I have 300k standing on my paypal

[momsage]

@makaylaglynn Holy shit man, paypal is the least safe place to have any kind of money. You can lose your entire savings in a heartbeat.

Info: Did you properly file your income taxes in Germany?

Once you have that all figured out make sure to have your money transferred to a proper bank account ASAP.

 

[makaylaglynn]

@momsage

Info: Did you properly file your income taxes in Germany?

Yes, I have correctly declared all that income. Any particular reason why you are asking?

 

[zjmcdon98]

@makaylaglynn >Any particular reason why you are asking?

I mean no offense, the fact that you would let 300k sit on a Paypal account makes people assume (at least me for sure) that you're not really financially savvy.

 

[makaylaglynn]

@zjmcdon98 Yeah but breaking the law and badly managing your money are two very different things.

 

[momsage]

@makaylaglynn That's good because that should make it relatively "easy" to just transfer it to a bank account. They will probably still ask questions though.

But the last thing you want is not having access to your money or being investigated for suspected financial fraud. I wonder if there is any other person in the world with 300.000 $ balance in their paypal, lol.

That is the first step, get a bank account, preferrable three different ones with three different banks and put 100.000 in each of them.

As long as you transfer them into Stocks soon you can also just go with a single bank account. (only a balance up to 100.000 € is secured ... if the bank goes bankrupt you lose anything excess of 100.000 €cash. You stocks would not be affected of course)

 

[makaylaglynn]

@momsage Thanks for the suggestions! Are you saying I should invest all of the 300k into stocks? I thought the general suggestion was to diversify. Doesn't putting all the money in stocks contradicts the diversification argument? Why not putting some in a saving bank account and earn some interest?

 

[momsage]

@makaylaglynn

1. there is no savings account that gives interest. But of course you should have some cash "on hand", both for when you suddenly need it, but also if you suddenly find a really good investment idea.
2. You invest into an ETF that tries to simulate the entire world economy. Depending on which one you choose it can have hundreds of companies of almost all fields in it. That is how you diversify. So yes, you can have a really big diversification just by buying one single ETF.

The best time to invest is also statistically speaking always right now. But of course in reality there are good and bad times to invest. But you can't know in advance which is the best time, If you invest a huge amount of money like 300.000 $ you would invest it bit by bit, for example 10k every month.

 

[serpentofdoom]

@momsage

You invest into an ETF that tries to simulate the entire world economy. Depending on which one you choose it can have hundreds of companies of almost all fields in it. That is how you diversify. So yes, you can have a really big diversification just by buying one single ETF.

I'm generally a fan of these ETFs, but remember with them you are mostly just investing your money into the biggest of the big megacorps, and mostly focused in the big economies - US, UK, Germany, Japan and sometimes China.

 

[momsage]

@serpentofdoom That depends on the ETFs you are buying, as a general statement what you said is not correct.

 

[serpentofdoom]

@momsage Well obviously it does not apply to $MJ or $RUN. OP mentioned ETFs that simulate the entire world economy, for which the MSCI All-World ETFs are a popular choice, and what I said applies to those.

For example: https://www.justetf.com/de-en/etf-profile.html?isin=IE00B4L5Y983#overview

https://www.justetf.com/servlet/download?isin=IE00B4L5Y983&documentType=MR&country=DE&lang=en

Geographic breakdown, USA 65%

TOP HOLDINGS (%)

APPLE INC 3.95

MICROSOFT CORP 3.21

AMAZON COM INC 2.62

FACEBOOK CLASS A INC 1.38

ALPHABET INC CLASS C 1.27

ALPHABET INC CLASS A 1.25

TESLA INC 0.95

JPMORGAN CHASE & CO 0.83

JOHNSON & JOHNSON 0.76

VISA INC CLASS A 0.70

TOTAL 16.92

 

[momsage]

@serpentofdoom You are focussing on MSCI World, but there are other ETFs that emulate the economy. And you can also mix them. You also mentioned China, which is not part of the MSCI world, that one only included developed countries. MSCI world also only included large cap (big companies), but you can also get ETFs that include or focus on smaller companies. (Although generally speaking it was historically smarter to focus on large cap iirc)
The point is that you have to do your due diligence, in this we agree.

 

[ninca11]

@makaylaglynn The saving interests are below inflation I think so the money would eventually lose a lot of value...

 

[ibloggospel]

@makaylaglynn You will have to pay most likely taxes into any country you introduce that money to.

Any serious bank will ask where the money comes from and ask for statements that support it.

Depending on your life goals investing can be done safe-ish, or riskier.

Definitely do contribute to a retirement fund, be it your own or the public one.. being old is expensive and it sucks when people (perhaps like you) privatize profit and socialize costs.

 

[makaylaglynn]

@ibloggospel

You will have to pay most likely taxes into any country you introduce that money to.

But what kind of tax are you referring to? I have paid income tax on those money already in Germany?

 

[keepthesoninyoureyes]

@makaylaglynn OP is talking about remittance based tax systems. Germany is NOT a remittance based tax system.

 

[makaylaglynn]

@keepthesoninyoureyes Thanks! But if the other country where I may move in the future is remittance based, does that mean I will have to pay remittance tax to that new country on the money I transfer to that new country?