
Ask HN: What is the best low-risk, passive way to invest 150,000 euros? - valueprop
For USA citizens, the choice is clear: index funds<p>For those living in Europe, what is the best low-risk, passive way to invest 150,000 euros?<p>Option A: conservative funds offered by local banks (90% bonds, 10% stocks for EU companies)
Any specific banks or EU index funds that you recommend? Should EURO be avoided altogether, due to some EU members wanting to leave?<p>Option B: buy 1-2 apartments and rent (too much hassle)<p>See also https:&#x2F;&#x2F;www.quora.com&#x2F;What-is-the-best-way-to-invest-150-000-euros
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ukoki
90% bonds 10% stocks is ridiculously conservative. The person in the question
is only 34 and planning to retire at 50-55. With a 20 year investment horizon
you can have 80% stocks 20% bonds, and have an extremely low chance
historically of not making a profit. ETF providers like Vanguard will sell you
these funds for about 0.2% fee / year (watch out for hidden fees from local
banks, anything over 0.5% is too much).

Personally I stick it all in US index funds and am averaging more than
20%/year over the last five years (although I'm not supposed to look at it).

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forgetsusername
Option A...I guess.

Seems quite bond heavy though. If you have a choice, 60/40 stocks/bonds
(preferably global, equal-weighted vs cap weighted for the stocks to take
advantage of the higher growth of small and mid caps).

Let me say something about Option B: Being a landlord is not passive. There
are many young people here, some who have made some good money, that buy and
rent property. If they describe it as easy it's because they likely haven't
owned the property long enough to have to pay for big maintenance projects, or
long enough to have had bad tenants.

Investments are an efficient machine, and they don't produce easy money. The
long-term real returns on real estate are steady and low. TINSTAAFL. Any
advantages come from being able to leverage a down payment with a mortgage,
which may or may not be possible for a rental property.

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Someone
Define 'best'. What are your goals? For example, if you want to maximize
expected ROI over decades, the answer will be different from the one when you
want to maximize worst-case ROI over a year.

Also, "For USA citizens" isn't disjunct from "For those living in Europe", and
"Europe" is quite diverse (even if one reads it as 'in the EU', tax laws may
affect what's 'best')

Also, avoiding the euro may, depending on what you want to do with the funds,
add exchange rate risks, with their pros and cons (higher variability of ROI).
If you want to spend the money in what now is an euro country, I don't think
there is a way to take exchange rate risks (either because of investing in
other currencies or because of not knowing a possible euro exchange rate)

And I think option B should be disqualified as it doesn't meet your
requirement of 'passive' (you know that, based on the remark 'too much
hassle')

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valueprop
Thanks,

For Citizens in the EU.

While keeping a low risk, what are good options to maximize ROI for a ~5yr
investment? (local bank conservative investment funds have a history of 2% for
previous 3 years)

Thanks

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bsvalley
Short answer to your question, the best option is your Option B.

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sauronlord
Second that.

Ideally buy a triplex or a fourplex and live in one of the units.

Depending on your location... you may be able to break even with 3 units
rented and therefore allowing you to live free for the rest of your life.

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aminozuur
You can invest in US index funds such as the S&P500 as a European. Many people
do. DeGiro is a good broker.

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saltvedt
We have index funds in Europe...

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jklein11
I think they were trying to give you context for tax purposes..

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DarkLinkXXXX
I have to agree with Brian Bain on this one: Perhaps energy is a good place
for you to look. Many solar companies should offer great returns for years to
come and many oil and gas companies will likely be great buys this year as
prices decline more.

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edblarney
"Many solar companies should offer great returns for years to come"

Most solar companies offer abysmal returns. Major US companies have gone bust.
Well run companies can blow up if the government changes policy on subsidies.
In Ontario - the government just decided they would stop paying 82 cents/kw/h
for solar, and dropped it to 50 cents/kw/h. Imagine what that would do to your
balance sheet.

You can make possibly better returns, but it's not remotely 'low risk'.

Getting out of the 3% ROI range is quite hard while not getting into extra
risk.

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id122015
I think Europe is not a great choice. Ask Americans who visited it. And ask
programmers who worked in Europe. Or ask Einstein. You will get the same
answers.

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qwrusz
Why can't those living in Europe also buy index funds? You don't have to be US
citizen to buy them?

There are currency hedged funds if that's an issue for you.

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orasis
Can someone explain why index funds are not an option?

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tkumarb
[https://www.raisin.com](https://www.raisin.com)

Disclaimer: I work there

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scawf
max 1.05% ? wonderful choice

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GFK_of_xmaspast
Are there no professional investment advisors in Europe.

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miguelrochefort
Index funds.

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BjoernKW
ETFs.

