|
Do you need this money in the near future, or is this now serving as long term investment through to retirement? General rules of thumb with windfalls: 1. Pay off debt if you have a lot or have relatively high interest debt 2. Build a liquid savings cushion that can cover for you in case of the loss of employment, family emergencies, etc. A good rule of thumb is to keep at least a couple month's expenses on hand accessible in a savings account. 3. Apply the money to your goals What are your goals? Do you want to buy a house at some point? Do you want to retire early? Do you want to work less and live off money (probably not possible since it's not a lot of money) I will now respond to your concepts in order: 1. Savings bond - not the worst idea but the return is terrible 2. Stocks - index funds for major European indices exist. An index tracks the performance of a group of stocks - the DAX is large German companies. An index fund means you own a little bit of every company in the DAX - if the DAX does well, collectively, you do well. This is better than trying to pick individual stocks because it requires less active management. Best for a "buy and hold" strategy where you don't need the money for at least 5 years. 3. Property - even if this weren't a horrible idea (it is), you don't know anything about it, making it a horrible idea 4. Other commodities - even if this weren't a horrible idea (it is), you don't know anything about it, making it a horrible idea 5. precious metals - easily the worst idea you've put to paper Unless you have some specific goals that the money would help you attain, I would park the money in an index fund of some kind if you think you might want use of it before you retire. I'm not in Germany, so I don't know German tax laws regarding tax-advantaged retirement accounts. From what I can tell, German pension/retirement programs are quite complex and you should probably speak to a specialist if you plan to invest the money for retirement.
|
#
¿
Aug 18, 2016 13:39
|
|
|
|
| # ¿ May 10, 2024 03:09 |
|