I’m 32F living in one of the most expensive non-US cities worldwide. I reevaluated my financial plans and would like to get your thoughts and pointers from the wiser fellow here.
Have a 380k usd net worth, and my financial goals are:
1. Buy a first home
2. Children education to top university (single, no kids now. But i know this is what I want someday)
3. Retirement by 55
I don’t actively invest in this period, but keen to know how others do it & choose the right invsmt vehicle for above goals.

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380k net worth is great - all savings? And where would you like to buy a home? Lastly, will children go to school in the US? Bc European top unis are significantly more affordable.

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SC is right. I go to a top European business school and while it is still expensive, it is nearly not as expensive as a top American school.

I think the issue is to pull those off, you'll need to make a fair bit per year. Earning power is going to be the #1 impact here. I know that seems useless to say, but IMO, you'll need to maximize your take home to pull this off. That will require tradeoffs. Just being smart with the money you'll make isn't enough. I'm a fairly active day trader and have done very very well at it, but don't make that much. Turning $25k into $70k isn't as helpful to goals like yours as having IB or PE level incomes

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With your net worth you should have been investing. Invest in the markets now.

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Pros of an index fund: actively grows at roughly 8% per year, and minimizes fees for managing the fund. Investments are relatively liquid and can be converted to cash easily and quickly when you need them.

Cons of an index fund: value of investment may go down. May miss out on certain opportunities when compared to actively managed funds.

You could go to an asset manager that will manage a portfolio of investments for you and actively look for returns out in the market, however there are so many asset managers and too many analysts chasing too few returns out in the market, that it’s practically not worth paying the higher fees associated with the manager. You could get lucky and have a good year with 20% returns, or you could get 2-3% returns, or even a loss. In a macroeconomic sense, actively managed funds underperform relative to the index because of over saturation of the #of people chasing returns and the higher fees associated with the active management of funds. The asset manager would look to pick a portfolio of investments somewhere in the 30-50 companies mix that looks to minimize risk and maximize returns based on your particular goals. E.g., if you’re young and can “weather the storm” of the ups and downs in the market, you might have a greater percentage of investments in stocks that are aligned with your values (for instance, they may avoid certain fossil fuel companies or tobacco if you’re philosophically opposed to those assets). If you were older and closer towards retirement, the asset manager would change the mix of your portfolio to less risky investments like bonds. So if your goal is to keep your money and have that security and peace of mind heading into retirement, they would preserve the value of your assets with those less risky assets.

At 32, I’d be interested in growing assets, and if planning to buy a home, I’d want something easily convertible to cash. To me, an index fund seems like a perfectly fine choice. If you’re about to pull the trigger on a home then don’t bother putting it in just to take it right back out.

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Determine how much you’ll sprang each year of retirement to calculate how much you’ll need at age 55 to retire. That gives you a goal.

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