How to spend 100k

[Thetruthseeker]

So my family left me some money when they downsized their house just recently 

I’ve got 100k pounds and not sure what to do with it 

I’ve experimented with stocks and shares a bit before, but only 10k’ worth. I’m 10% up on them in 6 months 

Just wondering what some suggestions would be... 

thanks ?? 

[mandyjw]

I would start an IRA with some of it if you don't have one, and bank the rest in a money market account until you get hit with some real inspiration. Just sit with the feeling of having it and imagine what you COULD buy with it for a while. That in itself would be really fun. 

[StarStruck]

You could look into day trading.

[NatureB]

Idk what it might be for you, but if I found myself in that fortunate situation I would travel the world at least one full year. Maybe read a travel blog to get some inspiration if that sounds enticing for you.

[Thetruthseeker]

@datamonster pretty amazing! 
Thanks 

At the moment my stocks are things like Tesla, Spotify, shopify, Amazon etc 

but ETF’s are a safer bet aren’t they. 
But Tesla can go up 100% ... it’s always devil tempting 

 

great help though. Thank you 

[Jacob Morres]

id invest most of it myself and put some into a business 

[Lyubov]

lmao do not put 5000 pounds into crypto or gold. you also don't need to put 25% of it an emergency fund if you have a decent income source already. also avoid individual stocks and overly speculative stuff and honestly anything outside the US lol. put 60% of it into safe US etfs, index and mutual funds with a steady track record that follow large sectors and massive markets like the S&P 500 but you can find ones that are cheaper per share and mix it up. Put 30% into US treasury bonds. The last 10% keep it cash as an emergency fund. 

Edited March 22, 2021 by Lyubov

[flowboy]

So what I would do is very different from what the average job-401k person would do, but here it goes:

I wouldn't waste much mental energy on investing.

I'd invest it in myself instead.

I'd think of the coolest business that I've always wanted to start, and needed some runway for.

I'd just be delighted with the opportunity to work full-time on a project. Now having the money to feed myself and invest in that business for 2-3 years until it started to make money.

You see, hundreds of thousands invested still don't get you financial independence. The returns are not enough to live comfortably. However if you have made some millions, that's a different story.

So instead of spreading it all out on the stock market, hoping to earn a couple thousand a year from that, and then basically being in the same position as before, I'd just eat it up while building something that can make me ten times as much. Then, after I invest those millions, can I call myself financially independent.

[Consept]

26 minutes ago, flowboy said:

So what I would do is very different from what the average job-401k person would do, but here it goes:

I wouldn't waste much mental energy on investing.

I'd invest it in myself instead.

I'd think of the coolest business that I've always wanted to start, and needed some runway for.

I'd just be delighted with the opportunity to work full-time on a project. Now having the money to feed myself and invest in that business for 2-3 years until it started to make money.

You see, hundreds of thousands invested still don't get you financial independence. The returns are not enough to live comfortably. However if you have made some millions, that's a different story.

So instead of spreading it all out on the stock market, hoping to earn a couple thousand a year from that, and then basically being in the same position as before, I'd just eat it up while building something that can make me ten times as much. Then, after I invest those millions, can I call myself financially independent.

Why not do both? Or even better why not invest most and get funding for your business idea? If the Idea is really good and will make money, then most likely you'll be able to get funding for it, all you have to do is make sure the profit you're getting from the  investments is more than the interest your paying for the loans and then youre golden. Plus you can payback the start up costs in installments instead of big chunks. 

[Thought Art]

Maybe just hold on to it, or most of the principle and plan as your grow and discover new things to do with it.

[LfcCharlie4]

Invest in Ziliqa, Theta, TFuel, Veracity & Cardano if you wanna turn that 100k into financial freedom lmao (this is a joke not financial advice before anyone kicks off, always do your own research and never listen to random blokes on the internet on how to spend your own money)

But seriously, Sure you could do the whole 'balanced portfolio' route, but I'm guessing your pretty young? Benefit of being in your 20s is you can take risks & the downsides are nothing compared to when you have dependents and a mortgage etc

I'm just saying since the start of this year some of my investments have more than tripled, I find that much more fun than getting 5-10% returns on an index fund, sure as you get older and wealthier (I mean 7-8, even 9 figures here) diversity becomes more important. 

But, if you learn the markets properly & take the time to study you can turn 100k into 500k- million in Crypto Bull Run pretty easily, then your essentially set for life. DON'T go in blind though, properly research and understand Crypto cycles, Bitcoin halving, bull / bear markets, exit strategies etc 

But I have a high tolerance for Risk, I'm only 21 and after this bull run I'll then diversify, it just makes zero sense to me right now to invest in something like Index funds during a Crypto bull run when you could literally shut your eyes pick any crypto in the top 100 and probably double your money, its a once in a generation opportunity

 

On 3/22/2021 at 7:21 PM, datamonster said:

@Thetruthseeker This is a very personal decision, but here's roughly what I would do assuming you have a long time horizon (high risk):

• Put 15-25% into a savings account as an emergency fund
• 35-40% in a globally diversified index fund such as an MSCI world ETF
• 15-25% in an emerging markets ETF
• 10-15% in individual growth stocks or sector ETFs such as a NASDAQ100 or Clean energy one
• 5% in Gold
• 5% in Bitcoin / crypto currencies

If you prefer a more moderate risk portfolio you could swap the growth stocks with a STOXX Europe 600 ETF and Crypto for a REIT or government bonds.

If you are the home-owner type you could even think about buying an apartment. Personally, I would put all my eggs in one basket though.

Disclaimer: This is not financial advice lol 

 

Meh, maybe do this long term, but even 10% on 100k is literally 10k which is hardly anything, once you're playing with Millions then 10% becomes significant, but I'm so biased towards crypto lol

Diversity long term, yes, but why would you put ANY money even intio BTC & Ethereum right now when you literally just need to do some more research and find up and coming Small Caps where the real profits are, the 'risk' argument doesn't make sense either right now imo 

[Hansu]

@Thetruthseeker

Luxury girl is 1k per night and a line of cocaine is 100 pounds, you could do that every night for 3 months, or 1.5 times a year for 60 years if you plan your finances wisely

Jk. I would choose the simplest option and put 85% of the money in a fund that has average revenue of 5-8% per year and low expenses, then 5% to a savings account for unexpected expenses and if interested, 10% to whatever high risk investment(s) I'd want to play with.

In 5 years you would have around 117k with relative ease and the 10k you put into crypto investments would have transmutated into a Porche that stands in some Chinese investors garage.

[meow_meow]

If I had 100k I'd wait for a correction (drop in price) and just but 1 Bitcoin for ~40k USD (hopefully) thats assuming that you already have your own place to live in, if not - then an apartment/house first.
 

1 hour ago, Hansu said:

a line of cocaine is 100 pounds

No, bro, a gram of coke is 100 pounds and that's considered expensive, its way cheaper in some parts of the world including Netherlands. (~ 50 EUR)

Personally after having my own place to live and some invested in cryptos I'd probably quit my 9-5 and go on some insane ayahuasca rituals around the world, travel to India, Thauland and shitton of other places, and focus on spending that money on quality things like private asian kung-fu trainers, boat trips in amazon and shitton of other things, they also of course would include some coke and hookers lol.

[GreenLight]

Leo could post a link to his tip jar here

 

 

[LfcCharlie4]

@Zeitgeist Oh 100%, follow 360Trader on Twitter to learn how the cycles work & when to sell into the parabolic move. (Alts go 1-2 months after BTC usually) 

[AdamDiC]

Buy a house in Costa Rica, no mortgage, just chill by the beach and meditate lmao

Seriously.

[7thLetter]

16 hours ago, LfcCharlie4 said:

Invest in Ziliqa, Theta, TFuel, Veracity & Cardano if you wanna turn that 100k into financial freedom lmao (this is a joke not financial advice before anyone kicks off, always do your own research and never listen to random blokes on the internet on how to spend your own money)

You buy Veracity too?? Ayy VRA

[LfcCharlie4]

@7thLetter Yes! 
 

the use case is so needed- fixing all the fake views, fake followers etc and being used in E sports tournaments and for better or worse video games are the biggest “sport” in the world these days!

[meow_meow]

8 hours ago, AdamDiC said:

Buy a house in Costa Rica, no mortgage, just chill by the beach and meditate lmao

Seriously.

Yeah, If I ever get to 100k in my lifetime this would be the thing I'd go for, but don't forget that money tends to run out/inflation so you need to find a way to make money with your money so that you don't have to return to that 9-5.

But yea, focusing on enjoying life is what I'd aim for as a priority.

[Nahm]

Put it in the bank. Make a dreamboard and take Leo’s life purpose course, realize your dream. The synchronicity of having received the money ‘randomly’ will soon make great inexplicable sense.