Personal finance advice / ideas needed

[Trading]

As others wrote, diversify.
Keep a part earning 2%, if necessary, in a strong bank (not Cyprus or any of the PIGS, those banks can end badly; HSBC might be a good choice, but be prepare for low interest and high fees), at least 30%, just in case.
Another part in funds. You can find all kinds, real state, stocks, commodities.
If bitcoin goes lower, under 300, maybe you can buy more.

[Philly]

Real estate speculation was a game of the past.

Tycoon around the world are selling. Buying now implies you are betting against them.


You should invest in production of basic necessity such as food, cloth production. Something that we need everyday.

 

There are so many ways to get into real estate, forget about the tycoons...it's also something we need everyday; a roof over our head.

[gts476]

hm.........

gunna say no.

[Branny]

With real estate you make money in barrelfulls, loose it in truckfulls.

The thing that sets real estate apart from many other investments is that your personal knowledge makes the biggest different in whether you're successful.

Let's say I go into two houses on the same block, from the outside they can look the same, inside can look similar, but both have completely different potential and one can be a money pit. One might conceal a leaky roof with a major mold problem that will cost $10,000 on top of normal repairs. The other property may be just fine in terms of the roof. You can use material defects to your advantage when it comes down to negotiating which is still a socially driven event (Meeting person to person and hashing something out).

The pool of investors you're also betting against is much smaller in most cases. In my specific area I'm in the market with maybe 10 other guys, half of which only buy 1 house a year. My knowledge can give me a leg up on them, compared to other investments you can also use this to your benefit.

The other side is that real estate investment can ruin you. My parents bought their current house off a flipper, guy bought it for $60k, put $20k in it and sold it to my parents for $130k. This house was their 10th flip, however they still didn't grasp the market at all and where it was going. Their next property was purchased for $250k-$300k, they put $100k into it and it eventually sold at a net loss of over $200k. It drove the management into personal bankruptcy as the business wasn't a separate entity. This was 2007 and they still have not re-entered the market. It can be very vicious to those who don't really learn how the market works along with the intricacies of the real estate process. 

[Trading]

Real estate can be a great bet, in the right place (ex. Dubai), in the right moment (2005-2007).

But also can be a nightmare: most part of western world after 2008.

[K128kevin2]

I would invest all of it in opening up a video rental store

[gentlemand]

I know this forum has some bright minds here, so I thought I would ask here.

I realized I have not been very good with my own finances. All my money is simply being kept in banks, which I am sure everyone agrees, is not the smartest idea. Sadly I did not have bright parents to enlighten me on how to manage  finances, so I simply went along through life, lived bellow my means and tried to save some.

Now I realized I want to change it. I don't want cash just sitting there in the bank, when I am sure there are better things to convert it to.

So far I have come up with a very narrow list only:

- Buy property to rent? (management overhead, not sure I want to get involved in the renting business I don't really understand that well)
- Saving accounts  (expecting more than 2 % of interest these days is stretching it..)
- bitcoins: already bought more than I am comfortable with (invested 8 % of my all savings)
- stock market ? Maybe, but I was looking and looking even into the "blue chip" companies and to really say that "yes, this is better than simply holding cash", is kinda hard, seeing them underperform etc.

How would you convert theoretical 100 000 euros to feel more secure about your financial future ?

Which country are you in? Every economy has its own best options for tax free investment.

And though I'm sure there are plenty of very bright people here, they will tend to be at the battier end of the investment spectrum. I'm no different.




 

[saddambitcoin]

8% of overall net worth in bitcoin seems to be way too conservative for me.

i'm at 95% in BTC right now but i understand that is extreme...i'm aware of the risks.

you should consider upping your BTC holdings to 20-25%

[Harley997]

I know this forum has some bright minds here, so I thought I would ask here.

I realized I have not been very good with my own finances. All my money is simply being kept in banks, which I am sure everyone agrees, is not the smartest idea. Sadly I did not have bright parents to enlighten me on how to manage  finances, so I simply went along through life, lived bellow my means and tried to save some.

Now I realized I want to change it. I don't want cash just sitting there in the bank, when I am sure there are better things to convert it to.

So far I have come up with a very narrow list only:

- Buy property to rent? (management overhead, not sure I want to get involved in the renting business I don't really understand that well)
- Saving accounts  (expecting more than 2 % of interest these days is stretching it..)
- bitcoins: already bought more than I am comfortable with (invested 8 % of my all savings)
- stock market ? Maybe, but I was looking and looking even into the "blue chip" companies and to really say that "yes, this is better than simply holding cash", is kinda hard, seeing them underperform etc.

How would you convert theoretical 100 000 euros to feel more secure about your financial future ?

 

The answer to your question is dependent on the answer to a number of questions that you did not provide answers to.

Probably the most important question is, when do you anticipate on retiring (in relation to today)?

Other questions to ask are: How stable is your job? What is your income? Do you have any debt? Do you have any short term goals like buying a car and/or a house? Do you wish to finance your child's education?

All of the above will help shape the answer to your question. Many financial advisers will at least meet with you for free in the US. I am not sure about Europe (considering you mentioned EUR I assume you are in Europe).

I you have 8% of your assets in BTC now then that is probably as much of your assets you need invested.

[Ron~Popeil]

8% of overall net worth in bitcoin seems to be way too conservative for me.

i'm at 95% in BTC right now but i understand that is extreme...i'm aware of the risks.

you should consider upping your BTC holdings to 20-25%

I am moving in that direction now. Of course for me it is philosophical thing as well as an economic one.

[freebitcoins4u]

one more option to consider: buy gold.

[bangersdad]

how about consider peer to peer lending. have a look at lendingclub.com
and silver is a very good buy imo.

[blatchcorn]

What you should do is simple:
Buy a little more bitcoin while they are cheap
Buy stable stocks with high dividends and a long future (think pharmaceutical firms and supermarkets)
Buy a little of more risky stocks, particularly in the tech sector and biotech sector.  The former sector often has high growth potential and the latter often has high potential to be acquired by big pharmas for patents and expertise.
Buy a little of government bonds to (sort of) hedge against bitcoin
If you don't find enough stocks you like the look of, by a little of commodities.

I reckon something like this looks good:
10% bitcoin
20% stable stocks
10% unstable stocks
10% bonds
10% commodities
40% cash

Once you get comfortable with having less cash, increase holdings in bitcoins and stocks.

[gts476]

silver

[okthen]

What you should do is simple:
Buy a little more bitcoin while they are cheap
Buy stable stocks with high dividends and a long future (think pharmaceutical firms and supermarkets)
Buy a little of more risky stocks, particularly in the tech sector and biotech sector.  The former sector often has high growth potential and the latter often has high potential to be acquired by big pharmas for patents and expertise.
Buy a little of government bonds to (sort of) hedge against bitcoin
If you don't find enough stocks you like the look of, by a little of commodities.

I reckon something like this looks good:
10% bitcoin
20% stable stocks
10% unstable stocks
10% bonds
10% commodities
40% cash

Once you get comfortable with having less cash, increase holdings in bitcoins and stocks.

Such a big percentage for cash?
That's 40.000$ if we're imagining 100.000, and it would devaluate so quickly...

[RoadStress]

30% buy bitcoins, 30% buy mining rigs, 30% properties (apartments)

[Swordsoffreedom]

30% buy bitcoins, 30% buy mining rigs, 30% properties (apartments)

That seems like an interesting balance but should add a note
30% Buying Mining Rigs and then 80% of revenue to reinvesting into the mining rigs to keep up with difficulty increases or to shift the rigs elsewhere.

[findftp]

i'm at 95% in BTC right now but i understand that is extreme...i'm aware of the risks.

Yes, but where did you came from.
It is easy to buy 100 dollars worth of bitcoin in 2010 and now say you have 95% networth in bitcoin.

It is not easy to put several thousands in bitcoin right now and hope for the best because there is much more to loose.

Your initial "investment" was way lower.


If it goes to zero, it only had cost you $100 back then.

[RoadStress]

30% buy bitcoins, 30% buy mining rigs, 30% properties (apartments)

That seems like an interesting balance but should add a note
30% Buying Mining Rigs and then 80% of revenue to reinvesting into the mining rigs to keep up with difficulty increases or to shift the rigs elsewhere.

Well 80% is a bit too much, but I would say at least 50% needed for reinvesting and 50% cash-out for ROI. Mining isn't a "buy and hold" game. It's more like "buy and reinvest" game.

[okthen]

Oh and don't forget to review your investment from time to time.
Otherwise you'll (hopefully) end up with 99% bitcoin, independently of what you invest initially.

(wishful thinking  )