I inherited a large amount of money from my grandmother (+- 5 years of wages). I am looking for advice on what to do with it. I'm a computer scientist by eduction and trade, and I only recently started getting interested in the stock market. I have about 7000 EUR of my own savings invested in stocks and ETF's which I do for "fun and profit" and learning.
I try to read as much as I can and apply the knowledge to my own portfolio. I also followed a short evening course as a crash course introduction to the stock market. Here I learned about what financial instruments exist and what the basic properties are. But at the time of writing I'm not confident enough to build my own portfolio with such a large capital.
I realize I'm not experienced enough to invest all this money in stocks so I was thinking about combinations of investments.
The way I see it is I have the following options.
- Invest all of it in a house. I can just so afford a house with the cash and then rent it. But a loan is pretty cheap and fiscally speaking interesting. So I could loan half of a house on shorter term (e..g, 10 years) , and buy the other half myself. But a rough estimate of this is that the money will yield +- 3%?
- Invest a part (40%) of the money in ETF's like the CSPX or IWDA, and then some stocks of companies I can really understand (i.e., tech). On the other hand, I do feel that I don't have the skillset needed to value a stock for what its worth except reading a financial newspaper.
The other part of the money can then be left on my bank account in case I need it.
- Pay of my current mortgage partially. This option seems the least desirable for me because my mortgage is at 1% right now. So that would mean I made 1% on the money.
- Go to a bank and ask them to invest it for me. I like this option the best security-wise because these are the experts and they know what they're doing. On the other hand, I don't have any fun, and I don't learn anything.
Thanks for your time,