What would you do with 100k?

[jhonny9546]

Hi guys!
I'd like to introduce more about the current status, but sorry in advance for my bad language, I am italian, and talk little English.

Given this, I have "inherithed" 100k; I am 28, single, m, and I live with my parents. I am currently employed with a stable 9 to 2 job, which pays 150% of my Frugal COL. This job gives me room to have a good amount of free time, which I do invest in hobbyes + learning new stuff.
Like everyone on this planet, I have some needs/urgence to satisfy right now:
1) I can't no more live at my parents house, so I have to go live elsewhere. I am searching for a place/way to live.


Here comes the question: I need a place to stay, so I need to buy a house, but, Is there a better way to use those 100k? How should one use this amount of money, as a tool to build some roots for a bigger thing? for example:
1) I could buy a 150k house, use 50k, and get 100k, 10y mortgage. (mainstream)
2) I could buy land, engage architects, bank, developers, and ask to build a 5 apartments building, using 100k as a downpayment for a 500k, 20y mortgage. I would like inside one of those apartments or I could buy a camper for 10k. Then, after 20y, I could have a cash flow from the apartments income.. but would "renting" still be there in 20y? (too risky)?
3) I could relocate where those 100k could give the higest ROI in stocks, or invested in the economic system of that country. But I still need some place to live. (USA?)
4) I could buy a camper for 10k, and buy 2 different land, in 2 different places, within Italy, for 20k each, and just enjoy life. (but who's earning money to pay for COL here?)
5) I could build an hotel, b&b, with many rooms, and make it my first job. (my city has many tourists).
6) you say

[tre3sori]

Invest it along these lines:
80% Vanguard FTSE All-World ETF or iShares MSCI ACWI ETF or similar.
20% Vanguard Global Aggregate Bond ETF or iShares Global Aggregate Bond ETF hedged to your currency.
Done.

[tubaleiter]

In addition to tre3sori's good generic advice, a couple questions:

1. What's your goal for the money? If you want to use it for retirement in 40 years, it's a very different answer than if you want to buy a house with it in 2 years.

2. Beyond what you invest in (whether it's an 80/20 equity/bond split like tre3sori mentioned, or it's a different balance) ,are there any tax-advantaged accounts in your country that would fit your time horizon? A pension you can't access until your 50s or 60s might be good for taxes, but not much help if you want the money in 2 years! But if it's a long time horizon, tax-advantaged accounts can save a huge amount, depending on the particulars.

[Parkinglotracer]

Set up a long term retirement plan. Read the BH wiki. Come up with a plan that you can stay the course on and save for when you are 60 and look to retire. What else would a BH do?

[Jack FFR1846]

Cadillac CT5 V Blackwing

[muffins14]

Hi guys!
What would you do with 100k? (€)
Hipotetically, you are 28, single, no house.

Invest in stocks

I wouldn’t buy a house or apartment now if there was a chance I’d meet a partner soon and preferably want to move together later

[g2morrow]

Cadillac CT5 V Blackwing

C8 Corvette convertible

[TomatoTomahto]

Cadillac CT5 V Blackwing

Jack, scratch that itch, you’re becoming obsessed and can afford it.

OP, listen to the others.

[Colorado Guy]

Hi guys!
What would you do with 100k? (€)
Hipotetically, you are 28, single, no house.

Any debts? Pay them off now.
Provide something dreamed of by your parents, but they never obtained (vacation or special item)
Going to grad school? Pay tuition.
Need a reliable vehicle? Choose wisely.

At 28, I would save for a partial home down payment.

Do not advertise that you received a windfall. That will be the beginnings of troubles.

[remomnyc]

I'd blow $5k on something I really wanted (at 28, for me, that would have been travel), set aside enough to cover one-year of expenses, and invest the rest in 2 stock funds, US and international.

[6bquick]

Hi guys!
What would you do with 100k? (€)
Hipotetically, you are 28, single, no house.

Do not advertise that you received a windfall. That will be the beginnings of troubles.

x1000

This is incredibly wise advice. Whatever you do with it, I'd recommend it be subtle as to keep it secret.

After that, either debt payoff or saving some/all of it for the future. a 100k slug to start a portfolio will yield some pretty impressive results pretty quickly.

[hudson]

Hi guys!
What would you do with 100k? (€)
Hypothetically, you are 28, single, no house.

Today, I'd put it in intermediate fixed income and do my best to never touch it.
More specifically, I'd go with a 5 year/5% brokered CD unless there was a better deal on a 5 year bank or credit union CD. (I took a quick look at Vanguard's available rates just now.) I would want a call protected CD.

[KneeReplacementTutor]

Depends entirely on what my other assets are, what my goals are, etc.

[CoAndy]

Cadillac CT5 V Blackwing

C8 Corvette convertible

C8 Corvette Z06 (though I would still have to take out a bit of a loan).

[Shackleton]

Purchase and upgrade 5 dirt bikes of various types and have money left over for an enclosed trailer…

[alexbogle]

Down payment on a house

[Valuethinker]

Hi guys!
What would you do with 100k? (€)
Hypothetically, you are 28, single, no house.

Today, I'd put it in intermediate fixed income and do my best to never touch it.
More specifically, I'd go with a 5 year/5% brokered CD unless there was a better deal on a 5 year bank or credit union CD. (I took a quick look at Vanguard's available rates just now.) I would want a call protected CD.

I've never heard the term "CD" in Europe.

Certainly not in the UK. Notice Accounts are sort of like term deposits.

[RJC]

Porsche 718 Cayman GTS 4.0

[ebeb]

First make sure you have 6month to 1 year of emergency fund safe to live on if you lose your job. While you are working and quite young still, you can spend some money to do a part-time degree like MBA from a good university which will get you a far better job with more income so that $100k will be small change for you when you start making great money like $300k+ per year

[jg12345]

Ciao
Uno ha gia' scritto una cosa simile. I soldi servono a vivere la vita che vuoi/che ti rende felice. Qual'e' il tuo obiettivo per quest soldi?

Se vivere la vita che fai adesso ti piace, e l'unica cosa che cambieresti e': non voglio piu' vivere coi miei.

Allora
1) usa una parte per comprare casa, o compra una casa intera coi soldi
2) continua a fare quello che fai

Se invece la vita che fai adesso non ti piace, cosa ti serve per cambiarla? studiare? non so cosa vuoi fare TU nella vita.

Dal tuo post sembra che l'unica cosa che non ti piace della tua situazione e' che vivi coi tuoi, quindi con i 100k io risolverei quello.

Buona fortuna

----Hello,

One has already written something similar to this. Money is used to live the life you want or that makes you happy. What is your objective?

If you enjoy the life you're living right now and the only thing you would change is not wanting to live with your parents anymore, then:

Use a portion of the money to buy a house, or buy a whole house with the money.
Continue doing what you're doing.

However, if you're not happy with the life you're living now, what do you need to change it? Do you need to study? I don't know what you want to do in life.

Based on your post, it seems like the only thing you don't like about your situation is living with your parents, so with the 100k, I would solve that.

Good luck!

[jhonny9546]

Hi thanks all.
Beside the fact that the first problem is toxic parents/brothers, so I'd like to go away from them, even if I stay in the same town, it's fine..
Then I'd like to address the very second problem, which is something very common in my country: us, from 20s to early 30s, "don't have a plan", because of bad society and government politics.
I really like being is a field like "research", but I do not have a degree, but a office job instead.

[slavicfrog]

From FIRE/Bogleheads perspective, yeah - get ETFs, invest and wait until it grows.

From life perspective - buy a house or an apartment, move out of you parents, be independent, enjoy the beauty of life, start building something of you own - a career or a business. Independence and freedom with the stability of having your own house with a super low morgage (50k is nothing) will benefit you in long term.

Ps. If the house would be 1mln, my response would be entirely different

[hudson]

Hi guys!
What would you do with 100k? (€)
Hypothetically, you are 28, single, no house.

Today, I'd put it in intermediate fixed income and do my best to never touch it.
More specifically, I'd go with a 5 year/5% brokered CD unless there was a better deal on a 5 year bank or credit union CD. (I took a quick look at Vanguard's available rates just now.) I would want a call protected CD.

I've never heard the term "CD" in Europe.

Certainly not in the UK. Notice Accounts are sort of like term deposits.

So somehow, you figured out that jhonny9546 was not from the US. I missed it.

[Taylor Larimore]

jhonny9546:

If you decide to invest the money, consider The Three-Fund Portfolio.

Best wishes.
Taylor

Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan." -- "There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite."

[Hyperborea]

So somehow, you figured out that jhonny9546 was not from the US. I missed it.

Biggest giveaway is that the post is in the "Non-US Investing" forum.

[hudson]

So somehow, you figured out that jhonny9546 was not from the US. I missed it.

Biggest giveaway is that the post is in the "Non-US Investing" forum.

Thanks! I see it now at the top of the page.

[Hyperborea]

I really like being is a field like "research", but I do not have a degree, but a office job instead.

If you really want to do this it might be something to consider. Not a bad way to use the money by investing in yourself. With the 100K and generally low cost of post-secondary education in Europe it is possible. Whether you really want to invest that time though is something you have to decide for yourself. Depending on your current education it could be as long as 10 years to get to the point that you are a "researcher" though a low level beginner (post-doc or perhaps industrial researcher). If you've already got an undergraduate degree in something related to what you want to do then that could cut a number of years off of that.

[hithere]

How are the mortgage rates and real estate market in Italy? This could be a good opportunity to borrow money to buy a place to live, use some of this 100K as a down payment and invest the rest for the long term.

[TedSwippet]

If you decide to invest the money, consider The Three-Fund Portfolio....

... or, more relevantly for a non-US investor: Simple non-US portfolios - Bogleheads

[Bdzyd]

I've recently written a blog post about buying vs renting.
https://www.cyofinance.com/post/buying- ... he-numbers and https://www.cyofinance.com/post/buying- ... he-numbers

The example I used is based on buying an apartment in Abu Dhabi vs renting the same apartment and investing the down payment.

I don't know how the property market has done in italy in your hometown historically, but property is a good investment compared to not investing. However, investing bogleheads style gives you more flexibility, and in many cases comes out better financially than renting (if you have a mortgage). The eventual monetary outcome is highly dependent on how the housing market for your individual property does, so it's really hard to predict unless you know a lot about the place where you're buying. And as always, a single property isn't diversified, but a single share of VWRD is.

You're 28, you're just at the start of your adult life. You sound like you don't really know what you might want for your future, so flexibility will be your friend.

Buying a property to live in makes sense if you plan on staying in it for a long time, but that means you can't move for work, education, or love. It ties you to a place. Sure you can sell, but it's a lot of money all in one asset that isn't always easy to sell. (and it costs time and money to sell).

There is a large community of people on the SimplyFi.org facebook group (mostly living in the UAE) that support each other with Bogleheads style investing. There are some Italians too!

I hope this information helps you.

[Mr.BB]

Hi thanks all.
Beside the fact that the first problem is toxic parents/brothers, so I'd like to go away from them, even if I stay in the same town, it's fine..
Then I'd like to address the very second problem, which is something very common in my country: us, from 20s to early 30s, "don't have a plan", because of bad society and government politics.
I really like being is a field like "research", but I do not have a degree, but a office job instead.

Why not use that money to fund a degree. If your in the right field you will probably increase your future earning from your research job.

[RobLyons]

I would do the following:

1.) Create an emergency fund (if you don't already have one)
2.) Invest a good portion into VTSAX or other broad based, low cost index fund(s).
3.) Put 20% down on a home purchase
4.) Spend some of the money to have some fun

I don't know enough about real estate to do the apartment thing and wouldn't want the hassle. Same for the hotel thing. But that's just me. Maybe you know more about it and/or have a passion for those industries? I also would not want to live in a camper.

[jg12345]

Hi thanks all.
Beside the fact that the first problem is toxic parents/brothers, so I'd like to go away from them, even if I stay in the same town, it's fine..
Then I'd like to address the very second problem, which is something very common in my country: us, from 20s to early 30s, "don't have a plan", because of bad society and government politics.
I really like being is a field like "research", but I do not have a degree, but a office job instead.

OK, we're getting there. So 1) you are ok in your city, 2) you would like to do some sort of research, but you do not have a degree, and 3) you do not want to continue living where you are.

Potential solutions:
1- study and get a degree with part of the 100k. you will not get a mortgage as a student so...
2- invest the equivalent of a 20% downpayment in quasi-cash or 5 years "conto deposito" (I am presuming your degree will take about 5 years)
3- invest the rest in stocks/bonds
4- once you have your degree, get a job you like somewhat better, buy a house with a mortgage

Best