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  • FIRST POST
    • RobertOfEurope
    • By RobertOfEurope 20th Jul 19, 8:52 AM
    • 2Posts
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    RobertOfEurope
    Inherited 100k: how should I invest it?
    • #1
    • 20th Jul 19, 8:52 AM
    Inherited 100k: how should I invest it? 20th Jul 19 at 8:52 AM
    I am in the rather odd position of having inherited a large sum of money and no knowing how to invest it.

    I was fortunate to inherit a bit more than 100k from the sale of a relations property. I used a bit of it to pay of my remaining student debt. And I do not have a mortgage.

    I am British but I live in another EU country. This means I cannot use UK investment and savings products with my high street bank as I am not UK resident or a tax payer.

    Can anyone advise? How should an expat like myself handle their savings and investments?
Page 1
    • xylophone
    • By xylophone 20th Jul 19, 9:11 AM
    • 30,624 Posts
    • 18,861 Thanks
    xylophone
    • #2
    • 20th Jul 19, 9:11 AM
    • #2
    • 20th Jul 19, 9:11 AM
    Do you intend to remain abroad or is your plan to return to the UK?

    NS&I might be a possibility in the short term while you explore your options.

    https://www.nsandi.com/i-live-outside-uk-can-i-invest-with-nsi
    • Voyager2002
    • By Voyager2002 20th Jul 19, 10:01 AM
    • 13,239 Posts
    • 9,109 Thanks
    Voyager2002
    • #3
    • 20th Jul 19, 10:01 AM
    • #3
    • 20th Jul 19, 10:01 AM
    Which country? Most or all EU countries have a financial services sector, with investment products available to all investors.The major investment houses (Fidelity is the name that springs to mind) would have offices in most countries.


    There are some brokers who aim to serve expatriates: the one that I formerly used was internaxx, although they are now rather expensive.


    In any case, your high street bank is generally not a good choice.
    • RobertOfEurope
    • By RobertOfEurope 20th Jul 19, 6:59 PM
    • 2 Posts
    • 0 Thanks
    RobertOfEurope
    • #4
    • 20th Jul 19, 6:59 PM
    • #4
    • 20th Jul 19, 6:59 PM
    I plan on staying where I am and not returning permanently to the UK. I live in Sweden and have done for six years now.

    Indeed, my UK high street bank looks like they don't cater to expats in situations like mine.
    • xylophone
    • By xylophone 20th Jul 19, 7:45 PM
    • 30,624 Posts
    • 18,861 Thanks
    xylophone
    • #5
    • 20th Jul 19, 7:45 PM
    • #5
    • 20th Jul 19, 7:45 PM
    Why not transfer the cash to your Swedish account and invest/save in Sweden?

    https://eatingouridentities.com/2018/07/23/short-term-investing-sweden/
    • to jackie too
    • By to jackie too 21st Jul 19, 2:46 PM
    • 22 Posts
    • 29 Thanks
    to jackie too
    • #6
    • 21st Jul 19, 2:46 PM
    • #6
    • 21st Jul 19, 2:46 PM
    Why not transfer the cash to your Swedish account and invest/save in Sweden?
    Originally posted by xylophone
    I wouldn't rely too much on that blog. It mentions:

    - one place to hold cash in Sweden. This may well be useful.

    - a variety of P2P platforms. It doesn't say nearly enough about the risks of P2P. P2P is neither a mainstream investment, nor something similar to a savings account which happens to pay more interest. At best, it's a niche investment which you might choose to hold a little of alongside mainstream investments or you might avoid it altogether (which is what I'm doing).

    - one place to hold mainstream investments. But it says nothing about the costs involved, or the range of investments on offer.

    It may be worth investigating that mainstream investment option, to find out what it covers, with what costs. However, with the relatively large amount you have to invest, the chances are that you'd do better with Interactive Brokers (interactivebrokers.com). This is a large US-based investment platform, which is happy to accept customers in many countries.

    Their platform looks very complicated. However, you'd only need to figure out how to do one or two things on it. The aim would be to put you cash into 1 or 2 ETFs (ones traded on London or other European stock exchanges, not US ETFs). IB has very low charges for buying/selling shares (including ETFs), and for currency conversion (if required and they also let you hold currency in several different currencies). When not buying/selling, they have a minimum charge of $10 per month, which is waived for accounts worth over $100,000 so you might avoid this, but in any case, it's not much to pay for an account worth a decent 5-figure sum.

    Which ETFs would you buy? At its simplest, you might buy 1 global equities tracker, and 1 global aggregate bonds tracker. For instance, if you put 60% of your capital in the equities ETF, and the other 40% in the bonds ETF, that would give you something broadly similar what UK-based investors who hold Vanguard Lifestrategy 60% Fund have.

    The usual idea is to hold an equities ETF which doesn't use currency hedging, and a bond ETF hedged to your home currency; however, I'm not sure whether bond ETFs hedged to the swedish kroner are available; alternatives that are available include: hedged to the euro, hedged to sterling, and unhedged (giving you a mixture of major global currencies).

    ETFs are available as either "distributing" (which pays some income each year which you may then choose to reinvest) or "accumulating" (which automatically reinvests it). Which is better for you may depend on how Sweden taxes income from ETFs, which I don't know. Do they tax you each year on the income automatically reinvested in accumulating ETFs (as the UK does, for instance), though you haven't received it in cash?
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