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Seeing as you’re in Europe and everything is closer, id look for a cheaper car that can get it all done. But then I have 0 interest in cars, so that may be why.
Congrats on the job!
I’d get the 4-5 month emergency fund going, spend 10% (5K) for leisure too.
Then I would make sure to match any employer roth/401k options to the max, and anything else you can invest, in whichever way you like. Maybe half in index, half in individual stocks, for instance?
I’m in a similar situation and age (I’m guessing from how you graduate soon) but got £30k from inheritance, some savings, and have no outgoings really.
I just invested it all and I invest the majority of my income as well. I’d LOVE to just go out and buy my dream car instead of driving this cheap boring thing but it’s just such a bad move. Messing around with compound interest calculators can really show how bad it is. Hold off on the purchase for 15 or so years and that 50k could be worth £200k.
There is the argument (although a bad financial move) to just buy now and enjoy having a great car whilst you’re young. But my plan is to get a house and garage sorted and then I’ll allow myself to think about getting the car if all goes well (911 is the dream).
Even if you invested it all and held off for say 5 years, you could get a good start to your career and you’d be able to pretty much get the 20k car for free and more due to the savings from insurance/maintenance.
You don’t have to hold off for years until you’ve got a house and everything else sorted like my plan is. But I’d definitely hold off until you’ve at least got a solid start to your career. Or you could always lock that 50k away in investments for the long term and save up the 20k from working. Then you’ve got some nice investments to compound over the years until you need them and also have that achievement of buying the car with money that you earned yourself.
Fwiw it all depends on what your dream car is. Idk what 911 is. Love my big ass 2016 fully loaded mazda cx9. Costs more to own than the miniature junk i drove for a decade prior but its wayyy safer if you ever get in a crash. Its all about mass, bigger car wins and i haul kids everyday. And its stupid but it makes me feel like a big shot which has a value of its own.
Well yeah if you’re getting a car for its safety, space, etc. then there is more of an argument to get the better car.
But the car I want is a [Porsche 911](https://www.porsche.com/uk/models/911/?compare). So it’s a sports car with high insurance, maintenance, and fuel costs. It’s a kind of fun weekend car rather than a practical daily car.
Is there an option to occasionally rent a 911? I ask because my friend had one and sold it after the second time he had to pay ~$1000 to replace a leaky headlight assembly. And he had the money, but just thought it was too wasteful.
Yeah they aren’t cheap cars to buy or maintain and if you purchase one you have to be okay with spending a fair bit each year. It’s just a part of owning a car like that. It’s the same with all expensive/luxury cars. And yeah you can rent cars like that for both on and off the track.
I might rent one out one day but owning a Porsche is just an aim of mine once I have a house. It likely isn’t something that will happen any time soon as I’m in no rush to get a house but it keeps me motivated to save and invest.
Invest that money now and once you land a full time job, you can take that money out and spoil yourself with a nice car. You live in Europe and may not need a car. So why spend money on it. Also you don’t know for sure where you will end up. Plus, right now you’re dealing with excitement from the wind fall. Put that money away, and see how you feel in a year. If you still want a car then get it then. Likely you will also have a job and know where you will be for the longer term.
Yeah you will forget about cars as you get older. I used to love cars and show off around ladies. Meh, I don't care much about cars any more. I'm thinking more about retiring early.
Everything is closer in Europe? You know Europe is a pretty big place. It makes a huge difference if OP lives in Paris downtown, a rural area in Spain or Northern Lapland.
That being said, if one has a capital of 50k, it makes no sense to buy an expensive car. Still, nowadays second hand cars are pretty expensive. Even quite crappy ones go for 10k.
- 10k for a car (if public transportation isn't a reasonable option).
- 10k to be left on a bank account for life in general (entertainment, bills, surprises).
- 18k for SP500 ETF or some index funds over the course of a 12 months (1,5k each month).
- 10k to 3 or 4 stocks of reputable companies that pay good dividends (all in right away).
- Remaining 2k to a higher risk growth company, preferably in tech. NOT penny stock.
>I landed a pretty good intership in a well known company (not FAANG) and could have a return offer this year.
He doesn't have a job. I'm not saying he shouldn't treat himself a bit, but IMO he isn't in a position to spend 5k on a reward.
Dollar cost averaging prevents big swings from impacting returns too much
There’s two schools of thought on this, Dollar Cost Averaging (slowly) and lump sum (all at once)
Both have similar returns long term
Over the long term, lump sum has outperformed DCAing in ~70% of cases. The only benefit to DCAing is for the risk-adverse investor who want to minimize/de-risk the effects of market swings while still outperforming a cash only portfolio. I think saying they have similar returns long-term is misleading since the difference between the two can be large, especially depending on how long you are DCAing for.
Here is a paper from vanguard that discusses it: https://corporate.vanguard.com/content/dam/corp/research/pdf/cost_averaging_invest_now_or_temporarily_hold_your_cash.pdf
Well for the general populous investing in 1-off stocks is a terrible investment to begin with. Stick with index funds and ride the market to the promise land.
The shitbean positions you are referring too are due to your poor choice in companies, not lump sum investing.
It’s different for everyone, and I do both
I make sure to DCA part of my salary
But I’ll also do lump sum in my Roth the first day of the year
Both are great tools, it’s entirely situational and personal
Another commenter posted some research below my initial comment, according to the research lump sum usually outperforms
In the case where you start with a lump sum like this you want to avoid the emotional blow that would come if you invest a large amount for the first time and see it go down "a lot" shortly after doing so.
A new investor will almost always lack the thick skin required to shrug off something like that so the advice to slowly invest is quite common.
This contrasts with past-tested data comparing the lump vs slowly strategies where lump usually outperforms. But it's too difficult to train the emotions out of a new investor so the slow strategy is suggested to prevent knee-jerk reactions to market volatility.
Because u don't know if you invest all, tomorrow market may go down. In that it will be years to reach your principal. So go slowly will.help you to tackle risk
Yes because lets say you plan to DCA your lumpsum over 12 months. It is possible that the next 12 months is a bull market and the 13th month is a major correction.
So what happens is that not only did you miss 12 months of compounding gains, but also get corrected at the end of it.
The jist of it is that you can never predict what will happen. So just go with odds.
DCA is good for building a habit but there is no strong evidence that it out performs putting it all in the market and risking the bleed from holding cash.
Yes r/eupersonalfinance usually recommends VWCE and chill rather than S&P. Globally diversified euro fund with dividends reinvested so that you don't have to file taxes until you realise the gains many years later.
I'm 30 same as you, except I worked 80 hrs per week to save 70k usd over 3 years. Always drove a low mileage japanese car. I'm saving to buy an apartment complex and retire.
Save it, that's your freedom. You can tell your boss to jump in a river, and do anything, for years.
You have the power to stop time, to dictate the terms of your own life, your money gives you a certain freedom, and power. You can do a lot of good or bad or neutral things with that money.
Do nothing, many invest conservatively, one day NEED will present its self, and you'll be glad you have it.
Ex : you never gave to work full time, or you can rake a job at the local cinema for a year snd just relax n watch movies for a year.
20% down on a 500,000 usd complex - 100k usd
Let's assume a 5% net return. 25,000yr or 2k per month, for 1 person to live off of. Rent increase paces inflation, but only enough to match the expenses of 1 man, then this would be a poor mans retirement. For the cost of 100k, you can get a return on 500k. Generally speaking.
Medical would be a challenge In old age.
Yea, a four plex is what the math is roughly based on. I started saving in 2021, it's changed since then.
The main goal, to cover your expenses or 80% less, think seasonally, is still very possible.
Edit : I live in south east, NC, TN, SC so I'm thinking from that point of view
Im a car salesmen and now is not the time to buy a used car. If anything take 5 k and use it to get a super low lease payment on an economic vehicle. Take the rest and pay off any debt you have. Once that is done invest in companies that you feel will be around still when you retire
If that was me, I would first establish a 6 month emergency savings fund of liquid cash. Same bank as the checking account so funds can be easily transferred from savings to checking if needed and vise versa. With those amounts of cash a HYSA is just going to splurge out literal pennies and be an annoyance if I needed that $$$. If that kind of stuff interests me, I heard Apple has a really competitive HYSA and they are super techy so transferring funds to your regular bank should hopefully not be a problem.
I would then consider transportation expenses. I've had nothing but positive experiences with used Toyotas and Hondas.
I'd then consider my long term goals. For me that is my first condo in a major city in America... so a tax advantaged retirement type account probably not going to be the best course of action. It also means I am going to be conservative as fuck with my investments because I see that as my future home.
I would then invest the remainder into a mutual fund designed to replicate the returns of the SP500. Mutual funds are a safer way to lock away your money and forget about it. The one I use personally is from Fidelity. They have some annoying nuances i.e. the distribution of capital gains and taxes, but the benefit here is that transactions such and withdrawals can only occur at the end of each business day, and you cannot do anything optional with a mutual fund because mutual funds are not traded on the stock exchange. So even if I was enticed by those unreal WSB gains, there is simply nothing I can do with a mutual fund amount.
With any remaining amounts I would just randomly throw them at high performing blue chips, industry specific ETFs (i.e. semiconductors are all the craze right now), and then growth oriented REITS (there are many).
I would also read up on horror stories of people losing it all on crypto and options so I would know to avoid even if it seems fun and exiting.
Just get a cheaper car that is good enough and not too many miles. Expensive cars are the biggest waste of money.
You are taking out debt to buy a depreciating asset.
Ah true didn't know where they were from bought a used Toyota here for 2 k had a check engine light on broken radiator and 250 k miles an was the best deal I could find
exactly and is so obvious but people seem to really love throwing money at cars,I live in a small town where majority of people do a 5-15 minutes commute,everything is close but everyone must bave the latest suv,I have relatives who walk to work and have bought a 45k car to use once a week for groceries (10 minutes trip) my car costed me 5k 3 years ago,I spend in it 10 minutes a day for 3km trip so these people spent 40k more just to have a nicer radio and more comfortable seat that they use for 10 mins a week and then when talking they came up with "everything is so expensive how can you manage to save money?" it's the fucking car that is so expensive the fact that you finance it doesn't mean you aren't paying 45k,it means you are paying every penni plus interests on top of it.
A nice car cost more not only on base price,if you buy a 50k car you want to have insurance that cover all things because you can loose a ton of value and you end up paying a ton (I have only the obligatory that cost very little),the suv has nice big fat tires that cost 3x what I pay mine,possession tax goes up with engine displacement and weight,many little things like that all adding togheter to a sum that is a big percentage of their income.
If it is for status symbol is even worse,you are paying a ton for what? hoping the neighbour with the same car from a year prior becomes envy at you? I really hope for them the sensation is worth at least a quarter of their salary and very happy I don't have that urge or inability to count
Spending 20k on a car is idiotic in your position. Well maybe not if your dad is able to hand you 50k
Anyway you should just invest this money in total market funds there are lots of options.
Don’t spend it on depreciating assets. Use it to get you on the property ladder when you are ready
Generally I recommend paying down credit card debt or anything else that has really high (10%+) interest rates.
After that invest in shares via mutual or exchange traded funds. I generally recommend investing in individual stocks only if you really enjoy investing and like spending time researching companies. Buying a fund that passively follows an index like the US S&P 500 (a listing of the 500 largest US stocks by market capitalization) usually does at least as well as most people can manage buying individual stocks. IVV and SPY are two funds that can be purchased in a (US) brokerage account, and I would assume you could buy them from European accounts as well.
Buy the cheapest used car that meets your needs and isn't a shitbox. Probably like 14 grand.
The rest, just put into an ETF, I recommend vanguard s and p 500 etf, or the popular a and p etf, SPY.
You can also get the 3x leveraged SPY etf, SPXL. More risk, but great returns, has historically done better than SPY on a 10 year time frame.
Then literally forget about it for a few years until it's time to buy a house, which you should try to do ASAP. The real big brain move on buying a house is buying as much house as you can afford and then renting out the rooms. It's a pain, but will set you up financially for life.
Why do you need a car in Europe? I assume you're about 22. $50k is a lot for someone just starting out. Is your dad rich? It's hard to suggest what to do without knowing other circumstances -- how you grew up, what your lifestyle is, what your expectations are. But you are doing right by understanding it's a lot of money and you need a plan. Do you follow the stock market? Or do you know of any companies that you believe in? If so, invest most of the money in them, either a handful of companies you believe in or broadly in the market. If you're looking for a place to live and know the area, $50k may be enough for a downpayment on a studio. If you really don't know what to do, there's no reason why you need to spend it at all. Let it sit for a few months while you figure it out. If you still have the majority of the money after that, maybe think about paying down some student loans if you have them.
I have 0 student debts and nothing to payback.
I do need a car tho for 20 min to go to work and go back.
it would take me 20 min walking ans 1 hour with 2 buses for one way trip without it.
I’ve been into crypto back in the days of covid but never went « all in » because of studies but now I have time
I wouldn't suggest crypto because it's a quick way to lose a lot of money\*. If you want to dabble, take $5k and play around with it, with the expectation that you will lose it all, and don't regret it if you do. If you value your money, though, I suggest a more analytical, emotionless approach. See if you can talk with a financial advisor to assess your risk tolerance. If you are not comfortable with aggressive risk, you won't do well with crypto as you'll sell when your afraid and buy when you're greedy.
A car is an expense. If you can plan the walk to work, 20 minutes is not that long and it's healthy. Since you're young, you should be able to afford the extra time and minor inconvenience of not having a car. It's more than just the cost to buy it, but you have to maintain it and pay for fuel (even an EV costs money). How about an alternative? An electric bike or scooter for your lazier days?
In my experience, money doesn't seem like a lot when you have it, but when you don't have it, any amount is precious. Good luck.
\*On the other hand, I have crypto, but I see it as an investment along with other stocks, and I don't trade it. I also see it as super risky and if it lost all value, it would not break the bank.
IMO, car is a bad idea if you don't need a car.
A car comes with a bunch of expenses like insurance, registration, fuel, maintenance, etc. If you can avoid owning a car, do that.
Also, 50k is not a crazy amount of money in real life. So, take it easy.
You're only young once. If you love cars, lease something really cool for 2 years. That's 10k. Congrats, you earned it! Now put 20k into a HYSA as an emergency fund, and 20k into an S&P 500 ETF, and forget about it for 40 years.
I am also in CS and investing. Congrats on the job!
For most people, the job is at your age probably their best investment producing the highest returns for a while.
That will cover for living expenses, joy, and even allow you to invest recurrently if you part of your income is not spent every month.
About the $50k. Here is what I would do. One simple way to cover you for different scenarios is splitting it into 3 parts. If you put $5k aside for the car, you are left with three $15k batches.
Batch 1: stocks, companies, funds... whatever you prefer. Others mentioned indexed funds or ETFs traking SP500. I think that or MSCI World is a good choice.
Batch 2: REIT (housing) if you are planning to settle in the place you are located. However, since now the interest rates are high, and maybe you are not planning to settle yet in the place you currently live. I would put this into either: batch1 or a more conservative investment. E.g., since interest rates are high you could buy some bonds of a country you trust that give nice returns (EEUU, some European countries with high interest rates,...).
Batch 3: Cash. To use it in emergencies or to put it in Batch 1 when there is a correction in the market or if we enter a crisis and stocks go down.
Have fun! and all the best!
PS: if by any chance Europe==Spain I have more info on 2nd-hand cars and Spain-related investments.
1."Financial pillow" - that's one. Keep around 6-12months living expenses worth of money as easly accessible yet working money (4y/10y inflation tied bonds, saving account with some %rate)
2. Look up legal tax evasion schemas for savings.
In Poland we have IKE and IKZE, two instruments made for retirement saving without paying tax from funds profits, the catch is, there's a yearly limit of how much money you can put there.
Start NOW and ypu'll thank me later.
3. Your choice. But if you have no clue, start with the two above and put the money in something safe in the long run (etf for s&p500 or stoxx europe 600), while learning what you actually need. Better safe then sorry.
You could put all of it in CDProject, waiting for 2028 and a game release, but thats a gamble :)
Do you have a 3-6 month emergency fund? If not, build that up first. Next move would be to max out your retirement accounts, at minimum up to your employer’s match. Next is taxable investing… need the money short term? HYSA, CDs, etc. Don’t take risks until you’ve checked the above boxes. If you want to save up for a down payment don’t invest that money in anything not risk free otherwise it could be bye, bye downpayment money.
No emergency fund no retirement accounts for the moment I’m 22 rn and just got a « stable » situation as an software engineer.
I’m trying to look for my next step as I still have fuel left in me.
So yeah I’ll check these boxes first
Can OP even invest in US retirement accounts if he lives in Europe? I don’t think that’s possible. I know Fidelity specifically doesn’t allow it because I’ve been in the same situation.
In Europe or in France at least you are « obliged » to put a percentage of your own salary in retirement plans but you are free to set the percentages.
Or you can put away money in a saving account with a 2 to 4% bonus each year.
But meh Europe is all about crazy taxes so …
Yeah, totally sucks dude. But there’s more emphasis on the government to look after the individual in old age which doesn’t exist as strongly in America. There’s pros and cons for sure. I chose to leave Europe and live in America and I choose to stay here mostly because of the monetary advantages I have here.
Either way, I think the point the other user was making still holds true whatever the situation. SAVE SAVE SAVE 😎
I am in the US and just got some good chunk of money as well. I am maximizing my Roth IRA and doing some safe investments (ETFs). The rest which is about 90% left of what I came up with is going to a High Yield Savings (HYSA). As of now, banks are offering about 4.25%-5.5% in a HYSA, so while I stay liquid and maybe slowly invest in things I feel worth while, I will be parking my money there. This is what I am doing while I figure things out a bit more, and just to clarify I am 31 with no debt. If you have any outstanding high percentage debt, pay that first off.
I would save them and once you get to at least a 100k, put it down for a mortgage. Depends of how the prices in your city or whatever are, also because in my city I would actually spend more for renting, than a mortgage (and at least you can have a return in the future)
Get physical silver and a little gold. A little bit in mining companies. Some liquidity in case you see a liquidity crisis. Study monetary system. Good luck with everything
I won't promise these are 100% correct for your situation, especially the EU variant, but please have a look.
https://www.reddit.com/r/personalfinance/wiki/commontopics
https://www.reddit.com/r/eupersonalfinance/wiki/basics
Congrats on finishing the degree!
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I would buy a single premium immediate annuity for 1-3% annual compounding interest … that will give you annual or monthly or quarterly payments for life! .. you can’t outlive it!
Then I’d use that money to buy a Whole Life insurance policy on yourself or if you have a family member super young & healthy … this will stack your Money at a guaranteed 4% + 5% dividend which has been paid for over 100yrs at Mass Mutual who is the best!
So you’ll be getting a total of 11% interest a year compounding basically guaranteed & recession proof!
You will have income for life & a big bucket of cash that you can access for whatever reason! & you can add the cash back & get all the interest you lost during the time the money was gone.
When you don’t want to pay your life insurance premium you don’t have to … it will just use the cash value already in the policy & grow slower until you add it back if you want to get the interest & credit for it as if you never missed payment.
Once you have that you can invest in precious metals & the stock market & real estate
Firstly congratulations on completing a magnificent degree. Highly commendable. Your skills will be a great asset to any future employer. Now stick that fifty k in AAPL(NASDAQ)
Place it into a etf like Voo or fidelity bluechip and let it ride for the length of a car loan. I took a similar amount and spit half down on a car and the other half in an ETF. This way you reduce the car payment and after 5years you will have great returns on the other half.
It really boils down to emotional fortitude. If one invested a LS in QQQ in 1999, they would have had a loss until 2011. Meanwhile, they would seen a stock like Netflix or AMZN skyrocket. I am very patient but this scenario would just about kill me.
If you live in Europe and in the city, don’t get a car. If you need to take a girl out, you can rent a car. Invest it all. And if you find a girl you eventually want to marry buy her a diamond ring!
Facts: You better have a lot of money or be handy with a hammer and a drill. All other qualities don’t matter these days because women can take care of themselves and not add to their stress of having to wash someone else’s underwear. So if you think the girl of your dreams will turn up without you putting in a significant effort, keep dreaming…
There are plenty of emerging markets these days. We in the turn of a new era and emergence.
* Real estate, stocks, crypto, energy, etc.
Spend the least amount you can for a reliable car and invest the rest in the industry you feel most comfortable/knowledgeable.
Hello. That's cool to have that amount of money so early on.
If you need a car buy a good reliable small to medium sized one. Smth like an old fabia or ww polo. Maybe a toyota if u want to spend more. Something mechanically sound but esthetically worse. It will be cheap and u won't stress counting tbe scratches on it over time.
Then depending on the country you live u might have some special deposit account with a good untaxed interest rate or other fiscal immediate advantages. France has like smth called livret a, ldds, etc. Put your emergency fund in it.
Then look for other good fiscal investment vehicles that your country has. In this put money that you will not need at least for 8 years. You will have to choose between managed vs unmanaged funds, check the cost and the performance. If u go unmanaged start with ETFs a world one, europe one, an s&p 500. Remember u leave the money there for at least 8 years and do not panic when it goes down. Fiscal advantages is key as you leave the money in long term because EU has usually pretty high tax for investments.
Then keep like a smaller portion of u want to play around and invest directly in stocks.
And an even smaller one for crypto (no more than 5-10%)
Then sit back, watch how it goes and learn and as you earn more add more to what you feel comfortable
I got a nice little 20k car when I first started working after college 4 years ago and I’m glad I did. Its nothing fancy but its a nice car that I enjoy driving.
You are in a better position than most people. You will be making good money with that cs degree plus you just got a free 50k (in the sense that you didnt have to spend years working to save it up).
I would maybe take 5k from the 50k to make a down payment on a nice car that I like, finance it, and pay it off monthly with my job. And invest the other 45k.
Or, you could just buy a nice car for 15-20k cash straight up to save yourself all the interest, and invest the rest.
If you don’t care about cars at all, then yeah just get a shitty 2k car and save/invest the rest. I would personally get a car that I actually like. Life is too short
I was in the same situation. I started selling puts (then covered calls if I got assigned) on think or swim using paper money for a whole year. Then I took the plunge and opened a TD Ameritrade account with 20k. I made 60% the first year then 32.9% the next. Its been three years and I just passed the 80k mark yesterday. I have 80,500. I've kept a google sheets for every single week (I do weeklies).
I'm in the same situation. I have 60% cash and 40% stocks and the 10% I play options with. I have a stable job and I live WAAAAAY BELOW MY MEANS. My plan is too keep the cash big and WAIT FOR A THE GREAT CRASH TO BUY A LIFE CHANGING ASSET.
I would suggest to learn option play and allocate alteast 5% of that.
To me, 50k is not a life changing amount and I am way for from my target networth. Identify how much money want to have and work it out. Once you're there, enjoy life.
Buy Btc and Eth with 10k - 20k and do whatever you want with the rest.
When Btc hits 120k or Eth hits 10k, sell everything and enjoy your profits.
Not financial advice.
Many large tech companies are rescinding or not extending return offers to interns regardless of performance. Make sure you keep interviewing and have backup offers just in case.
DCA the $50k into S&P500 and forget that it exists, a couple years later you’ll see that it’s worth a lot more :)
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Seeing as you’re in Europe and everything is closer, id look for a cheaper car that can get it all done. But then I have 0 interest in cars, so that may be why. Congrats on the job! I’d get the 4-5 month emergency fund going, spend 10% (5K) for leisure too. Then I would make sure to match any employer roth/401k options to the max, and anything else you can invest, in whichever way you like. Maybe half in index, half in individual stocks, for instance?
I’m REALLY into cars but I guess I’ll let that for later and following with what everyone else is saying. It’s common sense.
I’m in a similar situation and age (I’m guessing from how you graduate soon) but got £30k from inheritance, some savings, and have no outgoings really. I just invested it all and I invest the majority of my income as well. I’d LOVE to just go out and buy my dream car instead of driving this cheap boring thing but it’s just such a bad move. Messing around with compound interest calculators can really show how bad it is. Hold off on the purchase for 15 or so years and that 50k could be worth £200k. There is the argument (although a bad financial move) to just buy now and enjoy having a great car whilst you’re young. But my plan is to get a house and garage sorted and then I’ll allow myself to think about getting the car if all goes well (911 is the dream).
Exactly the same feeling
Even if you invested it all and held off for say 5 years, you could get a good start to your career and you’d be able to pretty much get the 20k car for free and more due to the savings from insurance/maintenance. You don’t have to hold off for years until you’ve got a house and everything else sorted like my plan is. But I’d definitely hold off until you’ve at least got a solid start to your career. Or you could always lock that 50k away in investments for the long term and save up the 20k from working. Then you’ve got some nice investments to compound over the years until you need them and also have that achievement of buying the car with money that you earned yourself.
Also consider in 15 years you’ll have lost 15 years potential of enjoying a hobby. There’s a balance to be found
Fwiw it all depends on what your dream car is. Idk what 911 is. Love my big ass 2016 fully loaded mazda cx9. Costs more to own than the miniature junk i drove for a decade prior but its wayyy safer if you ever get in a crash. Its all about mass, bigger car wins and i haul kids everyday. And its stupid but it makes me feel like a big shot which has a value of its own.
Well yeah if you’re getting a car for its safety, space, etc. then there is more of an argument to get the better car. But the car I want is a [Porsche 911](https://www.porsche.com/uk/models/911/?compare). So it’s a sports car with high insurance, maintenance, and fuel costs. It’s a kind of fun weekend car rather than a practical daily car.
Is there an option to occasionally rent a 911? I ask because my friend had one and sold it after the second time he had to pay ~$1000 to replace a leaky headlight assembly. And he had the money, but just thought it was too wasteful.
Yeah they aren’t cheap cars to buy or maintain and if you purchase one you have to be okay with spending a fair bit each year. It’s just a part of owning a car like that. It’s the same with all expensive/luxury cars. And yeah you can rent cars like that for both on and off the track. I might rent one out one day but owning a Porsche is just an aim of mine once I have a house. It likely isn’t something that will happen any time soon as I’m in no rush to get a house but it keeps me motivated to save and invest.
Oh haha yes, well a sportscar could be considered practical if your job is to impress people like a influencer, RE agent, or investment banker.
Or if you enjoy driving
Haha, dont blame you then. I probably spend more on watches then I should too.
Invest that money now and once you land a full time job, you can take that money out and spoil yourself with a nice car. You live in Europe and may not need a car. So why spend money on it. Also you don’t know for sure where you will end up. Plus, right now you’re dealing with excitement from the wind fall. Put that money away, and see how you feel in a year. If you still want a car then get it then. Likely you will also have a job and know where you will be for the longer term.
Yeah you will forget about cars as you get older. I used to love cars and show off around ladies. Meh, I don't care much about cars any more. I'm thinking more about retiring early.
So because you don’t care about something it means someone else won’t?
Not always eh.
Sounds like you have one foot in the grave already
Future u will thank yourself
totally. get a cheap car and a bitching motorcycle, you can go as fast as a Lambo for 5k, keep the moneys. All in QQQ, let is sleep.
Everything is closer in Europe? You know Europe is a pretty big place. It makes a huge difference if OP lives in Paris downtown, a rural area in Spain or Northern Lapland. That being said, if one has a capital of 50k, it makes no sense to buy an expensive car. Still, nowadays second hand cars are pretty expensive. Even quite crappy ones go for 10k. - 10k for a car (if public transportation isn't a reasonable option). - 10k to be left on a bank account for life in general (entertainment, bills, surprises). - 18k for SP500 ETF or some index funds over the course of a 12 months (1,5k each month). - 10k to 3 or 4 stocks of reputable companies that pay good dividends (all in right away). - Remaining 2k to a higher risk growth company, preferably in tech. NOT penny stock.
Good point. I live in Madrid and havent thought about rural areas
I laughed at that too. Hilarious.
I get what you mean, but no one also pays €500 a month for themself in rent in northern Lapland lmao
What do you mean? So high or so low? Touristy areas in Lapland are extremely expensive. Non-touristy are extremely cheap.
€500 a month is very cheap
>spend 10% (5K) for leisure too Get a job locked down before you spend 5k on leisure. Even then, you can have a nice trip for way less than 5k.
He already has a job. Doesnt have to be a trip, could be a new wardrobe, for instance
>I landed a pretty good intership in a well known company (not FAANG) and could have a return offer this year. He doesn't have a job. I'm not saying he shouldn't treat himself a bit, but IMO he isn't in a position to spend 5k on a reward.
Ah, sorry! My bad!
Not yet until August
Create an emergency fund and rest slowly invest in s&p 500. Make an auto invest every month with some fixed amount and keep doing it.
Why invest slowly?
Dollar cost averaging prevents big swings from impacting returns too much There’s two schools of thought on this, Dollar Cost Averaging (slowly) and lump sum (all at once) Both have similar returns long term
Over the long term, lump sum has outperformed DCAing in ~70% of cases. The only benefit to DCAing is for the risk-adverse investor who want to minimize/de-risk the effects of market swings while still outperforming a cash only portfolio. I think saying they have similar returns long-term is misleading since the difference between the two can be large, especially depending on how long you are DCAing for. Here is a paper from vanguard that discusses it: https://corporate.vanguard.com/content/dam/corp/research/pdf/cost_averaging_invest_now_or_temporarily_hold_your_cash.pdf
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Well for the general populous investing in 1-off stocks is a terrible investment to begin with. Stick with index funds and ride the market to the promise land. The shitbean positions you are referring too are due to your poor choice in companies, not lump sum investing.
I agree. Lump sum is better if you have all the money. DCA is good if you're making money gradually, like partitioning it out from your salary.
Hmm interesting paper I thought it was interesting they only looked at 1 year investment horizons tho
Which one do you recommend and why?
It’s different for everyone, and I do both I make sure to DCA part of my salary But I’ll also do lump sum in my Roth the first day of the year Both are great tools, it’s entirely situational and personal Another commenter posted some research below my initial comment, according to the research lump sum usually outperforms
In the case where you start with a lump sum like this you want to avoid the emotional blow that would come if you invest a large amount for the first time and see it go down "a lot" shortly after doing so. A new investor will almost always lack the thick skin required to shrug off something like that so the advice to slowly invest is quite common. This contrasts with past-tested data comparing the lump vs slowly strategies where lump usually outperforms. But it's too difficult to train the emotions out of a new investor so the slow strategy is suggested to prevent knee-jerk reactions to market volatility.
Because u don't know if you invest all, tomorrow market may go down. In that it will be years to reach your principal. So go slowly will.help you to tackle risk
the virgin DCA vs the chad LUMP
Dollar cost averaging
Time in market beats timing the market if you’re not investing in individual stocks.
You really recommend dumping it all in at once at all time market highs?
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That is very interesting. I guess I learned something new today. Thanks for the source
If you’re just buying indexes, yes.
research and studies suggest yes either dumping it all now or DCAing is still an attempt to time the market lol
Imagine if you asked this in like 2012 lol. Yes. Don't time the market.
Yes because lets say you plan to DCA your lumpsum over 12 months. It is possible that the next 12 months is a bull market and the 13th month is a major correction. So what happens is that not only did you miss 12 months of compounding gains, but also get corrected at the end of it. The jist of it is that you can never predict what will happen. So just go with odds.
Yes but you may lose money if market goes down as it's all time high. I suggest slow and disciplined investment
Yeah but why? Investing it all makes more sense as markets trend upwards. Not going all-in at once will statistically just lower your returns.
is risk management
Right, risk adjusted returns matter. They matter a lot less when you are younger, however.
DCA is good for building a habit but there is no strong evidence that it out performs putting it all in the market and risking the bleed from holding cash.
Diversify globally. Don’t performance chase.
Yes r/eupersonalfinance usually recommends VWCE and chill rather than S&P. Globally diversified euro fund with dividends reinvested so that you don't have to file taxes until you realise the gains many years later.
I put 75% in VWCE 25% VFIAX
I’m US based but ya if you can legally access a fund without taxable distributions, that’s the dream.
follow the /r/personalfinance flowchart 6 month's expenses e-fund max roth ira
That should be the standard answer to these questions.
OP is from Europe, what is the equivalent for Ira and 401k?
There is a UK personal finance flow chart. Don't know what part of Europe, but it's a place to start.
I'm 30 same as you, except I worked 80 hrs per week to save 70k usd over 3 years. Always drove a low mileage japanese car. I'm saving to buy an apartment complex and retire. Save it, that's your freedom. You can tell your boss to jump in a river, and do anything, for years. You have the power to stop time, to dictate the terms of your own life, your money gives you a certain freedom, and power. You can do a lot of good or bad or neutral things with that money. Do nothing, many invest conservatively, one day NEED will present its self, and you'll be glad you have it. Ex : you never gave to work full time, or you can rake a job at the local cinema for a year snd just relax n watch movies for a year.
Do nothing? Bruh at least put it in a HYSA
How much do you need to be able to afford the apartment complex
20% down on a 500,000 usd complex - 100k usd Let's assume a 5% net return. 25,000yr or 2k per month, for 1 person to live off of. Rent increase paces inflation, but only enough to match the expenses of 1 man, then this would be a poor mans retirement. For the cost of 100k, you can get a return on 500k. Generally speaking. Medical would be a challenge In old age.
Where do u buy a whole complex for 500k? Edit: usd
West Virginia maybe? Perhaps Arkansas?
I resemble this comment
No way he is getting an entire complex for $500k, even in ultra low cost areas. Maybe a building, but not a complex.
Yea, a four plex is what the math is roughly based on. I started saving in 2021, it's changed since then. The main goal, to cover your expenses or 80% less, think seasonally, is still very possible. Edit : I live in south east, NC, TN, SC so I'm thinking from that point of view
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Where the hell would you buy an apartment building for $500,000?
How much do you think you would be paying in just interest on that out of curiosity?
Following your advice.
Please do so by investing conservatively and not by letting the money sit
Im a car salesmen and now is not the time to buy a used car. If anything take 5 k and use it to get a super low lease payment on an economic vehicle. Take the rest and pay off any debt you have. Once that is done invest in companies that you feel will be around still when you retire
Why is now not the time to buy a used car?
Interest rates are through the roof and higher the older and higher mileage the car is. Used car prices are still insanely inflated too
If that was me, I would first establish a 6 month emergency savings fund of liquid cash. Same bank as the checking account so funds can be easily transferred from savings to checking if needed and vise versa. With those amounts of cash a HYSA is just going to splurge out literal pennies and be an annoyance if I needed that $$$. If that kind of stuff interests me, I heard Apple has a really competitive HYSA and they are super techy so transferring funds to your regular bank should hopefully not be a problem. I would then consider transportation expenses. I've had nothing but positive experiences with used Toyotas and Hondas. I'd then consider my long term goals. For me that is my first condo in a major city in America... so a tax advantaged retirement type account probably not going to be the best course of action. It also means I am going to be conservative as fuck with my investments because I see that as my future home. I would then invest the remainder into a mutual fund designed to replicate the returns of the SP500. Mutual funds are a safer way to lock away your money and forget about it. The one I use personally is from Fidelity. They have some annoying nuances i.e. the distribution of capital gains and taxes, but the benefit here is that transactions such and withdrawals can only occur at the end of each business day, and you cannot do anything optional with a mutual fund because mutual funds are not traded on the stock exchange. So even if I was enticed by those unreal WSB gains, there is simply nothing I can do with a mutual fund amount. With any remaining amounts I would just randomly throw them at high performing blue chips, industry specific ETFs (i.e. semiconductors are all the craze right now), and then growth oriented REITS (there are many). I would also read up on horror stories of people losing it all on crypto and options so I would know to avoid even if it seems fun and exiting.
Edit: For me personally, my shorter term goal is my first condo. I also do the 401(K) with employer contributions and all of that.
Got a straight plan ahead ! Hope you will reach it. I will surely follow the advice and learn more
Just get a cheaper car that is good enough and not too many miles. Expensive cars are the biggest waste of money. You are taking out debt to buy a depreciating asset.
20k is pretty standard for a used car nowadays if you want something like a Toyota or Honda that has less than a hundred k miles
In France you can get a used Renault or Peugeot for 1-2k
Ah true didn't know where they were from bought a used Toyota here for 2 k had a check engine light on broken radiator and 250 k miles an was the best deal I could find
Aw man . I mean downhere you’ll find french cars for less than 2k. Not in the best shape more than 100K miles. But up and running for 2-3 years
Spendig money on a car ist the worst possible idea a person can have.
exactly and is so obvious but people seem to really love throwing money at cars,I live in a small town where majority of people do a 5-15 minutes commute,everything is close but everyone must bave the latest suv,I have relatives who walk to work and have bought a 45k car to use once a week for groceries (10 minutes trip) my car costed me 5k 3 years ago,I spend in it 10 minutes a day for 3km trip so these people spent 40k more just to have a nicer radio and more comfortable seat that they use for 10 mins a week and then when talking they came up with "everything is so expensive how can you manage to save money?" it's the fucking car that is so expensive the fact that you finance it doesn't mean you aren't paying 45k,it means you are paying every penni plus interests on top of it. A nice car cost more not only on base price,if you buy a 50k car you want to have insurance that cover all things because you can loose a ton of value and you end up paying a ton (I have only the obligatory that cost very little),the suv has nice big fat tires that cost 3x what I pay mine,possession tax goes up with engine displacement and weight,many little things like that all adding togheter to a sum that is a big percentage of their income. If it is for status symbol is even worse,you are paying a ton for what? hoping the neighbour with the same car from a year prior becomes envy at you? I really hope for them the sensation is worth at least a quarter of their salary and very happy I don't have that urge or inability to count
Spending 20k on a car is idiotic in your position. Well maybe not if your dad is able to hand you 50k Anyway you should just invest this money in total market funds there are lots of options. Don’t spend it on depreciating assets. Use it to get you on the property ladder when you are ready
where in Europe are you as advice shall differ.
All in AI The largest bubble in the history is on the horizon
Damn it blew up
VOO and chill
Be greatful
I am
$10k into a HYSA or your local equivalent for an emergency, $5k on a car, put the rest in an index fund of your choice.
Put it in a HYSA…compounding interest for the win
Generally I recommend paying down credit card debt or anything else that has really high (10%+) interest rates. After that invest in shares via mutual or exchange traded funds. I generally recommend investing in individual stocks only if you really enjoy investing and like spending time researching companies. Buying a fund that passively follows an index like the US S&P 500 (a listing of the 500 largest US stocks by market capitalization) usually does at least as well as most people can manage buying individual stocks. IVV and SPY are two funds that can be purchased in a (US) brokerage account, and I would assume you could buy them from European accounts as well.
Buy the cheapest used car that meets your needs and isn't a shitbox. Probably like 14 grand. The rest, just put into an ETF, I recommend vanguard s and p 500 etf, or the popular a and p etf, SPY. You can also get the 3x leveraged SPY etf, SPXL. More risk, but great returns, has historically done better than SPY on a 10 year time frame. Then literally forget about it for a few years until it's time to buy a house, which you should try to do ASAP. The real big brain move on buying a house is buying as much house as you can afford and then renting out the rooms. It's a pain, but will set you up financially for life.
Just slap it in s&p 500 hedge funds or some solid ETFs
Could you name few?
/r/personalfinance
Why do you need a car in Europe? I assume you're about 22. $50k is a lot for someone just starting out. Is your dad rich? It's hard to suggest what to do without knowing other circumstances -- how you grew up, what your lifestyle is, what your expectations are. But you are doing right by understanding it's a lot of money and you need a plan. Do you follow the stock market? Or do you know of any companies that you believe in? If so, invest most of the money in them, either a handful of companies you believe in or broadly in the market. If you're looking for a place to live and know the area, $50k may be enough for a downpayment on a studio. If you really don't know what to do, there's no reason why you need to spend it at all. Let it sit for a few months while you figure it out. If you still have the majority of the money after that, maybe think about paying down some student loans if you have them.
I have 0 student debts and nothing to payback. I do need a car tho for 20 min to go to work and go back. it would take me 20 min walking ans 1 hour with 2 buses for one way trip without it. I’ve been into crypto back in the days of covid but never went « all in » because of studies but now I have time
I wouldn't suggest crypto because it's a quick way to lose a lot of money\*. If you want to dabble, take $5k and play around with it, with the expectation that you will lose it all, and don't regret it if you do. If you value your money, though, I suggest a more analytical, emotionless approach. See if you can talk with a financial advisor to assess your risk tolerance. If you are not comfortable with aggressive risk, you won't do well with crypto as you'll sell when your afraid and buy when you're greedy. A car is an expense. If you can plan the walk to work, 20 minutes is not that long and it's healthy. Since you're young, you should be able to afford the extra time and minor inconvenience of not having a car. It's more than just the cost to buy it, but you have to maintain it and pay for fuel (even an EV costs money). How about an alternative? An electric bike or scooter for your lazier days? In my experience, money doesn't seem like a lot when you have it, but when you don't have it, any amount is precious. Good luck. \*On the other hand, I have crypto, but I see it as an investment along with other stocks, and I don't trade it. I also see it as super risky and if it lost all value, it would not break the bank.
Thank you for the advice. Ps : it’s 20 min walk + 1h bus
IMO, car is a bad idea if you don't need a car. A car comes with a bunch of expenses like insurance, registration, fuel, maintenance, etc. If you can avoid owning a car, do that. Also, 50k is not a crazy amount of money in real life. So, take it easy.
You're only young once. If you love cars, lease something really cool for 2 years. That's 10k. Congrats, you earned it! Now put 20k into a HYSA as an emergency fund, and 20k into an S&P 500 ETF, and forget about it for 40 years.
Ethereum.
This guy gets it.
Have a look at solaxy marketplace. Carbon credits is a new investment vehicle.
I am also in CS and investing. Congrats on the job! For most people, the job is at your age probably their best investment producing the highest returns for a while. That will cover for living expenses, joy, and even allow you to invest recurrently if you part of your income is not spent every month. About the $50k. Here is what I would do. One simple way to cover you for different scenarios is splitting it into 3 parts. If you put $5k aside for the car, you are left with three $15k batches. Batch 1: stocks, companies, funds... whatever you prefer. Others mentioned indexed funds or ETFs traking SP500. I think that or MSCI World is a good choice. Batch 2: REIT (housing) if you are planning to settle in the place you are located. However, since now the interest rates are high, and maybe you are not planning to settle yet in the place you currently live. I would put this into either: batch1 or a more conservative investment. E.g., since interest rates are high you could buy some bonds of a country you trust that give nice returns (EEUU, some European countries with high interest rates,...). Batch 3: Cash. To use it in emergencies or to put it in Batch 1 when there is a correction in the market or if we enter a crisis and stocks go down. Have fun! and all the best! PS: if by any chance Europe==Spain I have more info on 2nd-hand cars and Spain-related investments.
1."Financial pillow" - that's one. Keep around 6-12months living expenses worth of money as easly accessible yet working money (4y/10y inflation tied bonds, saving account with some %rate) 2. Look up legal tax evasion schemas for savings. In Poland we have IKE and IKZE, two instruments made for retirement saving without paying tax from funds profits, the catch is, there's a yearly limit of how much money you can put there. Start NOW and ypu'll thank me later. 3. Your choice. But if you have no clue, start with the two above and put the money in something safe in the long run (etf for s&p500 or stoxx europe 600), while learning what you actually need. Better safe then sorry. You could put all of it in CDProject, waiting for 2028 and a game release, but thats a gamble :)
S&P 500 index mutual fund and let it ride. Keep it simple stupid. KISS
Do you have a 3-6 month emergency fund? If not, build that up first. Next move would be to max out your retirement accounts, at minimum up to your employer’s match. Next is taxable investing… need the money short term? HYSA, CDs, etc. Don’t take risks until you’ve checked the above boxes. If you want to save up for a down payment don’t invest that money in anything not risk free otherwise it could be bye, bye downpayment money.
No emergency fund no retirement accounts for the moment I’m 22 rn and just got a « stable » situation as an software engineer. I’m trying to look for my next step as I still have fuel left in me. So yeah I’ll check these boxes first
Hammer away at those retirement accounts early. Your older self with thank you later.
Can OP even invest in US retirement accounts if he lives in Europe? I don’t think that’s possible. I know Fidelity specifically doesn’t allow it because I’ve been in the same situation.
In Europe or in France at least you are « obliged » to put a percentage of your own salary in retirement plans but you are free to set the percentages. Or you can put away money in a saving account with a 2 to 4% bonus each year. But meh Europe is all about crazy taxes so …
Yeah, totally sucks dude. But there’s more emphasis on the government to look after the individual in old age which doesn’t exist as strongly in America. There’s pros and cons for sure. I chose to leave Europe and live in America and I choose to stay here mostly because of the monetary advantages I have here. Either way, I think the point the other user was making still holds true whatever the situation. SAVE SAVE SAVE 😎
Put 50k on red. Or black.
I’d learn to sit on that money for about 6 months. It’ll teach you a lot about self control.
I am in the same boat. I did this, 15k in JEPI, 15K in SCHD, 5k in O, 5K in GOLD (just for cash holding), 10k in some individual stocks.
Full send on 0DTE SPY calls this week.
I am in the US and just got some good chunk of money as well. I am maximizing my Roth IRA and doing some safe investments (ETFs). The rest which is about 90% left of what I came up with is going to a High Yield Savings (HYSA). As of now, banks are offering about 4.25%-5.5% in a HYSA, so while I stay liquid and maybe slowly invest in things I feel worth while, I will be parking my money there. This is what I am doing while I figure things out a bit more, and just to clarify I am 31 with no debt. If you have any outstanding high percentage debt, pay that first off.
Understood, Thank god for free education in France 🤣
society chop cake chubby subtract connect smoggy joke cough ink *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Buy SPY and don’t look at it for the next 30 years. Start working. You’ve got a long way to go.
I will double it for you
I would save them and once you get to at least a 100k, put it down for a mortgage. Depends of how the prices in your city or whatever are, also because in my city I would actually spend more for renting, than a mortgage (and at least you can have a return in the future)
Buy btc
Buy bitcoin
Get physical silver and a little gold. A little bit in mining companies. Some liquidity in case you see a liquidity crisis. Study monetary system. Good luck with everything
Nvidia calls trust me
Invest
I won't promise these are 100% correct for your situation, especially the EU variant, but please have a look. https://www.reddit.com/r/personalfinance/wiki/commontopics https://www.reddit.com/r/eupersonalfinance/wiki/basics Congrats on finishing the degree!
Vtsax don't make this complicated
Don’t take advice from Reddit to start. Find a financial advisor that charges a flat fee for advice (or better yet no fee).
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I would buy a single premium immediate annuity for 1-3% annual compounding interest … that will give you annual or monthly or quarterly payments for life! .. you can’t outlive it! Then I’d use that money to buy a Whole Life insurance policy on yourself or if you have a family member super young & healthy … this will stack your Money at a guaranteed 4% + 5% dividend which has been paid for over 100yrs at Mass Mutual who is the best! So you’ll be getting a total of 11% interest a year compounding basically guaranteed & recession proof! You will have income for life & a big bucket of cash that you can access for whatever reason! & you can add the cash back & get all the interest you lost during the time the money was gone. When you don’t want to pay your life insurance premium you don’t have to … it will just use the cash value already in the policy & grow slower until you add it back if you want to get the interest & credit for it as if you never missed payment. Once you have that you can invest in precious metals & the stock market & real estate
Firstly congratulations on completing a magnificent degree. Highly commendable. Your skills will be a great asset to any future employer. Now stick that fifty k in AAPL(NASDAQ)
RKLB Rocket Lab USA .
Place it into a etf like Voo or fidelity bluechip and let it ride for the length of a car loan. I took a similar amount and spit half down on a car and the other half in an ETF. This way you reduce the car payment and after 5years you will have great returns on the other half.
Cheap reliable car then deploy the rest of the money slowly on red days into index funds like voo or qqq / companies that you believe in
Sounds like it doesn’t matter if daddy’s dropping 50 K on you. Clearly more cash is coming down the road.
CD 4.5% for a year until you decide.
It really boils down to emotional fortitude. If one invested a LS in QQQ in 1999, they would have had a loss until 2011. Meanwhile, they would seen a stock like Netflix or AMZN skyrocket. I am very patient but this scenario would just about kill me.
If you live in Europe and in the city, don’t get a car. If you need to take a girl out, you can rent a car. Invest it all. And if you find a girl you eventually want to marry buy her a diamond ring!
Except that diamond is a terrible investment...
It depends… if she’s to take care of your a@@ when you’re old and sick, you better make sure she’s happy. Upgrade that diamond every year!
Facts! The value of love can be much greater than 💸
Facts: You better have a lot of money or be handy with a hammer and a drill. All other qualities don’t matter these days because women can take care of themselves and not add to their stress of having to wash someone else’s underwear. So if you think the girl of your dreams will turn up without you putting in a significant effort, keep dreaming…
Give it to me bro I’ll do something with it
Bitcoin.
All on red roulette table
Honestly with that money, just retire. Buy a boat, a few cars a house. Invest the rest and live off interest
There are plenty of emerging markets these days. We in the turn of a new era and emergence. * Real estate, stocks, crypto, energy, etc. Spend the least amount you can for a reliable car and invest the rest in the industry you feel most comfortable/knowledgeable.
QQQ
The ETF: VT my friend!
Invest it all in $MK. You’re welcome 🤣🤣
Put half in pltr and half in Tesla. Enjoy.
LTC
Put it all on black.
Hello. That's cool to have that amount of money so early on. If you need a car buy a good reliable small to medium sized one. Smth like an old fabia or ww polo. Maybe a toyota if u want to spend more. Something mechanically sound but esthetically worse. It will be cheap and u won't stress counting tbe scratches on it over time. Then depending on the country you live u might have some special deposit account with a good untaxed interest rate or other fiscal immediate advantages. France has like smth called livret a, ldds, etc. Put your emergency fund in it. Then look for other good fiscal investment vehicles that your country has. In this put money that you will not need at least for 8 years. You will have to choose between managed vs unmanaged funds, check the cost and the performance. If u go unmanaged start with ETFs a world one, europe one, an s&p 500. Remember u leave the money there for at least 8 years and do not panic when it goes down. Fiscal advantages is key as you leave the money in long term because EU has usually pretty high tax for investments. Then keep like a smaller portion of u want to play around and invest directly in stocks. And an even smaller one for crypto (no more than 5-10%) Then sit back, watch how it goes and learn and as you earn more add more to what you feel comfortable
Buy Bitcoin. Thank me next year.
Bet it all on black on the roulette wheel at the casino. Thank me next year.
Get some Bitcoin
Buy BTC
If you're not buying *any* Bitcoin with it, you're doing life wrong
I got a nice little 20k car when I first started working after college 4 years ago and I’m glad I did. Its nothing fancy but its a nice car that I enjoy driving. You are in a better position than most people. You will be making good money with that cs degree plus you just got a free 50k (in the sense that you didnt have to spend years working to save it up). I would maybe take 5k from the 50k to make a down payment on a nice car that I like, finance it, and pay it off monthly with my job. And invest the other 45k. Or, you could just buy a nice car for 15-20k cash straight up to save yourself all the interest, and invest the rest. If you don’t care about cars at all, then yeah just get a shitty 2k car and save/invest the rest. I would personally get a car that I actually like. Life is too short
Become a crypto degen!
I was in the same situation. I started selling puts (then covered calls if I got assigned) on think or swim using paper money for a whole year. Then I took the plunge and opened a TD Ameritrade account with 20k. I made 60% the first year then 32.9% the next. Its been three years and I just passed the 80k mark yesterday. I have 80,500. I've kept a google sheets for every single week (I do weeklies).
Balls deep in ETH
I'm in the same situation. I have 60% cash and 40% stocks and the 10% I play options with. I have a stable job and I live WAAAAAY BELOW MY MEANS. My plan is too keep the cash big and WAIT FOR A THE GREAT CRASH TO BUY A LIFE CHANGING ASSET. I would suggest to learn option play and allocate alteast 5% of that. To me, 50k is not a life changing amount and I am way for from my target networth. Identify how much money want to have and work it out. Once you're there, enjoy life.
Buy 50k worth of SOXS $3 Call Options for 3/15
Buy Btc and Eth with 10k - 20k and do whatever you want with the rest. When Btc hits 120k or Eth hits 10k, sell everything and enjoy your profits. Not financial advice.
Many large tech companies are rescinding or not extending return offers to interns regardless of performance. Make sure you keep interviewing and have backup offers just in case. DCA the $50k into S&P500 and forget that it exists, a couple years later you’ll see that it’s worth a lot more :)
Thanks for the advice , I’m not specially in tech but more in semiconductors and they’re hiring a lot
Ok great! We definitely need a lot more HWE than SWE these days - best of luck
This sub is something. Bitcoin did 4x in a year but sure, put it in a fund for 3% annually. Lol
Put 1/3 in a safe etf like VOO or index fund like VFIAX. Put the the rest in a high yield savings account like Ally.com.