ! Plus profit ! Safe profit !

How much profit have you made since 2011?

AndrewJRenko

AndrewJRenko wrote: »

Inflation is when your euro behind the skirting board is worth less this year than last year. Ireland has had low but fairly steady inflation over the past decade.





How much profit have you made since 2011?

Your information incorrect,I dont remember 1550 dollars prices in 2020 .It looks like you far way from investment in gold and you dont know what is inflation is.

AndrewJRenko

Deleted User wrote: »

Your information incorrect,I dont remember 1550 dollars prices in 2020 .It looks like you far way from investment in gold and you dont know what is inflation is.

Here's what inflation is; https://www.investopedia.com/terms/i/inflation.asp

A decline in the purchasing power of currency over time.

Are all these charts all wrong as well?

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

https://www.gold.org/goldhub/data/gold-prices

Everyone's out of step except you?

AndrewJRenko

AndrewJRenko wrote: »

Here's what inflation is; https://www.investopedia.com/terms/i/inflation.asp

A decline in the purchasing power of currency over time.

Are all these charts all wrong as well?

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

https://www.gold.org/goldhub/data/gold-prices

Everyone's out of step except you?

I just would not like explaining the truth to person who operate other sources theories.Lets say you are right.

In nearest future we will see plenty posts with questions from new born investors about how get money lost trough ETF back.

I am finished here.Best of luck to all !

AndrewJRenko

Deleted User wrote: »

I just would not like explaining the truth to person who operate other sources theories.Lets say you are right.

In nearest future we will see plenty posts with questions from new born investors about how get money lost trough ETF back.

I am finished here.Best of luck to all !

I'm not operating theories here. I'm presenting facts.