CHF 300,000 in cash, what to do with them?

Investing / Brokers
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Hello,

I have 300,000 in cash after I sold some stocks, any ideas what should I do with them… other than buying stocks?

My original plan was to buy a CHF Money Market Fund to earn a 0.5%, but perharps there is a better way to use the money? Perharps buying some gold? Or for example open a bank account with a new bank and move the money there to benefit from a promotion.

Practically anything is fine other than stocks, including things that are as risky as stocks, as long as they are uncorrelated to stocks and have a positive expected return.

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Bitcoin.

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over what timeframe?

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We have a Managed Futures thread. Might be a bit less straight forward than gold, or bonds.

On the other hand, it seems you are market timing. The best replacement for single stocks is a broadly diversified stocks ETF.

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I would say that it depends what are your objectives with this money. For long term investment, I would tell you to invest securely in a global world ETF like VT which has low TER and correct return arounf 6-8%. If you put it to a bank account. you will probaly suffer from very low interest, banking fee and inflation.

Gold is still a good option to avoid some inflation.

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Is that your total cash?

If so depending on your risk tolerance and time horizon (I‘d just guess it‘s moderate), I‘d build a diversified portfolio from stocks/bonds/other assets.

Something like a modified classic 60/40 could be an idea.

50 stocks 30 bonds 20 managed futures

Stocks: VT (total world stock market),
bonds: GLAC (total world bond market hedged to CHF),
managed futures: DBi managed futures mutual fund (see the topic linked by Helix).

Should do well in most market environments and has a relatively balanced risk profile.

Just as an idea

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For discussion on 300K, I think a good username would have been nice

Just kidding :slight_smile:

To answer your question , if you don’t want stocks, following are some options

  • bonds
  • Gold
  • Real estate funds
  • All of above
  • None of above

It’s all about asset allocation , belief , conviction & risk tolerance

P.S -: I didn’t mention BTC because it’s even more volatile than stocks

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A trip to Las Vegas

With the information you gave us, it’s impossible to have a precise answer. What I’ll do with the money is not important.

It would have been interesting to share your investment ideas and plan.

For example, what are the reasons to switch from stocks to a MMF paying 0.5% year ? Are you already heavily invested in stocks?

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I Buy 2 House in a tax deed sale in US 100K each one.
50K for Upgrade each one and holding costs.
In 6 - 12 months(Rehab or upgrade, clean title), you can sell for 250K each one .
500K - less 5% closing costs
Gross net profit 175K
175K / 22% taxes if C-corp. = 38.500
Net Profit 136500,00 in 6 Months 45% /Year
“Ball park”

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I am already heavily invested in stocks (~500’000), and my marginal tax rate is almost 50%.

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If you’re looking for a low-risk investment, Swiss medium-term notes still have reasonably good interest rates (the current highest offer for a 2-year fixed term is 1.1%).

If you need something liquid, you will currently get more or less the same interest with the highest-yield Swiss savings accounts as you would with CHF-denominated money market funds, but with the added bonus of depositor protection.

Bonds with top credit ratings could be an option as well. An ETF that replicates a bond index is generally the simplest solution for (indirectly) investing in bonds.

I don’t see real estate funds as an alternative to stocks because they invest in stocks (specifically, the stocks of real estate companies). But direct investments in real estate are an alternative (albeit it a relatively risky one).

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Maybe worth considering Pillar 2, Pillar 3a contributions for the tax savings then…

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are those dividends paying stock?