{ "media_type": "text", "post_content": "My grandfather passed away a couple months ago and I just learned I’ll be inheriting around 200k euro. What is the smartest way to invest this money? Is it smart to not spend any of it and just put it all away? I am 23 years old. Thank you in advance for the advice and I’d appreciate any personal stories / lessons learned as well.", "post_id": "5efbe1e22325b70030b1b290", "reply_count": 45, "vote_count": 8, "bowl_id": "5e6fe1c31f5e51001d267e46", "bowl_name": "Coronavirus Work-life" }

My grandfather passed away a couple months ago and I just learned I’ll be inheriting around 200k euro. What is the smartest way to invest this money? Is it smart to not spend any of it and just put it all away? I am 23 years old. Thank you in advance for the advice and I’d appreciate any personal stories / lessons learned as well.

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

I’d probably put it in a savings account until late July or so at least (after paying off any debt and such) - no one can time the market but it’s not a bad move to see how Q3 results play out before investing. I’ll probably get a lot of flak here for saying that. If you invest, I would advise doing it for the long haul (low cost S&P index fund or something) unless you really know what you’re doing - I personally would run it a bit safer with inheritance out of respect for the family member, and low cost index funds never go wrong with enough time in market - and using the money at a later date when you need the large sum more than you do now. If you go the savings route, sure that whatever savings account you keep it in has sufficient FDIC coverage. You could do a Certificate of Deposit and make some (low) interest off of it as well. Another great option is to use it towards a down payment, if you’re looking to buy soon (but again, might be wise to wait 12-18 months given that we won’t see any housing impact for a while, for a variety of reasons). My friend received an inheritance from his grandmother and used it to buy a house. I loved the symbolism of that. Graduate school could be another option - 200K will be great towards an MBA - again, just keep it somewhere conservative so you know it’ll be there if you need it soon! It is smart not to spend any of it and put it all away, but also smart to make solid investment decisions and/or use some of it on things that would make you happy (or him to see you with). Just don’t feel any rush to do so immediately. We are in strange times. So sorry for your loss, OP. Hope you and your loved ones are doing well. Edit: I personally would hold off on hiring a financial advisor. Don’t think you need it really. If you do hire one, make sure they’re reputable and working for a flat fee.

likesmart

OP, condolences as this must be tough for you. I wouldnt do any of the stuff listed above until you do some research on your end. You need to move that €200k into $ so your financial institution will take a chunk of that for conversion fees. Investigate how you can convert that with the least amount of pain. Second, figure out tax ramifications. Our government generally allows “gifts” up to $10k. Im not sure how we handle foreign transactions like this. The US has an estate tax which shouldnt be applicable for a German national dying. A financial advisor may be a good idea to figure the above our, however, EY likely has some independence procedures in place so dont just hire anyone. See how EY recommends advisors for this. Once you have the money, you may not want to pay an advisor to manage that unless you have additional money to manage alongside this lump sum. My personal recommendation, sit still for a little while. I expect a wild ride the next 6-12 months for stocks and interest rates wont be moving (upward) anytime soon.

likehelpful

FYI, Germany does indeed have an inheritance task. The rate apparently varies. You will need to get some help from someone in Germany to make sure you pay the taxes then identify a route to bring the rest home. German bureaucracy can be a nightmare to deal with so try to find some help here. Ask about “Erbschaftsteuer”.

Recent IconRecent

@EY OP: Sorry to hear about your grandfather. Are you ok?

likeuplifting

This 🖤👆🏻

like

Why is everyone saying hire a financial advisor. For 200k? No. First pay off debts. Second establish emergency fund. Third max out retirement. Forth, S&P 500 index fund and don't touch till retirement or you need it. Unless there are short term goals like a house to save for and you want to use money for that, market over time has always been reliable. If that doesn't prove to be the case, everyone's 401k is fucked, their retirement is fucked, and the whole economy is fucked.

likesmart

Slalom, that’s why a good financial advisor would say not to dump it all into the S&P 500. A solid chunk of your portfolio should be diversified into international markets and other assets that would protect you in case the US economy truly crumbles.

Fill up your rainy day/safety net savings first. Once that's full, invest the majority of it per the suggestions above. Make sure to take some small % to enjoy those. Do something you and your grandfather enjoyed together, or just something he knows you'd be happy spending the money on.

like

*to enjoy yourself

I’d recommend asking around for a reputable financial advisor for advice (ask friends, family, coworkers even). An interest bearing savings account is safe but probably better places to go

like

Don’t give your money to someone else for a fee when the knowledge is freely available on the inter webs

like

I wouldn’t play the stock market just quite yet.

like

Hookers and blow are a much safer bet until COVID is over.

like

House

like

Sorry for your loss. I'd pre-order a cyber truck.

likefunny

Sorry to hear about your grandfather OP 200k is a lot of money for someone. I’m sure if your grandfather was leaving you this much money he’d want you to enjoy yourself and set yourself up for the future. I recommend taking a small amount maybe 5k and using that for enjoyment then diversify the rest, high yield savings, bonds, stocks, mutual funds, etc, if youre ready to settle down maybe buy a home or if youre handy maybe use some of the money on an investment property as either a rental or flip

like

When my great aunt died a long time ago she left me $10k and instructed me to "spend it on something I didn't need". $200k is a lot of money and I would be willing to bet that your grandfather would want you to take a tiny bit of that and use it to enjoy life to the fullest. Once coronavirus cools off I would take $5-10k and take a fantastic trip, make memories and think about your grandfather as you see the world. Time and youth are the only things you cannot buy.

like

Bitcoin Baby! 🚀

likesmart

Right. You could put $10k (rn about 1.1 bitcoins) and just hold it. And only be investing 5% of your new capital.

likesmart

Sorry to hear about your grandpa. I am in a similar boat as you, my aunt passed from COVID - I’m inheriting about the same. Don’t know exactly where to start, seems like some good advice here. Following...

like

Hire a financial advisor since you have the money. Otherwise buy stock, bond, reit ETFs. Dollar cost averaging (set amount every few weeks/month. You’ll spread your risk and don’t need to time the top or bottom of the market.

like

Buy gold bars. Hide them and tell no one. This is the only way to ensure you keep your buying power through the coming inflation we are about to experience.

likefunny

Should also stock up on ammo to protect your stash of gold bars

likefunny

Since young people are all about experiences and not material things, I would say hookers and blow. One month of debauchery will serve you a lifetime of memories and stories to share.

like

Sorry for your loss. ❤️ For that amount of money and with interest where it is, I would recommend a house, wait for prices to drop, look for something that will increase in value in 5-10 years (blue collar areas will always rent and might be most impacted house price wise), if you can renovate it to increase value etc.

like

Financial advisor. Maybe take out 1K and buy yourself something nice. Save the rest. Seriously, just save the rest of it into diversified investments, and don’t touch it. You’ll thank yourself when you hit 40. By then, you’ll have made a handsome profit without even touching it.

like

I expect we’ll see property values decrease a bit, if not eventually a lot, due to Covid related recession/depression. I would keep an eye on the real estate market and consider making a smart investment you can afford at what feels like a low in the market. And then sit on it for at least 5-10 years. If you buy in a place people want to be odds are you will eventually come up very well.

like

Very sorry for your loss...I may have missed it being mentioned here, but if you are a US tax resident and getting an inheritance that large from outside of the US, you may have a F3520 filing requirement for 2020. Onerous penalties if not handled properly.

like

Related Posts

Ever have one of those days where your lesson plans just do not fall through and it feels like an absolute disaster of yelling all day?? Please tell me im not alone and that this happens to teachers sometimes 🤣

likefunnysmarthelpful

What's a valuable life lesson you had to learn the hard way?

like

What do you use and enjoy for grammar in upper elementary? I’d like something more natural than a workbook, but I like the structure of prescribed lessons!

like

Has anyone filed a police report with LA county that have video evidence and the faces of the criminals? Any lessons learned? I recently got my bike stolen and I want to make sure the footage I have gets seen by an officer.

like

I think the real lesson here is to never put “Incoming hire at...”

likefunnyhelpful

Groomed and rode my lesson horse today. What a beautiful end to a busy day. Sleep well everyone ❤️

likeuplifting

Really? Y’all didn’t know that it was him? Well, I hope you know. Learn a lesson in democracy, yet?

Post Photo
like

At family reunion and playing Monopoly Deal (first to $1M wins) with younger cousins. Crushed them. Teaching life lessons. 👌

like

Any other teachers having to be in busy work classes these next two weeks rather than planning your lessons -Canvas-Google Classroom and everything else we need to do before students arrive?

likehelpful

Thought I'd share this for inspiration. I was eating right and working out for the past few weeks and my weight on the scale was not budging which in turn was demotivating me. Yesterday was my first rest day and cheat day. I also slept a full 8 hrs. This morning I stepped on the scale and voila! Down 6 lbs. This has motivated me to keep pushing. Another 15 lbs to my target. lesson learned - Trust the process!

likeupliftinghelpful

Is there a way where you can have a zoom lesson while doing an interactive pear deck? Is there a way to do a poll?

like

Any good ideas for teaching students about coins? Our first graders have been struggling to master lessons about money.

like

I teach Economics and Personal Finance at a specialty school. I use NGPF for personal finance but I am seeking Economics lessons for G&T

I’ve been burned by the stock market before trading options (when the market bottomed out in 2016) and I learned my lesson on recklessly speculating on spikes and dips in the market. Anyone else feel like this situation is gonna create a class of retail investors who are over confident in the “ease” of timing the market, without doing an research, after all this dies down?

like

What is the best lesson plan template you have used? I need something quick but detailed to use weekly.

like

Anyone else find it interesting how easy it is to recognize people wearing masks over much of their faces? Good lesson for bank robbers. The eyes have it!

likehelpfulfunny

I've been teaching astronomy and running the school planetarium for 5 years now. Just thought it would be nice to share lessons or planetarium shows with others to generate new ideas

I've been "voluntold" to demo an "enrichment lesson" to be filmed and broadcast on our school district tv channel. I'm totally drawing a blank on what to do...what is broadly appealing from US hist?

likeuplifting

Have any of your firms or law departments planned firm or department-wide fundraisers, pro bono projects, or volunteer events that specifically offer legal assistance to combat racial inequality? We can donate money or time individually, but a small group of us at my firm are brainstorming ideas that would make a bigger impact with some sort of large scale effort. Such a daunting concept. Any ideas, lessons learned or cautions would be much appreciated!

like

What’s the most important lesson you learned in consulting?

like

Additional Posts

All Deloitte guys, can you please tell me if Deloitte will revise my offer if I show a recent offer with higher compensation? 15 Days left for joining.

like

Lied about my salary so I could get more money from a company. Is there any way they could find out my current salary? 🧐

likesmartfunny

Do you feel like you have to trade between good culture and comp, or do they typically go together in your experience?

likehelpful

Recently relocated to a new city (MCOL) from HCOL, got a big salary bump, was thinking about saving money and got a really cheap studio. But I hate the place so far for 1) I can hear noise for everything 2) The place is too small 3) emotional depressed for living in such a small place. Should I pay 1.5X rent to get out here and get a nice place?

like

Do you share your exit interviews with the direct manager?

like

Where did the senior consultants (post mba) you know, end up after being laid off this winter/spring? Was it easy or hard for them to find jobs?

like

Any gay male fishies in San Diego?

likefunny
like

MD at Accenture, Big4 or MBB vs Architect at FANG, what role has more total comp and better benefits?

Hi friends, Need your suggestions. I am having 7YoE in .Net technologies. As i am having offer letter of below org. 1. Accenture 2. Publicis Sapient 3. Globallogic Can you please tell me which org is good to join considering below points: 1. WLB 2. Growth with Job Security 3. Onsite Opportunity

like

Anyone taking a “sick” day today? Dont feel like leaving my bed and its 8:15.

like

Has anyone gone from Big 4 to a small no name accounting firm? Are you happy you made the move? Are the decreased hours worth the drop off in resources, client prestige, and technology?

like

Did any KPMG folks get laid off this week?

like

Looking for a Salesforce referral, anyone open to help? It’s director level. TIA!

like

Do you ever get these in mails from mba admissions counselors?

Post Photo
like

This is such a basic question, but what’s the best way to give my two weeks and not have things be completely awkward at work? I’m leaving to do the same type of work, but at a firm that I worked for in law school and that I know has a much better culture. My boss has a tendency to be passive aggressive towards people that are leaving and given that my office is right next to hers I’m worried my last two weeks are going to be so uncomfortable. Suggestions/advice?

like

How do you cope with work in early pregnancy and exhaustion? I don’t have lots of common pregnancy symptoms except cramps and fatigue. The exhaustion is on high today!!! Yawning through my zoom meetings and it’s only 11am here on the west coast. I’m also a team lead so I need to be present on meetings. I don’t know how to cope lol. I slept a lot through the holidays but now I’m back at work. I even overslept for my 8am meeting today 😫😂.

like

Best spg/Marriott hotels in the Caribbean?

like

Has anyone received an with the expectations to have your home office in City/State 1 then you request to be based in City/State 2? Were you successful?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal