HACKER Q&A
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What would you do with 50'000 Euro in my situation?


I'm a mid-30s German guy. I just broke up with my g/f after 10 years of relationship. I quit my job. And I'm about to leave my appartment behind. I have 40'000 Euro cash and 60'000 Euro in ETFs/stocks.

I'm wondering what really smart people who know a thing or two about business would do with say 50'000 Euro in my situation. And when I look for smart people online I tend to check out hacker news. How could I invest it in a way that symbiotically connects with starting a "new" life? 50k or even 100k is nowadays an amount that's on one hand a lot of money but on the other hand not enough to buy anything really significant. I mean there are houses for 50k but I'd have to invest a lot of money to renovate etc and they'd be in the middle of nowhere which comes with further costs. So - yeah, I don't know.

Let's consider it a thought experiment. You get an opportunity (or just thrown into that situation) to start from an almost blank slate and you have 50k and no debts. What would you do?


  👤 duffyjp Accepted Answer ✓
Having been in a similar situation personally, I'd suggest not doing the most pragmatic thing possible which is what I chose. That money will mean nothing in 20 years, but what you choose to do now will. Plan an adventure, take a chance, go somewhere you never pictured yourself.

Ask any older guy, they'll either say they wished they had-- or they'll have great stories from when they did.


👤 mtmail
Since you're from Germany have a look at the German https://www.reddit.com/r/Finanzen/ Questions like "I inherited 100k, what should I do now" are common.

My suggestion is backpacking around the world.


👤 legalcorrection
>I have 40'000 Euro cash and 60'000 Euro in ETFs/stocks.

Leave it there, try not to spend it, and try to get a higher paying job.

The only thing I'd suggest is that, depending on what your personal safety net looks like (if you hit 0, can you live with your parents?), you put the 40k into ETFs/stocks too instead of just cash.


👤 caffeine
> I'm a mid-30s German guy. I just broke up with my g/f after 10 years of relationship. I quit my job. And I'm about to leave my appartment behind. I have 40'000 Euro cash and 60'000 Euro in ETFs/stocks.

Just wondering - Why did you quit the job and the apartment?


👤 keiferski
Are there any business projects that you'd like to launch? Or maybe some educational topic or skill that you'd like to master? 50k euros is enough money to live on for 2-5+ years, depending on where you want to go. If you make a plan with specific objectives, that's enough time to become really good at just about anything and/or launch your project.

Personally, I'd look into Serbia, Montenegro, Turkey, Morocco, Albania, rural Spain, southern Italy, Romania, or Bulgaria. You can live comfortably on 1,000 euros a month in these countries, which gives you 4+ years of runway.


👤 searchableguy
Depends on your risk appetite, age, and responsibilities. It's going to be a different answer for all of us.

I will put all of it into investing in myself. Maybe I could take some time off to focus on learning something that I always wanted and can earn huge income from or perhaps start a more risky endeavor such as a business.

To maximize the utility of 50K, I would move to a well connected but cheaper cost of living country.

In the end, what do you want to do? Do you want to use this opportunity to increase your potential to earn more or do you need a break to get back on track?

Are you enjoying life currently?


👤 matt_s
One thing that piqued my interest is stock market trading. I'm not referring to buying and holding - that's called investing and you're already doing that. I'm referring to more complex trading scenarios that use options contracts as hedging, typically around a companies earnings report date. Usually you need about that amount of money ($25k+) to get started because you will be on a margin account. You would need to do significant research to understand the mechanics, how to setup trades, etc. to minimize risk. From what I understand it doesn't have to be a full-time all day, every day type of hours. And it doesn't matter if it is a bull or bear market, stocks are always moving somewhere.

An example could be to take a position using options contracts around a companies earnings release thinking the stock will go up (because you've researched it, not guessing) and hedging so losses are minimal in case you're wrong. This might mean a company is say at $90/share and you think it will go up to $105 so you get options contracts for $105 and contracts at $85 in case it falls. I've only skimmed the surface of how this works since I have limited knowledge but that is the gist of it. There is a lot more detail involved with put vs call contracts and buying vs selling them and how the options greeks impact pricing, etc. There are tools out there that let you understand better the risk at different stock prices/options using statistical models.

Obviously if you don't have interest or don't fully understand how these work you could turn your 50k to 0k rather quickly.


👤 aynyc
>You get an opportunity (or just thrown into that situation) to start from an almost blank slate and you have 50k and no debts. What would you do?

Under normal circumstances (Covid restriction and war and such), I would travel. I did some stupid shit (wasting money, etc) in my 20s, but traveling was the one thing I don't regret at all. Meeting new people in new places is about as symbolic as it gets to starting "new" life.

If you insist on investing, I would leave the money as it is.


👤 trifit
Move to an area with low burn (ex: Thailand) get a remote job. Keep investing. Retire early?

👤 durnygbur
Had been in similar position months before outbreak of pandemic, completed the move out and German paperwork on February 2020. This is an awkward amount of money. Staying in Germany will burn at least 1-1.5k EUR monthly in rent, rundfunk, health insurance, etc. Ended up in place inherited from grandparents back in Poland. Lockdowns efficiently cooled down remorse caused by doing nothing.

👤 tigerlily
What to do in your situation… hmm. Well, you’re right, 50000 odd euros is a nuisance. Not enough to retire on, too much to spend frivolously.

Now for my advice. The fastest way to become a thousandaire is to start as a ten-thousandaire. Keep the money out of your mind for a bit, and figure out what you want out of life next. Once you know, then go think about the money.


👤 gadders
Buy a house/airbnb and rent it out.

👤 bobkrusty
buy farmland is surest way to survive. :) if you want organize a business in indonesia i can help you with that. you are rich here since you use euro.