Investing inheritance

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Investing inheritance

Post by m1dnight » Thu Feb 13, 2020 3:57 am

Hi all,

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.
In case it matters, I'm 31, and I live in Belgium.

Thanks for your time,

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Re: Investing inheritance

Post by Tamarind » Thu Feb 13, 2020 5:57 am

Consider the collected advice here:

My suggestion would be to use the money to take advantage of any opportunities you have to save for retirement that you're otherwise missing out on - ie contribute to work or government accounts relevant for your country.

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Re: Investing inheritance

Post by andrew99999 » Thu Feb 13, 2020 6:48 am

Welcome to the forum.
m1dnight wrote:
Thu Feb 13, 2020 3:57 am
[*] 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.
Here's a multiple choice question for you.

A banks will do what is best for
A: You
B: The bank

Setting up an investment plan that is globally diversified, low cost, matches your own personal risk tolerance, and that is best for you and not best for the bank takes some reading but it's not that hard. With the information on the wiki and the people here to help if you have any questions, you absolutely can do it.

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Re: Investing inheritance

Post by DJN » Thu Feb 13, 2020 6:51 am

have a read of the main sections of Wiki for non-US investors here: ... _domiciles
When you have read the main and generic sections why not read the bit about Belgium too.
Yah shure

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Re: Investing inheritance

Post by BeBH65 » Thu Feb 13, 2020 12:24 pm

Tamarind wrote:
Thu Feb 13, 2020 5:57 am
Consider the collected advice here:
+1, as mentioned in the wiki page
Do nothing rash. Set aside one year's living expenses and place the rest of the windfall into low risk investments (FDIC [Government] insured accounts, money market funds, treasury bills) for one year. As it may take as long as five years for the windfall recipient to adjust to a new life, this pause provides a chance for emotions to cool, helps avoid impulsive behavior

Be sure to split the money over different banks to ensure each remains below the 100k government guarantee.
Make sure you understand if there are still taxes due, put these aside.

You need to decide what you want to use this money for.
- stop earlier with your professional career.
- add to your retirement savings.
- use this to reorient your career / invest in yourself - take a few years of and go back to school.

One cannot see this windfall in isolation. Consider updating your Opening post according to the format mentioned in this wiki page. So that the readers understand your full situation.

Use this year to build a plan for the money, and document it ( ref: Investment Policy Statement)

Background references: ... _investors
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence). | Have a look at

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Re: Investing inheritance

Post by xxd091 » Thu Feb 13, 2020 1:00 pm

If you do not need the money immediately-take your time
Leave it in the Bank and start reading learning and asking questions
Then start slowly investing it learning as you go
Might take a few years to get fully invested but that’s OK
If you want someone else to manage your money that’s good too but
1) They will take fees-will be very expensive
2) You will still have to learn about money so that you can tell if the Bank is doing a good job and not making a mess of it
Bankers have proved that they are very good with financial advice unfortunately
No easy way out of this but a nice problem to have

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