Whats the best way to invest 10K Euros?

[abdullahtawhid]

I have a lumpsum payment of 10k Euros coming my way. Whats the best way to invest it? I am based out of Germany

I am thinking of creating a TR account, put this into the Tagesgeld there. And over a period of 1 year invest it into a combination of

1. Index Funds - S&P500, FTSE All World, MSCI World - 65%
2. Stocks (Mainly Tech Stocks) - 25%
3. Bitcoin - 5%
4. Gold - 5%

I also do have a personal loan (2.5% Interest) that has 3000 remaining. Or I can also make additional payments into my mortgage (max 5k, 2% interest). But I think investing gives me better returns.

What do you guys think?

 

[newjerusalem18]

@abdullahtawhid Maybe it's me, but I don't understand this:

Index Funds - S&P500, FTSE All World, MSCI World - 65%

Do you mean to invest in all of them or only one of them?

• S&P500 Includes large cap US Stocks, including Tech
• MSCI World includes large cap Stocks in 20+ Developed countries (Including US, and therefore S&P500)
• All World (or MSCI ACWI) Includes MSCI World + Emerging Markets Index fund.

Unless there is a really big difference in costs between those funds, I'd invest in ACWI for simplification.

If not, 90-80% World 10-20% EM would be a good bet.

I'd also add some small caps for extra diversification.

I am no expert on gold or Bitcoin, so I cannot give you any advice on those.

 

[keblish]

@abdullahtawhid

1. only.

Tech stocks are already in index funds you mentioned. You would be overexposed in tech, and stock picking is usually not good for the beginner/most investors.

 

[lostescape]

@keblish Are you saying a world index fund is not overexposed to tech? By what metric?

 

[resjudicata]

@lostescape It's by definition not overexposed. Ir is exposed exactly in proportion to capitilisaion. This is how they work.

 

[lostescape]

@resjudicata That doesn't mean the index or the share itself isn't overexposed to tech.

30 years ago, the market share of tech relative to the overall stock market was 20%.

 

[resjudicata]

@lostescape The index isnt overexposed to tech. It has a lot of tech because tech is big. It has exactly the right amount. Also, you're being abritrary. Pick any sector, compare the share vs some random point in time more than 10 years ago, write a sentence that says "sector X is under / over exposed" and you have the same argument for every single sector.

 

[lostescape]

@resjudicata

The index isnt overexposed to tech. It has a lot of tech because tech is big. It has exactly the right amount. Also, you're being abritrary.

You're being arbitrary. Considering you assume it has exactly the right amount because of some arbitrary calculation that determines the weighing of (an arbitrary) index itself.

I never said it was under or over exposed, nor exactly the right amount.

 

[abdullahtawhid]

@keblish Yeah. I see your point. Will diversify the stocks a bit more. Not exactly a beginner. But not a pro either.

 

[dvm0071]

@abdullahtawhid You can also go for a tech heavy ETF if you want higher exposure there, in which case you still avoid handpicking stocks which is pretty much gambling unless following the market is your full time job.

 

[jayama]

@keblish I agree that stock picking for beginners is a big no no, however seeing how all central banks are slowly removing the 2% longterm inflation goal from their policies, not allocating anything to gold/bitcoin sounds extremely risky.

I really do not see any other way to get rid of debt burdens except for hyperinflating currencies before rolling out CBDCs and so far every single decision taken by central banks indicate that this is where we are heading by 2030. Of course indexes and stocks in general should also increase in the nominal value in the process but I highly doubt it can outperform gold/bitcoin if eveything plays out that way. As impressive as it looks to see record breaking revenues left and right, most of the times the actual amount of products/services sold are dropping and the revenue is increasing only because inflated prices and I don't think this is sustainable, something will break earlier or later.

That being said, I also need to add that I have less than 10years of experience investing and am just now finishing my bachelors degree in investing, so I consider myself amateur at best so do not take this as financial advice and I'm open to hear opinions of others, especially if you see eveything palying out differently.

 

[dvm0071]

@jayama How is it risky to not risk your money on bitcoin? I don't see the logic here.

 

[meshaa]

@abdullahtawhid Go for 100% VWCE, and you will be a happy rich person

 

[psalmistsista2000]

@meshaa What's VWCE?

 

[vanoldenphatt]

@psalmistsista2000 Vanguard FTSE All World UCITS Acc ETF - an accumulating Global Stock ETF, investing in thousands of companies for a modest 0.22% a year

 

[erinnd56]

@vanoldenphatt Is it the same idea as Amundi MSCI world ?

 

[val42]

@psalmistsista2000 Vanguard FTSE All-World

 

[preciousme]

@meshaa I would only go for europe since the world is reverting back to isolationism and the us is gonna collapse once the dollar loses it’z value, but that’s just my opinion

 

[meshaa]

@preciousme Keep it for yourself. I’ll pour some more of my european money to USA in the meantime

 

[preciousme]

@meshaa Don’t cry after the election then hahahhaa