▷ How and where to invest €100,000 in 2019
Posted: Thu Dec 12, 2024 3:10 am
Investing 100,000 in 2019 can be a difficult decision. The stock markets in 2018 have returned to their “normal” state , remembering that they are called “variable income” for a reason. In addition, fixed income has not been a refuge either: the forecast that rates in the US will continue to rise, and consequently also in Europe, may cause falls in fixed income in the short term.
As can be seen from the graph, a phase of anxiety can be perceived at the end of 2018.
Before investing €100,000, create a security account
Before investing an amount as large as €100,000, it is vital to set up a savings account (or safety fund). This measure should allow us to survive for 2 or 3 years without new income.
Are you planning to invest 100,000 euros? Set your priorities and time horizon
When investing 100,000 euros, it is very important to have a clear time horizon. When do we plan to withdraw the invested capital? In 5, 10, 20 years…? Remember that it makes no sense to invest without a minimum medium- or long-term vision. Only in this way can we overcome the pernicious psychological cycle of the average investor.
Having a clear time horizon will allow us to avoid falling into the emotions of our financial psychology, and making the worst mistake: selling cheap and buying expensive. That said, let's see how and where to invest 100,000 euros in 2019.
conservative or decisive inverter
How to feel comfortable investing 100,000 euros?
Knowing and establishing your priorities as an investor is vital to being comfortable once we have started investing. Our proposal is, before investing, to take into account the following 6 aspects:
How and where to invest 100,000 euros pyramid investment
1 – Know your needs. To do this, it is important to know your investor profile. The expected long-term return can vary from 1% to 7.5% depending on the volatility, or risk, you are willing to take. You can see an approximation of this combination of factors in our profitability simulator. You should also establish a plan, that is, “when and how much” to invest. However, if you find it difficult to establish your plan, remember that the best plan will be one that you can maintain over time.
2 – Know your investment psychology. Will we get nervous when the markets fall? Will we sell hastily? If we believe that we do not have good financial psychology, and this can play a trick on us in times of falls, it is best to go to an expert or service that manages our investments. Perhaps you might be interested in reading How to control my emotions when investing ?
3 – Decide on your asset allocation. Take the time to learn about the different assets you can invest in and establish an optimal asset allocation, adapted to your priorities and investor profile.
4 – Look for the lowest management, custodian and trading costs. It is vital to optimize our costs so that profitability is not diluted by fees. But be careful! Many investment services hide costs, both implicit and explicit. If you wish, you can see how to calculate the total cost of a portfolio .
5 – Once we know the optimal distribution for chinese overseas canada database our profile, we must choose the composition, that is, which assets meet the optimization requirements of our portfolio at the best possible cost.
6 – And finally, optimize your taxes. Find out about the tax savings possibilities in your country. But don’t make the mistake of putting this factor at the beginning of your decision. In Spain, a fairly common mistake is to talk about zero taxation of investment funds, an asset class that is not as efficient as ETFs or indexed investment funds.
How and where to invest 100,000 euros in 2019, the sooner the better?
Savers often wait for the perfect moment to invest, trying to get the market timing right. However, statistics show that, although this is not always the case, in general the sooner we invest, the better .
If we are not sure when the best time to start investing will be, we can start investing little by little, in a planned way, scheduling recurring contributions that will diversify the moment of entry into the markets. You may find the post Is now a good time to invest interesting .
In any case, the graph below illustrates that when is more important than how much when talking about how and where to invest 100,000 euros:
where to invest 100000 euros - compound interest
As we can see in the graph, if you wait 10 years to start investing, you will have to double the amount you were going to invest before those 10 years to accumulate the same amount of capital. That is, if a person starts investing €5,000 at 30 years old, they will accumulate the same amount as another person starting at 40 years old (only 10 years later). Therefore, the latter will have to double the amount to invest, that is, €10,000 per year to accumulate a similar amount at 70 years old.
In conclusion, when we have a safety net covered (our expenses for the next 2 or 3 years), it is best to make the magic law of compound interest work for you and start as soon as possible. Remember that time is on your side.
How and where to invest 100,000 euros in 2019: my financial goals
What do I do if I am not clear about my financial plan or goals? One possible solution is to divide our financial life into different possible goals.
How and where to invest 100,000 euros with goals
– Security fund : before investing, we recommend having two security funds. In the first security fund (security fund I) with enough liquidity to cover our needs in a short period of time, between 1 or 2 years. Apart from having security fund I, it can be very helpful to invest in a second fund (security fund II) with savings that allow us to cover needs for a longer period of time (more than 2-3 years) because it will protect us from the risk of inflation.
– Major purchase : if you want to make a large purchase in a certain time. For example, a car, a property, etc.
– Retirement : it is a way to supplement retirement and, in the future, have greater peace of mind. This objective is designed for the long term if you start early. That is, it is indicated for a period of time of 10 years, after which you can take the maximum risks and bet on high returns.
– Accumulate capital : this option is perfect for when there is no clear objective.
Following this recommendation can be of great help to our financial life.
How and where to invest 100,000 euros in 2019: our proposal
Our proposal for most investors is the following: for the standard investor it will be much better to invest €100,000 in a simple but efficient way, using the increasingly popular ETFs (Exchanged Trade Funds) and not with complex or inefficient alternatives such as traditional investment funds.
Index funds are a great way to build ETF portfolios. With them, you can easily achieve the 6 aspects mentioned above. On our YouTube channel we explain what ETFs are . Your bank probably won't offer you to invest with them, why? Read this post and find out why.
At inbestMe, ETFs allow us to create very well distributed portfolios, allowing us access to any type of asset. In addition, we achieve all this with minimal costs, which guarantees greater profitability for the investor's pocket. If you want to invest on your own and have never done so, you can see here how to get started. Make sure you have a minimum of knowledge, but above all the appropriate financial psychology and time. Remember that in general we fail as investors.
Starting at €100,000, you can choose from all the options that allow our high level of customization, combining up to 11 risk profiles, 2 currencies (Euro and Dollar) with various types of plans:
inbestMe Highly automated standard
distribution and long-term strategic vision
very high diversification
minimum market costs
75% below traditional services.
inbestMe Dynamic
access the best of inbestMe Standard with management by our investment committee
your plan adapts to market developments.
inbestMe Advanced
access a socially responsible investment package
and fully customize your portfolio starting at €100,000.
inbestMe Plus , starting at €100,000,
initial study of your portfolio.
Personalised manager who will assist you throughout the entire process.
If you want to invest in a highly diversified portfolio (with around 15,000 assets from around the world) and have a committee of expert investors take care of your investment assisted by quantum algorithms, start by knowing your investor profile , we will do everything else for you.
As can be seen from the graph, a phase of anxiety can be perceived at the end of 2018.
Before investing €100,000, create a security account
Before investing an amount as large as €100,000, it is vital to set up a savings account (or safety fund). This measure should allow us to survive for 2 or 3 years without new income.
Are you planning to invest 100,000 euros? Set your priorities and time horizon
When investing 100,000 euros, it is very important to have a clear time horizon. When do we plan to withdraw the invested capital? In 5, 10, 20 years…? Remember that it makes no sense to invest without a minimum medium- or long-term vision. Only in this way can we overcome the pernicious psychological cycle of the average investor.
Having a clear time horizon will allow us to avoid falling into the emotions of our financial psychology, and making the worst mistake: selling cheap and buying expensive. That said, let's see how and where to invest 100,000 euros in 2019.
conservative or decisive inverter
How to feel comfortable investing 100,000 euros?
Knowing and establishing your priorities as an investor is vital to being comfortable once we have started investing. Our proposal is, before investing, to take into account the following 6 aspects:
How and where to invest 100,000 euros pyramid investment
1 – Know your needs. To do this, it is important to know your investor profile. The expected long-term return can vary from 1% to 7.5% depending on the volatility, or risk, you are willing to take. You can see an approximation of this combination of factors in our profitability simulator. You should also establish a plan, that is, “when and how much” to invest. However, if you find it difficult to establish your plan, remember that the best plan will be one that you can maintain over time.
2 – Know your investment psychology. Will we get nervous when the markets fall? Will we sell hastily? If we believe that we do not have good financial psychology, and this can play a trick on us in times of falls, it is best to go to an expert or service that manages our investments. Perhaps you might be interested in reading How to control my emotions when investing ?
3 – Decide on your asset allocation. Take the time to learn about the different assets you can invest in and establish an optimal asset allocation, adapted to your priorities and investor profile.
4 – Look for the lowest management, custodian and trading costs. It is vital to optimize our costs so that profitability is not diluted by fees. But be careful! Many investment services hide costs, both implicit and explicit. If you wish, you can see how to calculate the total cost of a portfolio .
5 – Once we know the optimal distribution for chinese overseas canada database our profile, we must choose the composition, that is, which assets meet the optimization requirements of our portfolio at the best possible cost.
6 – And finally, optimize your taxes. Find out about the tax savings possibilities in your country. But don’t make the mistake of putting this factor at the beginning of your decision. In Spain, a fairly common mistake is to talk about zero taxation of investment funds, an asset class that is not as efficient as ETFs or indexed investment funds.
How and where to invest 100,000 euros in 2019, the sooner the better?
Savers often wait for the perfect moment to invest, trying to get the market timing right. However, statistics show that, although this is not always the case, in general the sooner we invest, the better .
If we are not sure when the best time to start investing will be, we can start investing little by little, in a planned way, scheduling recurring contributions that will diversify the moment of entry into the markets. You may find the post Is now a good time to invest interesting .
In any case, the graph below illustrates that when is more important than how much when talking about how and where to invest 100,000 euros:
where to invest 100000 euros - compound interest
As we can see in the graph, if you wait 10 years to start investing, you will have to double the amount you were going to invest before those 10 years to accumulate the same amount of capital. That is, if a person starts investing €5,000 at 30 years old, they will accumulate the same amount as another person starting at 40 years old (only 10 years later). Therefore, the latter will have to double the amount to invest, that is, €10,000 per year to accumulate a similar amount at 70 years old.
In conclusion, when we have a safety net covered (our expenses for the next 2 or 3 years), it is best to make the magic law of compound interest work for you and start as soon as possible. Remember that time is on your side.
How and where to invest 100,000 euros in 2019: my financial goals
What do I do if I am not clear about my financial plan or goals? One possible solution is to divide our financial life into different possible goals.
How and where to invest 100,000 euros with goals
– Security fund : before investing, we recommend having two security funds. In the first security fund (security fund I) with enough liquidity to cover our needs in a short period of time, between 1 or 2 years. Apart from having security fund I, it can be very helpful to invest in a second fund (security fund II) with savings that allow us to cover needs for a longer period of time (more than 2-3 years) because it will protect us from the risk of inflation.
– Major purchase : if you want to make a large purchase in a certain time. For example, a car, a property, etc.
– Retirement : it is a way to supplement retirement and, in the future, have greater peace of mind. This objective is designed for the long term if you start early. That is, it is indicated for a period of time of 10 years, after which you can take the maximum risks and bet on high returns.
– Accumulate capital : this option is perfect for when there is no clear objective.
Following this recommendation can be of great help to our financial life.
How and where to invest 100,000 euros in 2019: our proposal
Our proposal for most investors is the following: for the standard investor it will be much better to invest €100,000 in a simple but efficient way, using the increasingly popular ETFs (Exchanged Trade Funds) and not with complex or inefficient alternatives such as traditional investment funds.
Index funds are a great way to build ETF portfolios. With them, you can easily achieve the 6 aspects mentioned above. On our YouTube channel we explain what ETFs are . Your bank probably won't offer you to invest with them, why? Read this post and find out why.
At inbestMe, ETFs allow us to create very well distributed portfolios, allowing us access to any type of asset. In addition, we achieve all this with minimal costs, which guarantees greater profitability for the investor's pocket. If you want to invest on your own and have never done so, you can see here how to get started. Make sure you have a minimum of knowledge, but above all the appropriate financial psychology and time. Remember that in general we fail as investors.
Starting at €100,000, you can choose from all the options that allow our high level of customization, combining up to 11 risk profiles, 2 currencies (Euro and Dollar) with various types of plans:
inbestMe Highly automated standard
distribution and long-term strategic vision
very high diversification
minimum market costs
75% below traditional services.
inbestMe Dynamic
access the best of inbestMe Standard with management by our investment committee
your plan adapts to market developments.
inbestMe Advanced
access a socially responsible investment package
and fully customize your portfolio starting at €100,000.
inbestMe Plus , starting at €100,000,
initial study of your portfolio.
Personalised manager who will assist you throughout the entire process.
If you want to invest in a highly diversified portfolio (with around 15,000 assets from around the world) and have a committee of expert investors take care of your investment assisted by quantum algorithms, start by knowing your investor profile , we will do everything else for you.