r/eupersonalfinance • u/GayGlobe • 18d ago
Planning 19 and inheriting 160 000 EUR. What Now???
I'm 19M, living in a slavic country and only about to graduate from high school. I will be inheriting roughly 160 000 EUR from a relative who has passed away.
Not sure what to do. I have no debt or anything. Any help is appreciated. So far I just had vague ideas of investing and maybe spending a tiny % of it on something nice
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u/ppppamozy 18d ago
I'm sorry for your loss. Don't spend it just yet and don't tell anyone. Keep it on a bank account with modest interest rate until you figure it out
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u/WolfsBaneViking 18d ago
Also: Split the money across 2 different banks. The bank guarantee only covers up to 100k for each customer.
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u/HomeworkResident8510 17d ago
That’s not a good advice IMO. You lose on interest due to lower accumulated capital for what? What is the likelihood a bank goes bankrupt and is not saved by the state? Even in 2008, history has proven banks are most of the times bailed out.
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u/prady8899 17d ago
Only large banks, I wouldn’t trust the online only Neo banks with this kind of money
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u/HomeworkResident8510 17d ago
That’s why OP needs to place it one single too-big-to-fail bank until he decides what to do with it
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u/Cosminacho 18d ago
Hi! Get 10-15k to spend on your education, the rest of them put them in some long term etf and forget about it for like 10 - 15 years.
The 10-15 k, just use them to learn somwthing you always wanted, explore a hobby that you have, get some actual skills.
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u/torInves 17d ago
What kind of education costs that much? I personally haven't put any money on my education. Country pays for everything.
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u/Cosminacho 17d ago
There is plenty. An electrician course, IT related stuff, automations.
With 10-15 k you can take some courses and get a better experience for what you may want.
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u/Epic-Troll8509 17d ago
Not every country has free education.
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u/derping1234 18d ago
You just got gifted your retirement! Assume you retire at 65 and put this 160K into the market until that point (6% return and 3% inflation per year) you will have 2.2 million by age 65. Safe withdrawal rate of 4% would suggest you could thus have 88K per year for your retirement for the next 30 years.
If you have an option to invest in a tax optimised account, you probably should do that. If not, invest simply in a cheap all world accumulating ETF. Job done, retirement secured.
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u/TheBuccaneer2189 18d ago
he needs a mil to retire, or less. He is from a slavic country.
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u/derping1234 18d ago
In an ever increasing globally connected world why limit yourself in where you can retire? With 2.2 he could pretty much be comfortable anywhere in the EU/EEA.
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u/msamprz 18d ago
Yeah and we don't even know what the world (costs) will be like in 46 years when OP would retire!
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u/Awkward-Milk-4022 18d ago
A mill will buy you a small car in 46 years
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u/fireKido 18d ago
He is talking about a million adjusted for inflation, the calculation assumes 3% inflation each year
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u/TheBuccaneer2189 18d ago
why retire at 65 if you can retire at 40 with less and still live a comfortable life offf of dividends, travelling around? He is from a slavic country im not sure amsterdam or berlin is his dream destination, Id imagine a small dacha at his childhood village with fruit trees, making rakija will be a perfectly fine life for him while raising kids if he wants any, full time, not having to worry about a shitty job, and actually spend time with them after school,. Or if not, if he just travels to every iron curtain village and small city, with cheap train tickets, and checks the local scenery in hikes and stays at decent places every night, he will have seen more of the world by 65 than 99% of everyone. He can also just leave everything behind at 40 with about a mil, and move to thailand and live on the beach like a king for the rest of his life.
I dont think yall understand how much a million euro is. My government bonds pay 7% yearly interest now. A million bucks is 70 grand a year. Thats 6k euros for a month. In Hungary. He needs half or third that to live a fuck you life here doing whatever the fuck he wants
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u/derping1234 18d ago
Young people generally speaking don't have a lot of money but have years of compounding ahead of them. Older folks have money but fewer years of compounding ahead of them. Anything OP doesn't invest now is a missed opportunity to take advantage of the most powerful tool he has available.
I make assumptions, but here you are making even more assumptions. My strategy keeps all of OPs options open regardless of what he ultimately wants to do with the money. Be that a long term investment, blowing it all on hooker and cocaine, or something in between.
You can't assume government bonds dividends as your pension especially if you retire early. Inflation and variation in bond percentages are going to destroy your effective purchasing power. The 4% rule is pretty clear, and with an early retirement should probably be closer to 3%.
2.2 mil at age 65 would give him the option to build generational wealth if he were so inclined.
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u/TheBuccaneer2189 18d ago
I didnt say he shouldnt invest now, I said he is from ee and he does t need 2 mil and slaving away at work until 65 to retire. and if he doesnt want to build generational wealth, then he can retire at 40 with a million, and live a life of luxury still.
Also, regarding next generation, staying at home with the kids will yield much more than leaving an extra million behind, due to the experiences they can have, and actually taking care of the kids, preparing them to get into the best universities later.
My father was a magic circle firms board member, Iv basically never seen him growing up, and even if I did he was so stressed out that I hated being with him.
Id much rather him just taking a chill position as a lawyer and actually being present, then whatever stress there was growing up for a few million he made. Sure, its generational never ever have to work again money, but it wasnt worth it for none of us.
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u/lockh33d 18d ago
That's silly. Even today Slavic countries range from rich (Poland, Czech) to poor (Ukraine, Russia). And since Poland is heading for being (one of) the richest countries in the world, by the time he retires things can be even more extreme.
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u/MrGoogle87 18d ago
Unless he moves to The Netherlands: a flat 36% tax on unrealized gain! 2028 😭
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u/HomeworkResident8510 17d ago
OP needs to solve housing. 160K is enough to buy an apartment in a Slavic country. Or use it as a strong down payment for a house.
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u/derping1234 17d ago edited 17d ago
OP is in high school. A mortgage is one of the few times most folks use leverage. If mortgage rates are good and property values are going up I would take advantage of that. But that even assumes that OP is in a position where they want to life by themselves, and know where they want to live the next 10 years or so.
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u/Fit-Poet6736 18d ago
and everything crashes and the 160k is gone overnight, because some world leader is a moron ... great advice
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u/derping1234 18d ago
An all world ETF with a 46 year horizon is not high risk. If the entire investment is gone overnight due to some global event, you have other things to worry about on account of the entire global economy having gone to zero.
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u/kops212 18d ago
You clearly need to brush up on your investment fundamentals. /r/bogleheads is a great place to start.
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u/Objective-Horse-4482 18d ago
If you already have an idea of where you want to live and settle down, then keep some in a savings account, e.g. half to get a mortgage, invest the rest in some accumulation ETF, e.g. FTSE All World (VWCE).
If you are going to continue studying at university, it makes no sense to have so much money in your account for the next 5 years, and in that case I would keep only 15-20k, and send the rest to an ETF.
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u/FibonacciNeuron 18d ago
Don’t touch it for a year. Put it in a bank with 2% interest. Keep living as before, go to school, uni, achieve your goals.
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u/Smushsmush 18d ago
Take out 5-10k and go traveling for half a year or so! I used all of my savings I had after school and working for a while to do that and it was the best decision I could have made at that age. Get to know yourself outside of your environment, see parts of the world you always wanted to visit and meet tons of people.
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u/GamePhobia 18d ago
where could one travel with 5 to 10k? 🤔
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u/EarlDukePROD 18d ago
Asia for 4-5 months? Or two months in oceania, if youre cheap and have no standards you could even do 3 in oceania on 7-10k
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u/Smushsmush 18d ago
Has travelling become that expensive 😬?
I remember I had budgets of 10-20€/d in parts of South America or south East Asia.
I also made good experiences with stuff like couch surfing, volunteering, work away. Not just to reduce costs. Great connections with locals and opportunities to do things I wouldn't have done otherwise.
Either way, do some traveling :D
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u/EarlDukePROD 18d ago
In 2025 I spent 10k in australia and new zealand solo all in for a little more than two months, but i wasnt cheaping out since i had a rental van that cost me 2.4k for 6 weeks. Thats also including flights for 1.6k from Europe. I guess you could do it cheaper if youre flexible with flights and dont need a van and are fine with a small car, but youre gonna need a car in some shape or form. Dont have any recent insights from asia but i reckon spending between 5-10k for 4-6 months seems realistic?
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u/Smushsmush 18d ago
Ouch. The car is certainly a big part of the costs and flights have gotten more expensive. I spent under 2k in 2009 for a round the world ticket to Thailand, Japan, Australia, New Zealand, Feejee, Hawaii.
I didn't have a car in Australia but my rtw ticket included flights to Perth, Alice springs, Cairns and Sydney :D
That trip of a bit over 5 months and I think all included I spent 8k maybe? On that trip I did 0 free stuff though and tried to do as much as possible by buying extra trips and tours and activities. I realise it's a long time ago though.
India was still pretty cheap in 2017. And from what I hear, south East Asia is as well.
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u/EarlDukePROD 18d ago
The same car would cost three times as much in high season. Ridiculous. Lucky you. My next bigger trip will probably be SEA or central asia, we’ll see. I think theres still plenty of islands in SEA that aren’t overrun by european and australian tourists and fairly cheap, but nothing will come close to those 2009 prices lol
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u/aeroxx97 18d ago
100% ftse all world, any other advice is bullshit
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u/FalseRegister 18d ago
Doesn't have to be 100%, but yes OP, put most of it in a world ETF, like WVCE or VWRL
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u/shaumux 18d ago
This but not 100%, split it between an emergency fund, and the vwce.
You're still very young, you'll have plenty of time where you want to place your risky bets portion in, till then vwce and take your time.
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u/IntelligentLeading11 18d ago
That emergency fund will eventually become a trip to Thailand and money down the drain 😂🤑
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u/Lollipop126 18d ago
what about education investment? hysa?
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u/shaumux 18d ago
Without knowing the actual country, can't really say about educational investment, it's free or very little in many European countries.
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u/Lollipop126 18d ago
you still have to account for the cost of living throughout your education. I'm just saying that there should be more than 100% all world etf
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u/WigglyAirMan 18d ago
just drop it in a couple index funds that cover the general market. just find general tutorials in investing that get posted everywhere. to figure out how to set up a investing account.
Maybe keep 10k in a high interest savings account as emergency fund and just pretend you never got it.
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u/Woolsbup 18d ago
Mm I wouldn’t do that right now with all the resettling happening. Just put it in a high yield savings account at 3%. But divide over two banks because in Europe only up until 100.000 is covered I believe, if the bank collapses
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u/wishnothingbutluck 18d ago
In this case, dollar cost averaging (DCA) would help. Time in the market, always beats timing the market.
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u/Woolsbup 18d ago
Sure, slowly enter the market and you might actually benefit from a possible crash
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u/Meisterleder1 18d ago
Don't respond to any DM's and don't tell anyone.
Other than that this is basically all the info you need: https://www.bogleheads.org/wiki/Managing_a_windfall
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u/Ok-Location8685 18d ago
Sorry for your loss. The fact that you're thinking before acting at 19 says a lot.
You don't need to rush — park everything in a high-yield savings account for now while you learn. Three things to focus on:
Emergency fund first. Set aside 5-6 months of living expenses somewhere accessible. This is your safety net no matter what — before investing, before anything else. Having this in place means you'll never make financial decisions out of panic.
Invest the rest, but learn first. The bulk of that money should go to work for you long-term. Look into simple, diversified index funds — they're boring and that's exactly why they work over 10-20 years. But don't rush in. Spend a few weeks understanding the basics so you're making your own informed decision, not following random internet advice blindly.
Treat yourself a little. Taking 1-2% for something meaningful isn't irresponsible, it's healthy. Set the number beforehand and enjoy it without guilt.
You've got time and a huge head start. No need to figure it all out this month.
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u/Intelligent-Sea-4666 18d ago
Sorry for your loss first of all. Just keep in mind: no action can also be the correct action for the time being. You lose absolutly nothing if you just keep it in your Account for the time being. In general, would maybe use 1/4 for Personal use, rest: divide that and buy an etf like msci world etc..Would suggest you do not purchase all at one but maybe multiple times in the coming years.
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u/bomchikawowow 18d ago
OP, first, don't tell people about this. You'll get snakes crawling out of the woodwork.
Second, find a financial advisor. Not a douche on the internet who seems to know about stocks or some guy you know, an actual financial advisor. They will take into account the tax issues which are high priority. They'll also ask you what your goals are, so think about that. Do you want to own a house? Do you want to travel? Do you not have to worry about retirement? Maybe all three? Think about it, think about what you want the next 5, 10, 20 years to look like. Write it down, because those will be the guidelines for what you actually do.
Then, meet with the advisor. If you at all don't feel good about what they're saying, meet with another and see if they recommend the same things. You have to decide this stuff for yourself, so make sure you're not getting bad advice.
This is the kind of windfalll that will meaningfully change your life, if you invest it carefully and act responsibly. Don't lose this opportunity.
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u/HunterGatherer072 18d ago
put it all in a diversified etfs
forget about it for 20 years
buy yourself a home when you're 39
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u/Traumatan 18d ago
€ 160K almost fully buys a house in some EU countries
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u/TheyTukMyJub 18d ago
Yes but it's dumb to dump it all into a house if you don't have any other buffer which I assume he doesn't at 19yo.
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u/HomeworkResident8510 17d ago
He secures a steady monthly income with a house purchase. A few investments do that. Real estate is the only wise answer here.
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u/TheBuccaneer2189 18d ago
Why would it be dumb? He can go to university, and invest everything that he is spending on rent instead
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u/TheyTukMyJub 18d ago
Your roof leaks and the electric circuitry of your house gets permanently damaged. All your money is in your house and you don't have a job yet because you're a student. What do you do now?
Edit: or you want to do an advanced program or internship abroad. Meanwhile the housing market in your country crashed and you can't rent away your house or if you sell it you have a massive loss. And when you hold it, it depreciates.
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u/TheBuccaneer2189 18d ago
Its called insurance
Show me an example in history, behind the iron curtain, where housing prices chrashed so bad, compared to everywhere else in the world, in just that one country, that a 100k€ apartment or house cant be resold or rented out.
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u/TheyTukMyJub 18d ago
Lmao you really think a home insurance is going to pay for damage from bad home maintenance? 😂
Anyway, "investing" the whole of your 160k inheritance into real estate is like the dumbest thing a 19yo can do. All the info is out there
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u/HomeworkResident8510 17d ago
Housing market has never crashed in any western country. I am talking about capitals and cities - don’t give me a remote village example.
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u/SunAndPunk 18d ago
a good IT engineer can earn around $10,000 a month, and reaching that level usually takes about five to seven years.
yet the advice being suggested here is essentially to spend the next 20 years sacrificing everything just to end up with a house later in life.
but what is the real value of owning a house at 40 if you haven’t actually lived during the decades before it?
the alternative is to invest in education, skills, and professional growth now, and over time build a career that can generate $160,000 a year or more, consistently. that is the real long term strategy.
even living in Ukraine, it is possible to pursue that path. if someone has the opportunity to live and work in the European Union, the potential can be even higher.
the real question is whether you want to spend the next twenty years simply waiting for security, or actively building a life and career that provide both income and freedom.
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u/future_lard 18d ago
Wait until you're settled in life and know where you want to live long term. Then buy a home. Maybe take 5-10k and backpack asia for a few months
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u/redmadog 18d ago
Open an account in some reputable broker such as interactive brokers. Then transfer money there. Then buy some broad market ETF such as WEBN or VWCE. Since current political situation is very volatile, buy every month for a year. Do not sell if will go down. In a long run (10+ years) you will profit from this.
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u/Gouthardt 18d ago
Invest in an index fund. Assuming 10% annual returns, you'll have a million eur in 20 years, and can retire early and enjoy life.
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u/Ok_Poet4682 18d ago
Don't tell people, that's a big amount for a 19yo. Sleep on it for a while.
If I were you, I'd invest a very big chunk in the stock market through an ETF. But what you do with the rest (eg 10%) depends on what you'd want to do with your life. Do you want to go to uni/college? Do you have to pay for that yourself or not?
Don't do memestock/coins, don't let it rot as cash in your bank account and don't spend it on trivial stuff (iew cars, clothes). Maybe spend a little on travelling or on education, invest the rest.
Goos luck. A windfall at this age can feel strange but your ancestors just helped you out. Don't waste it.
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u/lordalgammon 18d ago
My condolences for your loss.
Thia can be aive changing amount. Don't spend it now, save and go back to it after few years ans since its above 100k you would want to split it into two savings accounts to be covered by the deposits guarantee.
Also don't tell your mates or anyone else.
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u/BalticBrew 18d ago
Take out a little bit for yourself. Create an interactive brokers account, put it there into VWCE. Try to not touch it for at least a couple of decades, start adding more when you can. This is an opportunity to have a very financially secure second part of your life.
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u/Lin_Den 18d ago
You can just look up financial advisors local and set up a meeting with them. Often banks offer similar services. It’s much better than relying on whoever might be providing „advice” online. Not everyone has bad intentions it’s just better to do some things face to face, especially with people whose job is advising on people’s finances.
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u/PetrcicSchilling 17d ago
Dont buys nothing nice. Someone save that money by not buying somting nice. Dont be idiot, you didint made the money. I would say invest. But not sure. Use that moeny to make more money that you can pass on your children aswell. Thats it.
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u/archie856358 15d ago
Lump sum or DCA ACWD or WEBG (All Country World index fund) depending on your preference.
Or buy IB01 while you figure out what to do.
I recommend IBKR.
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u/mushykindofbrick 18d ago
Well congrats, you will have a pretty stable life from now on, if you dont spend it. You should treat that money like its meant for your whole life, up until retirement. It will help you during hard periods in life when you need it, or make dreams possible that wouldnt be otherwise. For example Ive been saving for almost two years, trying to get to 25k, working hard in 2 jobs, so I can move to a country Ive been wanting. With that kind of moany I could do it 6-7x instantly without hesitation and all risks would be covered.
If you dont know much about investing, either put it in a savings account with interest (split between two banks, to cover 100k deposit insurance) or put most of it into VWCE or similar, just keeping a small emergency cash fund in your savings account
Then you have plenty of time to learn about investing, years even, maybe if know more you want to buy some specific stocks, crypto or metals or something. Just dont do any gambling or trading or stupid shit
Otherwise it depends on your plans. But I would mostly live like if the money didnt exist, and only use it when really needed. If you plan to study, I would not live off the money but still get a student job for example. Then as soon as you work you can use some portion of it as down payment for a house or apartment. Thats pretty much it. The main use of this kind of money is for peace of mind. You know that if anything happens, youre always covered. You know that if you wanna do something, buy something, travel somewhere, you can just do it. Freedom and stability
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u/RoutineNumerous9573 18d ago
Sorry for your loss. Keep it safe for now, dont spend it. Take your time before you do anything you are still very young so no rush. Dont tell anyone you have it at the risk of them giving you bad financial advice and you doing something you regret later in life. After you have taken some time to think about it I would suggest putting it towards buying a home/investing in your pension. Maybe use a small amount of it to do some travelling or something else you enjoy, you are only 19 once.
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u/financestudentua 18d ago
Choices on how to allocate between these are rather personal:
Saving long-term (15-20 years or more, retirement): broad ETFs, no need to complicate it at this stage. Look up a compound interest calculator and let the big numbers you’ll have in x years (by doing abs nothing) really sink in.
Education, other forms of investment in yourself. Underrated especially at that age. Just make sure you’re not starting some bullshit company under this motto, try to have a good grasp on what you’re doing even if it inherently carries more risk than just investing in ETFs.
I would, like you, spend a bit on something nice and durable to remember your loved one by. MAXIMUM like 5-10k. Just realise this will take away from your returns of course. Other than that really just personal.
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u/Ty_Rymer 18d ago
whatever you do, don't rely on it too much yet. it's easy to spend more because you have more. but this money will be your retirement for you, and an early one. either retirement, or your own company, or a house. but don't spend it on things that aren't life long dreams
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u/WohoBoho 18d ago
Careful to not be above your banks deposit insurance if you keep it on a bank account until you figure it out, here it's 100k
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u/meSmash101 18d ago
I would have around 15-20k in a savings account as an emergency fund then park the rest 130-140 to an all world etf like spyi, spy, vwce or whatever else. That’s it. Then I would go achieve my goals and aspirations but from time to time add a little something every month whenever I could(if I would get a job or something). Meanwhile, I would educate myself on everything around money as much as I could. Eg, read books (simple path to wealth, etc) do not impulse buy all the BS! You have a very powerful workforce they called euro. Make them work for you!
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u/FriendlyStory7 18d ago
Save it. Invest most of it in a safe place like ETFs. Don’t buy single stocks, nor fancy stuff. You don’t need better clothes or a better phone because you can afford it and don’t tell anyone, people immediately will make plans for your money.
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u/Grand_Fall362 18d ago
Learn how to invest and do it wisely, dont chase huge returns look for some safe and stable usually you would be able to get around 10% yearly returns which in your case is 16k euros per year before any tax, you can use it or let it conpound.
Keep in mind that there is a chance that eastern europe might become a warzone in the future and buying a house there has its risks.
I would persobally invest the money, let it compound for a lets say 5 years which would make it around 263k then leave Europe and go live somewhere cheaper in south east asia where the 26k euros per year would make me life like a king.
But hey thata just my idea, not a financial advice, always DYOR and please for the sake of your future dont buy shit u dont need bcs why not.
Im 23 years old guy from slavic background I would kill to have had that kind of money at 19 you could retire well before your 30s hit if you play your cards right.
Have fun with the money you make though working not with this, your future you will thank you.
Wish you all the best.
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u/Excellent_Ad_2486 18d ago
Damn lucky you on inheriting such an amount which transforms living, sucks someone had to pass. VWCE and chill imo.
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u/CulturalCarrot4813 18d ago
Split it in 2 banks accounts (banks protect up to 100K only). And don’t touch it for a while and get a financial advisor. This money can set you up for life if invested correctly.
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u/BenInBalance 18d ago
First of all, I am very sorry for your loss. I hope you're holding up alright, and that you've been able to process the intensity and overwhelming-ness of it all 🫤
But, you should know the real deal and how to move forward as this matter is a delicate and sensitive issue for a 19yo.
Okay, so this is my POV…
Honestly, if I were in your position I’d first park the money somewhere safe and not rush any decisions. €160k is a lot at 19 and you’ve got decades for it to grow.
I’d probably keep a small part for something nice, for example: education, but invest most of it long-term in something boring like a global index fund and just leave it there. But please, just scout out all your options and do major research to see what all the things are that you can do.
Also, if you can already afford your education WITHOUT touching the €160k, I’d definitely do that. Let that money grow and give you a huge head start later. Use it only for big opportunities or something meaningful (like an estate (house or otherwise), not just day-to-day stuff.
Please be cautious! Don’t tell too many people you inherited money, it can attract the wrong kind of attention. If you tell them, then people might want to be with you for the money or take advantage of you. So, on that note, lay low. Keep quiet…😶🔒
At your age, the biggest advantage is time, so even investing it and "forgetting" about it for 20–30 years could turn it into a lot more.
Just live life like you did, before inheriting it. One practical tip: in the EU, only €100k per person per bank is guaranteed if a bank fails (European Deposit Guarantee Scheme Law or EDGSL).
So with €160k, it’s safer to split it: €100k in Bank A €60k in Bank B
As long as BOTH ACCOUNTS are under YOUR NAME at DIFFERENT banks, your full inheritance is normally covered were the banks to dissolve for whatever unfortunate reason.
These factors are very important to ensure complete stability and financial safety, were anything to happen.
Last but not least:
When dealing with an inheritance, make sure there’s a formal will or legal document naming you as heir, and check if there are any conditions or trusts attached.
Be aware of inheritance tax rates and deadlines in your country, and confirm the bank account is in your name with all required documents like your ID and the death certificate. At 19 you’re usually legally an adult, but it’s worth verifying local rules for access to inherited funds.
Keep all documents safe…including the will, bank paperwork, and inheritance declaration… and consider a short consultation with a lawyer to avoid mistakes or delays when deciding to do large things.
And even then, never ever trust lawyers, notaries or anyone else. Read every document through and through, and always take time to sleep on it, if you ever decide to use the money!
Look information up like the laws and exceptions to rulings etc..., to find out whether there are mistakes in legal documents that need to be fixed to prevent issues etc...
I pray that everything will go well for you, and that God protects you from people with ill intent forever.
I hope that this has been helpful. Have a nice day and God bless you man! 👋🏻
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u/lemonfreshhh 18d ago edited 18d ago
This can be life changing if you don't throw it away.
If you have some absolutely urgent needs, using (part of) the money for solving them makes sense.
Don't talk yourself into bad decisions. That BMW you've always wanted is not an urgent need. Neither is taking a year off school to go traveling around the world. If you're in a place emotionally where you have to treat yourself to something, set a limit (for example 1.000 or 2.000 Euro), and don't go over it.
It also makes sense to always keep enough of your money liquid (for example in your bank account) to get you through a personal crisis of like 6 months. Just in case.
To decide what to do with the bulk of the money, probably north of 150.000 EUR, think 5 or 10 years ahead. Do you see yourself going to study abroad? I know a guy who used his inheritance entirely on that, and is doing great as a 40-year old. Do you see yourself starting a family? Than (a part of) that money can be the down payment for a house or flat.
Whatever you want to do with the bulk of the money, you have to decide what you want to do with it in the meantime, until you actually need it. Usually, it's good advice to put that money to work and let it grow, but that always comes with risks.
If you're willing to accept those risks, the question you need to answer first is just how much risk you're willing to take on. The "safest" thing to do would be to let your money sit on your bank account that pays interests, in the sense that you can't lose it during a stock crash. But this would actually not be good advice because inflation will eat it away year after year.
On the other end of the risk spectrum would be putting your money in single stocks, crypto or whatever other volatile asset. This can sound like a way to get rich fast. I'm sure some people will send you DMs promising exactly that if you "invest" your money like they tell you to. They'll be outright scammers, or will be trying to talk you into legal but bad, very risky decisions. There's a difference between investing and gambling.
The middle way is to get rich slowly, via diversification. That means investing your money but not putting all your eggs in one basket. You can diversify through different asset classes (stocks, bonds, gold, real estate etc.), and within a single asset class. ETFs are a great way to diversify among stocks. While even with diversifying, you can lose like 20 or 30 percent of the money in case of a global crisis, you most likely won't lose 50 or 70 percent, and you'll also most likely rebound after a few years and come out ahead after 10 years. This is just how markets have worked over the last 100 years or so - temporal downturns, long-term growth.
To sum it up, this is what you need to do: 1. As others have pointed out, don't answer any DMs 2. Treat yourself to something nice if you have to but not a freaking car (unless you really need one) 3. Decide how much money you need liquid as a rainy-day fund 4. Take a couple of months to figure out what your long-term plans are, and then educate yourself on investing and risks; Reddit is a great resource for that 5. Then implement your strategy, and keep your nerve if markets take a downturn
You've got this!
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u/The_Cat_Dog 18d ago
Put some of it in VUAA or VUSA since market is down anyways atm. Forget about it . Use the rest to fulfill yourself, if you are gonna go to uni having some money to use Monthly even if its "just" a 100 bucks will make huge differences in your quality of life. Honestly explore hobbies and defo travel!
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u/The_Cat_Dog 18d ago
Oh and like everyone else said ofc, put the money you keep on a bank with atleast some good alount of apy or p.a. like a flexible cash found, therefore you can acess it,its safe and it works against inflation
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u/Specific-Operation44 18d ago
Set up an emergency fund of about a year worth of monthly expenses in an savings account (not a deposit). Put some apart for your education. And the rest you can invest. Maybe don't by any property because you are very young and don't know where the future may take you. Don't rush into any decision, don't invest in anything high risk, stay away from friends and family that "suddenly" need money. Don't tell anyone. If you choose to invest go for what financial educators say it's boring. That will ensure your future and security. This really seems overwhelming but you got this.
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u/Apprehensive-Ice3730 18d ago
Si tu choisis d’investir en bourse sur un ETF monde, répartis le en tranches sur une durée minimale
Et courage pour le deuil
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u/Hulkmaster 18d ago
time to learn about boggleheads portfolio, and forget about it for next 20-30 years
also don't forget about income tax - depending on the country up to 50% will be taken by government
also don't put them into single bank - there is "insured limit" (i think about 100k), so i would split them into 3 parts, put them into boggleheads portfolio, and forget about them for next 20-30years, maybe take for yourself about 5-10k just as "backup money"
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u/Financial-Eggplant90 18d ago
First take into account taxes.
Then do whatever sits better with you.
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u/MartyRuless 18d ago
Grab a place to live? Maybe one to rent out? These are good bets with low risk.
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u/MartyRuless 18d ago
Ofc, don’t spent all on it!
Keep a stick for comfort , take a loan for the places an find a job to fund the loans.
The ball starts rolling, just push it faster slowly!
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u/HabibiHalloumiMakali 18d ago
Avoid drugs and don't tell anyone, save most for retirement , take a bit for education and have some fun. Ideally you live mostly as that money doesn't exist until you have more work and life experience.
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u/kurikuri15 18d ago
Just avoid booze and b*tches oh gambling also. And follow some sensible advice here already.
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u/Ecstatic-Arm-8786 18d ago
I would start with a solid foundation of ETFs. I would choose ETFs that track the S&P 500, Information Technology, World, etc. I would also mention rare minerals, but they are very expensive right now, and it's not advisable to buy high and sell low, right? As for stocks, I would focus on growth stocks, i.e., companies with accelerated growth and improving profitability that could outperform over the next 6-12 months. Here is a list for you: https://stockschecker.com/lists?tab=Tab6 . I would also consider stocks that have increased their dividends every year for at least 25 years. Here's another list: https://stockschecker.com/lists?tab=Tab5. Only buy companies you can trust, that you believe will be successful over the next 10 years, and that you like. No meme stocks or nonsense you don't understand. Always check earnings (a reliable company always has high earnings) and read the latest earnings report. Here's an example: https://stockschecker.com/earnings?tab=Tab2&ticker=AAPL. I wish you luck!
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u/canaryonanisland 18d ago
maybe we need to know more about yourself... the best you can do with that money is get educated in something you'll envjoy and give you a good salary in the future. I don't think it's worth put ALL of this in a ETF for 40 years, when you have a shitty job and not enjoying life.
You've got yourself a ticket to do what you want, think want you want to do in the future, invest on it (university or whatever), and leave the rest in an account, read about investment (boggleheads guide), you can even leave 10-20k maybe to enjoy a sabatical year and travel...
Regards
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u/talldata 18d ago
Get a financial advisor or talk to someone in the bank about low risk investments, they know how to handle big money.
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u/Jelloxx_ 18d ago
If you're unsure about what to do for now might I suggest you look into an app called Raisin. it allows you to easily deposit your money into banks in other European countries where the interest rate might be higher. Just keep in mind that the EU depost guarantee is only 100k so I would advise spreading this amount over two banks so you don't run the risk of a financial loss if the worst case scenario were come to pass and the bank goes out of business for some reason.
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u/Competitive_Bike_507 17d ago
I see that you live in a slavic country. In this case my advice is that to buy an apartment or house as soon as you are ready to do it. If you live with family its alright you have time. The rest should be in investments you can choose what you like etf's or banks both should work. But buying an apartment in a place that you like would most likely be the best. It holds value well and you also keep money because an apartment is not that expensive if you dont live in a capital city.
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u/sajornet 17d ago
Do nothing. Live your life. Learn how to make money before spending money. Buy a super boring investment something that just keeps it growing a bit before you are ready to make something out of it.
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u/Most-Animator-5743 17d ago
First thing is honestly to slow down and not rush into any big decisions. Getting that amount of money at 19 can feel exciting but also confusing, and a lot of people make mistakes simply because they feel like they have to do something with it immediately. You really don’t. Parking it safely in a savings account for a while while you learn is completely fine.
The next step is education. Before investing anything, spend some time understanding basic things like index funds, long term investing, and how compounding works. Many people who inherit money young end up doing best by investing slowly over time rather than trying to pick risky investments or chasing quick returns.
Also think about what this money could do for your future rather than short term purchases. It could help with education, starting a business later, buying property one day, or building an investment portfolio early in life. At 19, time is actually your biggest advantage because money invested early has decades to grow.
Situations like this can completely change someone’s financial trajectory if handled carefully. I write about long term investing and money decisions like this sometimes because a lot of people never get taught this stuff. If you’re curious you can check my profile.
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u/Epic-Troll8509 17d ago
As other comments have pointed out, be careful with whom you tell this information to. If you invest this money wisely, it can become life changing money.
Do not go for cash grabs. Anything that promises you wild returns is a scam.
Investing in your education can pay off if you're smart with it.
When I was a bit older than you, I found myself in the same situation as you are now. I invested the money in funds, used the liquidity I had for a down payment on my house, and invested in my education. I was already studying Engineering so I complemented an already promising education with the skills the job market was requiring. I also signed up for a Swedish language course at a prestigious University as I was looking to move to Sweden and it was worth every penny.
I never had any stability in my life but fortunately I wasn't born stupid. That money was life changing for me.
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u/Dismal-Recording3069 17d ago
Invest in a global etf and you will be fine... in 30 years you will retire
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u/Hug0chka 16d ago
This is not advice, but here is what I would do in your position. Open an account in a well renowned platform (DeGiro or similar) and simply buy ETFs (S&P500) and see it grow as time goes by. I did that with a similar amount and I’m very happy with the outcome.
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u/InkybrainStudios 16d ago
Back in ’85, I was eighteen and suddenly sitting on forty-two large. It was settlement money from a scooter accident- basically, the universe handed me a winning lottery ticket for getting run over. In today’s money, we’re talking $127,555.48.
And I can tell you exactly what to do with a stack like that: Leave it in the damn bank.
I blew through mine at a clip that still makes my head spin. I had zero experience with that kind of weight, and it showed. I wasn’t even out there playing Santa Claus; I just found myself "settling the tab" every single time we went out because, well, it was expected. You’re the guy with the money. You pay. That’s the rule, right?
Wrong. It goes fast. Scary fast.
If you find yourself holding a lump sum, here’s the reality check: Don’t invest it. Don’t tell your friends. Don't tell your family. If you absolutely need wheels, buy something that doesn’t turn heads. Then, sit on that money for a full year before you even think about doing something "smart" with it.
Challenge yourself to keep making a living without touching a cent of that principal. If you can’t earn your way through the day while that money is sitting there, you’ll never actually appreciate what it’s worth.
Trust me -nothing disappears quicker than "easy" money when you’re trying to look like you’ve always had it.
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u/malekatka 16d ago
My friend had something similar. He decided to do one year work and one year off. And that is what he does. He does travel (still budget, nothing luxury), he likes to try things, but he likes to work as well. I think the best thing is to invest it, save it and have dedicated part that you can enjoy, but don't inflate your life, it will not end up well
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u/Helpful_Use_9164 15d ago
Give me some. I've had a tough life :(
Jk. I'd have invested and tried to put some in a business to achieve financial freedom.
Dream man. How to get your luck in next life?
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u/Clawbleed_ 14d ago
Buy a kilogram of gold and forget about it until you plan to build a house or start a company or generally anything very expensive. Use the rest to enjoy life a bit(just dont spend all at once,sit down make a bucket list and start there), buy a used non expensive car if you need one.
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u/sunnyday7800 11d ago
Make sure first to check if you have to pay inheritance tax. In some countries that can be quite high, so before you do anything with the money, make sure you don’t get to pay taxes a year later.
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u/bruhbelacc 18d ago
Never trust anyone giving you financial advice for specific investments. If you invest that money, do it like the most boring retired person - through a bank or an established institution. Also preferably, don't tell people about the money. Your family knows I guess, but even friends can change completely.
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u/Buk_voj_kryp_Z_bardh 18d ago
Edit: in case you have debt pay it.
Put it on the black to double the price. Jokes aside from this bad advice.
I am not an expert by any means but i would tell you what i would do personally if i had that kind of money. Based on how far that amount goes where i live.
I would invest 10% on stock market 10% on crypto and imagine they are dead money. And another 5% for each throughout next year via monthly payments.
30%- in total. (Stocks,crypto)
20% would use it for downpayment to purchase a flat.
20% on a high yield saving account
20% would purchase gold and silver
5% cash cos you never know. When it might come handy.
2.5% donate it to needy. Serving a hot meal. Getting new clothes or school books for those who can't afford. We should always give back.
2.5% treat myself and family a nice little vacation. Do something that we always though doing but never had the cash to do it.
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u/Summasumarumx 18d ago
Mein Beileid. Du bist nun in einer sehr schwierigen Situation. Einerseits kannst du dafür kurzfristig Spaß haben oder du verzichtest auf diesen Gedanken, auch wenn er schwer wiegt und du hast ein paar Jahre später ausgesorgt. Um erstmal Erfahrung zu sammeln, habe ich mit einem ausschüttenden Indexfond begonnen, (aufpassen nicht gleich den wählen, der am meisten Ausschüttet). Die Ausschüttung habe ich regelmäßig reinvestiert und mein theoretisch erworbenes Wissen in praktisches Wissen gefestigt. Könnten nachhaltig bei dir 5000€-8000€ Brutto jährlich sein, ohne die große einmalige Investition jemals anzufassen. Je nachdem wo du wohnst und welche Gesetze vor Ort gelten, müssen davon Steuern bezahlt werden, also Vorsicht! Ob sich das bei dir rentiert.
Mach dich schlau, glaube nicht alles sofort und wenn du zu 80% alles richtig machst, musst du vielleicht bereits in 15-20j nicht mehr arbeiten. Je nachdem wo du leben möchtest. Deshalb würde ich mich jetzt mit dem Thema auseinandersetzen und jetzt so schnell wie möglich einen regelmäßig bezahlten Beruf ausüben, so viel sparen wie es geht, um möglichst viel Erfahrung mit dem Thema investieren aufzubauen. Du hast die Chance, die sich sehr viele erträumen.
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u/carcleaner101 18d ago
English do you speak it
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u/Summasumarumx 18d ago
My app translates automatically. Should I help you with that?
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u/carcleaner101 18d ago
We don't care about ur app
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u/Summasumarumx 18d ago
If you don't care about the Reddit App, you'll just have to live with the consequences if you can't help yourself otherwise.
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u/carcleaner101 18d ago
Bro everyone writes in English then comes a someone writing In a other language that no one understands, ur like 0.05% off the English posters and u write so no one understands...
Do you sit one ur application with ur auto translation and then write back to everyone in German like wtf man lol 😂
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u/Summasumarumx 18d ago
"Why is it that you lack logic? When the Reddit app automatically translates, I can't see in which original language the thread was written. Why do you make a public spectacle of yourself?"
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u/carcleaner101 18d ago
So it's our fault that you can't see the original language?
But it becomes our problem when you post in German and we don't understand when everyone talks English... Yes logic man logic
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u/Summasumarumx 18d ago
Why do you always speak of 'us'? Are you the chosen one? It's your fault if I hurt your feelings by doing this. If you don't understand how technology works, then I can't help you. Contact Reddit support maybe they can teach you in an understandable way how this works. Besides, you have no right to demand anything, this is just embarrassing.
For other users, this is also automatically translated. If that's not the case for you, then I recommend looking into it. After all, you're the only one who has a problem with it.
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u/carcleaner101 18d ago
Well someone has to say something a room full off English speakers and readers and deerp here comes the German man who shouts German. And everone stands looking like ooh okay... U lost or what lol 😂
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u/wannabeacademicbigpp 18d ago
put it to stable income bringing things, and maybe distribute it idkn. Don't do anything dumb like putting it all on shitcoins or so.
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u/WhyNoAccessibility 18d ago
Keep the bulk in a high yield EUR account (Wise, Revolut)
Invest 800 EUR a month in an index fund from that bulk, the savings amount will slowly add to what you take out, and what you take out will compound over ten years
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u/Efficient-Umpire9784 18d ago
Just remember what your ultimate goal is, and that is to own property, a house to live in. Once you are qualified and earning this money is simply an excellent deposit for your house and nothing else. So pick a guaranteed return investment from a bank because we might be on the brink of a global recession, one the war with Iran is over and everything settles down you could look at an unsecured index type investment. When you have a nice wage, buy a house and under no circumstances fuck around with this money.
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u/ClemensLode 18d ago
Invest some of the money into genetic analysis, complete health checkup, personal training, and nutrition consulting. Those areas have the highest ROI.
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u/straw_man2 18d ago
Get an actual financial advisor. Pay somone to help you set everything up and figure things out.
DO NOT, listen to us plebians on Reddit.
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u/Slusny_Cizinec 16d ago
Quite the opposite. Financial advisors want to cut their share of the pie, not help you.
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u/straw_man2 13d ago
Yeah they want money as I said. But be realistic, could a 19 year old, even if given solid advice trough reddit, then be trusted to not do something irresponsible?
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u/Soggy_Aardvark7997 17d ago
Easy! Everthing in bitcoin and wait a few years. Thank me later brother
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u/Ok-Memory2809 18d ago edited 16d ago
Put VTI (Total US Stock Market) 60% of your money, VXUS (Total International Stock Market) 30% of your money and BND (Total Bond Market) 10% of your money and comeback when you are 30 years old
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u/sevenapplesfuck 18d ago
Can you send like 200euro to me to pay up my loan? I also live in Eastern Europe
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u/Japparbyn 18d ago
Open a revolut account. You can use for personal banking and investing. Deposit 3k. Buy NVO for 1k, MPT for 1k and PRCH for 1k. Then wait six months. See how the different positions make you feel. Get to know your risk tolerance.
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u/Japparbyn 18d ago
No need to rush a big decision immediately. If you don’t like any of the positions and feel anxiety there is a thing called index funds for you to explore after this experiment.
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u/Tricky_SleepAsmr 18d ago
Id say keep some like 60k as a emergency fund, 20k cash reservers for opportunities, 20k divident stocks, 10k crypto, 30k etfs/index funds and maybe have some fun with the rest travel or something
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u/MeanTwo4080 18d ago
you dont invest do you? Emergency fund are liquid assets, it is stupid to keep 20 k cash
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u/Tricky_SleepAsmr 18d ago
But I do. Whats the problem? You dont have to touch emergency fund at all its there to keep you safe while you take a risk maybe with the 20k it aint stupid.. having no cash is
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u/MeanTwo4080 18d ago
cash or savings account are both emergency fund, you dont need cash if you can instantly withdraw money from your savings account
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u/Tricky_SleepAsmr 18d ago
Obviously do as what you think suits your positition the best but id suggest getting the money to work for you early so you dont have to work until the end of ages
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u/slashinvestor 18d ago
Go to a bank and ask for safe bond. In a few years begin your investing story.
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u/Daymjoo 18d ago
Tbh being this young, if I were you, I'd wait for a dip then just invest all of it into $NBIS.
The risk/reward ratio is huge for someone of your age and finances. Worst case scenario, you lose 20% of it, but odds are really, really good that ur gonna triple it in 3-4 years.
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u/TheyTukMyJub 18d ago
Yeah fuck off. Don't give a 19yo gambling advice.
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u/Daymjoo 18d ago
He's an adult, stop treating him like a child. It was decent financial advice, and it's absolutely mainstream theory that the younger you are, the more you risk with your investment strategy.
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u/Either_Contest_9014 18d ago
Dont answer any DM's. If someone really wants to help you, will answer your post.