Lex said:
Why not just buy an all-world ETF like VT?
Forget VT, go all-in on BTC. Bitcoin is the future.
Let’s not start with Bitcoin again. Charlie Munger was right—it’s rat poison.
Before doing anything risky, remember the Intel Grandma from WSB.
Sorry for your loss. Most people will recommend SPY or VOO, which is smart, but I’d also suggest doing something small in honor of the person who left you this inheritance. Maybe invest $1,000 in a stock they would have liked. The rest can go into ETFs for stability.
If you want to take some risks, put a small portion into Bitcoin or a leveraged ETF like FNGU during a bull run. Just be careful and keep the majority of your money in safer investments.
Just stick with MSCI World. Emerging markets are volatile and often underperform in the long run due to huge drawdowns. If your investment drops 50%, you’ll need a 100% gain just to break even. MSCI World is a safer option and already has U.S. exposure.
At 20, you probably have some major expenses ahead, like a car or a home. If that’s the case, consider keeping part of the money in a high-yield savings account to avoid going into debt for these purchases.
You can always invest the rest in the market, but make sure you don’t put yourself in a position where you’re stuck with high-interest loans.
@Addison
Student loans aren’t a big issue in Europe. The system is very different compared to the U.S.
The S&P 500 gives you international exposure since many of the companies operate globally. It’s a solid choice for diversification.
There’s really only one market that matters: the U.S.
You need to consider valuations. Europe is cheaper than the U.S., so returns could be higher if the multiples expand. Efficient markets already price in everything you’ve mentioned, so keep that in mind.
If I were you, I’d just stick with a mix of S&P 500 and MSCI World. Keep it simple and let the money grow.