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If you had $2,000,000.00

Discussion in 'Shooting Related Threads' started by andybull, May 8, 2011.

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  1. andybull

    andybull Active Member

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    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. spitter

    spitter Well-Known Member TS Supporters

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    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
     
  3. Setterman

    Setterman Well-Known Member

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    1/2 in good farm ground, and 1/2 in bonds.
     
  4. Fast Oil

    Fast Oil TS Member

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    Andy, I'm available for adoption. The good news is that I will not be going to collage at my age and I'm already married.
     
  5. dhip

    dhip Active Member

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    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.
     
  6. wrzone

    wrzone Member

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    Do not I repeat DO NOT give any of your money to an Insurance co. I am talking from past dealings.
     
  7. grntitan

    grntitan Well-Known Member

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    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. Mark425

    Mark425 TS Member

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    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. andybull

    andybull Active Member

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    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. 635 G

    635 G Well-Known Member

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    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?"
     
  11. shadow

    shadow Active Member

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    Contact Louisville Trust ! They have done a GREAT job for me and my family for over 30 years.
     
  12. Dr.Longshot

    Dr.Longshot Banned Banned

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    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
     
  13. Dr.Longshot

    Dr.Longshot Banned Banned

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    Do not invest in an insurance company annuity under any circumstance.

    Maybe buy some stock in Ford Motor Company, but not $2,000,000 worth.

    Deposit only an amount in a bank that insures the amount deposited, He already knows this I bet.


    Gary Bryant
    Dr.longshot
     
  14. stokinpls

    stokinpls Well-Known Member

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    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. BDodd

    BDodd TS Member

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    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
     
  16. gun1357

    gun1357 Active Member

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    When interest rates start back up, the value of bonds will take a major hit. Do your homework and diversify. Nothing is guaranteed except the fees. Ron
     
  17. BILL GRILL

    BILL GRILL Well-Known Member

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    With that much why can't you just put it in the bank and live comfortably?
     
  18. Chichay

    Chichay TS Supporters TS Supporters

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    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. shotslinger

    shotslinger Member

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    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???
     
  20. CalvinMD

    CalvinMD Well-Known Member

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    Muscle cars..buy low, sell high
     
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