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If you had $2,000,000.00

8K views 44 replies 38 participants last post by  ljutic73 
#1 ·
I have a friend who is 60 years old, just sold his house, bought a lake home and has 2 million dollars left over that he wants to wisely invest, in order to have some income. He doesn't want to put the money somewhere where he might loose it. I told him that I would not put the money into guns, or the Stock Market. Aside from stashing it under his mattress, what would you do?
 
#2 ·
contact a couple of the larger insurance companies direct and ask about splitting the cash among 2 annuities - one, a fixed accumulating annuity to build funds; the second, an immediate income annuity to generate an income...

If structured properly, the insurance company will invest and build funds, while simultaneously generating an income that he cannot outlive - both with little risk to principal...

respectfully offered,

Jay
 
#5 ·
That's why they have Professional investors,consult one,check around with friends to find a reliable one.They usually only make money when you make money(the better ones).Ohter than that,cds,bonds,etc.,stock market can be risky,at his age,I would just about bet the cds,bonds are the best way.Land is a good investment,however,at his age again,it's reliable but return may be a while coming.As above,I'll accept any donation,BUT,with the exception of I'll guarantee a return each year,Small at times but it will be a return.

Doug H.
 
#7 ·
No offense but your friend was smart enough make it to age 60 and to acquire the $2 million. Why does he now all the sudden need your help? Just curious.

My friends are the last people i let help with my money.
 
#8 ·
If you would like to make 1/2 what the market does and pay 2 times the fees then an annuities are just right for you. It is well know that annuities are a commissioned brokers wildest dream come true.


Seek advise from a professional FEE ONLY advisor (interview 3 at a minimum). At 60, target a reasonable return with asset protection.
 
#9 ·
He's got a grand house with 200 acres, what he needs is income without having to work again. He does have money in the stock market (he thinks a lot of the stock brokers are full of $hiet), the problem is trusting someone with the few Dollars he has left.
 
#10 ·
First rule of thumb, trust no-one with your money but yourself. Get hold of a low fee broker , TDAmeritrade. Diversify, I have 50% in tax-free high quality bonds yielding about 5% tax free. Set them up as a ladder, for income flow if you need it. Put the rest in high quality stocks that pay good dividends. Have the dividends reinvested into the company, compound interest is great.

You lived with out the 2 million before---let it work for you.

And if the CFP's say out great they are, ask them if thery're so smart, "how come they're not retired?"
 
#12 ·
Do not invest in an annuity of any kind, have you ever listened to any of the investment counselors on the radio, this is a rip off, they get their money up front.

I would buy some stock in Ford Motor Company, but not $2,000,000 dollars worth

This would take some talking to wise investment counselors, have to consider his age and what he wants done in his passing.

I would not buy Gold right now as price is dropping.

Gary Bryant
Dr.longshot
 
#14 ·
If you notice your annuity saleman smiles a lot when your dealing with him, there is a reason. He's getting a big fat commission right off the top of your money AND it be at least seven years before you can get your principal back without them nailing you for a substantial penalty. Had a "sister-in-law" who sold those things. She even talked my Dad into cashing out his annuity he had (at age 75) and buying one from her so she could rake in the commission. Never, ever buy an annuity unless it is the only investment vehicle available (like if you work for a non-profit organization and that's all they offer).

Find a financial planner that will advise you as to what to invest in, pay them their fee, then sign yourself up with someone like Vanguard or Fidelity and sit back and spend the the income.
 
#15 ·
I'm with the anti insurance company thoughts; even ING appears to be a good idea for fixed interest but the pay off is pennies. My dad was a stock broker and taught me very little but I rely on a trusted advisor still. My investments through the miserable time has been very fruitful. Find a solid advisor, get educated in the market, and stick it out; don't panic on daily numbers - you don't lose if you don't sell low. If the whole danged country or world goes up in smoke, it won't make any difference where the money is......breakemall
 
#18 ·
If the 2 million is "left over" from the sale of his house, don't let your friend forget there is capital gains tax to be paid (15%) after first deducting his cost basis including improvements, and one-time primary home deduction ($250,000-500,000 if married and filing jointly). Aside from consulting with a very knowledgeable financial advisor, he should be talking to his accountant! Nice problem though. Chichay
 
#19 ·
I often hear people say "do your homework" when talking about investments. That is a pretty huge statement given there are about 15 million companies and about 15 million bond issuances, and 15 million
investment vehicles with common stock, preferred stock, master limited parnerships, etc. Do you want me to go on?? The permutations are seemingly infinite. So when the next genius says "do you homework", ask him/her just what they mean???
 
#22 ·
The first thing i would do is buy another millon or 2 of Iraqy Dinar, it should turn into 4 mill when they revalue their money, i hope it takes place in the next 2-3 months, than i might retire. The four X market has been real good,3rd& 4th quarter did 22%, first quarter this year did 17.18 %, usually do 50-80% a year. Joe
 
#26 ·
Starting a PONZI scheme looks good. With a little luck and good manipulation,they last approx 15+ years. On the serious side,I would take physical posession of gold & silver bullion, up to 30-50% I was able to double my money on silver in less than 1 year. Supply is dwindling,demand is up. Asia is quietly buying tons.Problem was I needed more capital up front. Some risk involved,so do your homework. 1oldtimer
 
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