Hi! I’m new to here and was hoping for an advice where to put my 500k of savings so they’ll work hardest for me. I already opened an account with Nordiska with some amount put on their 3 months saving account (as this feels like it will give me best interest rates plus I’m not keen on locking my savings for 3 years or so on not so much better rates /potential earnings) . ETFs? Good or bad option for a total novice? Getting myself an financial advisor as I’m walking in the dark here with no knowledge and experience? Crypto? (obviously not a large sum to start with and definitely not 500K!!!)
Based on this I assume you might need or have plans for your money in 2-5 years?
If that is the case then most would tell you to keep the majority of your money off the stock market. Banks usually say you should have an investment period of 3-5 years, but if you look at the statistics that period is too short.
I would say that you should keep 50-70% in accounts with interest and the rest you could invest in the broad global investment funds.
However if you tell me that you absolutely need 100% of your money to buy an apartment in 3 years, then keep 100% in accounts with interest.
Getting a financial advisor is a great way to make your 500k work the hardest for someone else (the advisor)
It’s all about risk. Savings account no risk no real return, the word saving says it all. Crypto massive risk possible massive gain/loss. Index funds (or index ETFs) reasonable level of risk for most people and no reason to complicate matters beyond this for the absolute majority. There is no free lunch, meaning for real return you have to take risk. However, risk in an index fund is primarily that it is volatile on a time-scale of say a year or so, i.e. keeping it long enough and the return is historically good.