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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?
 
#29 ·
If I had $1,000,000 or any amount and wanted to invest it, there are, generally, 2 strategies worth considering:

First, put the $ into a money market fund (s) or several insured bank accounts or several CDs. This is intended as a short term move while you make a decision on the next 2 recommendations.

1. Interview several FEE ONLY investment counselors. These fellows are not paid based on the value of a portfolio. They charge a fixed fee and you can follow their advice or not. It's up to you to check their references, their track record etc. After the initial counseling, they will do an annual or bi-annual review, again for a fee. Fees for this service are not based on the value of the portfolio - they are based on the time spent, like an attorney.

2. Take the time (maybe up to 1 year) to become your own investment counsel. It's not rocket science. There are several books I could recommend, but here's a website for a guy I've found very helpful. www.bobbrinker.com. He's got a newsletter that you can subscribe to or not (185.00 per year). He's big into people managing their own money and investing in no-load mutual funds. DISCLAIMER: (I am a subscriber but other than that have no affiliation).

I would not, under any circumstances, go to a bank or an insurance company for any kind of annuity or investment advice at the branch level. Comments about huge commissions are right on target. If you walk into some place and announce you have $2,000,000 to invest, it'll be like a shark attack. And the shark will be the one driving the new sports car. Likewise, I would not invest in load funds - it's like paying the fund company for the privilege of investing in their fund. Dumb.

Gene Batchelar
Wheaton, IL
 
#34 ·
How about just putting it in a savings account, and spending $500/day for the rest of his life? The $2M will last 12 years at that rate, and I'll bet he gets tired of spending that much every day long before 12 years passes.

Seriously, that much liquid cash is not really an issue unless you put it all where it can easily be lost.
 
#35 ·
We have a credit union paying 4 & 1/2 per cent on a checking account. A good chunk there for operating capital. (you do need to use a debit card 12X monthly). Part of this can be a CD. You can almost get a living if you put a million here, but I don't like dollar denominated investments.

The remainder, 25 per cent in physical silver. I like one ounce ingots, now worth about 35 bucks apiece, up from 28 in December. 40 per cent in Utility stock or Mutual funds specializing in utilities.

35 per cent in European and other non dollar dividend stocks, avoiding Indonesia and Asian stuff. I like New Zealand, Norway, UK utilities, Sweden and Germany.

I am convinced we will have hyperinflation and a dollar crash. Bernanke and family are stirring up witches brew constantly trying to avoid the bullet, but the debt load of this country has inevitable consequences.

I seriously doubt if the people pushing the buttons will suddenly act responsibly, cutting spending to the bone and funding the debt.

They will most likely try to print their way out of trouble and we the people will suffer. Don't be misled by words like "quantitive easing", that's just another word for printing more money.

Quality rental housing will provide an income for the rest of your life, but that business is not to be taken lightly. Many pitfalls if you wing it. A good management firm could make money for you.

I have a friend who sold out a large quantity of rental units and diverted the money to semi trailers he leases out.

I would not know what to do with that much money in one hunk except as I outlined at the beginning.

Good luck.

HM
 
#37 ·
This may sound stupid... I think I'd start a Buffalo Wild Wings... Only need $1MM in liquid capital for that... Depends on what you want to do every day...

Little bit different strategy than the rest in here... Selling it is the exit strategy...

Before you flame me... The title is what would I do with $2MM...

Thats my slant anyway... Always wanted my own business....

LWL
 
#39 ·
Seek advise from a paid financial planner, avoid those that work for an investment firm. Anuuities sound like the way to go based on the fact that we wants low to no risk investment vehicles. Maybe set things in a Roth type investment makes sense depends on tax brackets and other income. Talk to a tax person as well as a financial planner.
 
#41 ·
i've been in the real estate industry for about 20 years, as a lender. i've seen a lot of ups and downs in real estate values of course as everyone. but i've only seen a couple of comments of investing in realestate. not to be negative, but we're going to be going through another round of foreclosures as these 7yr loans come do, they won't be able to sell or refinance them without a lot of capital injection which most people don't have and they will need to go somewhere, i've been saying this to people for the last 4 +/- yrs, if i had a bunch of money to invest, i'd be snapping up renal homes in various areas, a friend of mine has over 110 last i heard, people that are loosing their homes need somewhere to go, in the northern CA area, rentals are hard to find, then hire a property management company to run them for you, on abver $20-$25 per door or property is what they charge per month. people need somewhere to go, now again, i'm not an expert, but i know i'd be buying 3 bed 2 bath single family homes, up to 4-plexes, 5 units and above is considered commercial finanaing and i'd stay away from that. apartment buildings are usually 10 yr loans and you can refi them, you just end up selling them, stick to the single family up to 4 units, and like someone else said, i wouldn't be looking here for your answer!!!!
 
#44 ·
Keep everything in 4-6 different FDIC insured savings / MM accounts until interest rates go up. Then ladder tax free bonds and TIPS. Interest rates and tax rates will be going up and up for the next decade or so while the stock market languishes like Japan's stock market has for the past 20 years. GW
 
#45 ·
Don't buy houses...invest in food producing cropland not to close to a city (so it won't get rezoned for housing)...we're always going to need food and good land to grow it on...don't know what it sells for where you are but in southern Alberta (Canada) good pivot irrigated land is selling for upwards of $1M per 1/4 section especially if it's good row crop land...
 
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