Skip to comments.If you were to invest 1 million?
Posted on 01/11/2014 9:28:42 AM PST by WesternCulture
I am unfortunate to have lost a very dear relative of mine.
Because of this sad occurrence, I have inherited some money.
I will not use them up at bars down in Berlin, Copenhagen and Rome Et cetera, even if this seems like something natural to do.
We all like money, don't we, but honour and family ties matter more than quick thrills.
Instead, I would like to invest in healthy companies.
If you happen to possess some knowledge of American business life that might be of use, pray inform me (- of course, the stock has got to be on the public market).
Better to buy mutual funds. That way you’re not taking a big risk on a single company.
Ruger (RGR). Solid, no debt, expanding.
ARM Holdings plc (ARMH)
You may want to speak with an accountant who specializes in such things.
Divide the money into several piles and diversify. You can get a paid stock picking service for one pile and, depending on your comfort zone, buy only well rated companies at about $10,000 worth for each stock. Cover all the major industries that you like. The problem with buying gold is some companies sell more gold shares than they have gold. It’s better to own the coins, but I’d invest no more than $50,000 and try to buy low. (You’ll need to have a safe, insurance and an alarm system.) I’d also put some of the money into another country and invest it there. You’ll have to figure out which one is safest. I’d prefer Swiss Franks. Go ahead and set aside $100,000 for expenses. That’s not really much, but it will do you no good to invest well and then get run over by a truck.
Best of luck to you.
Unless there is a fundamental change in energy...
Steady, sound, cash worth of a small country
Very difficult to manipulate
Do not try trading for short term gains. Go to the local public library and learn and use the Value Line rating system to pick stocks for long term investing. A dividend reinvestment program is a plus. Alternatively, put your money in a low fee mutual fund that aims to track the overall market.
A million dollars isn’t a lot.
I think I would buy a chunk of primarily farm land and lease it out for farming. Plant a house on a wooded portion.
This is a good starting place: http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338
It is “time tested” common sense advice. For a passive investor, the best strategy is probably to buy conservative NO LOAD mutual funds, denominated in a currency you intend to spend, like Swedish krona. Your decision may be conditioned on tax treatment peculiar to your home country. Talk to a reputable financial adviser, someone recommended by someone whose judgment you trust.
The right answer depends on your investment goals, age, risk tolerance, tax circumstances and country of residence.
ONE INFALLIBLE RULE: If it sounds too good to be true, it is. (too good to be true.) Avoid anyone with schemes that promise pie-in-the-sky returns. There are a lot of Madoff epigones out there.
What you jump into all depends on what you expect to get back out and when. Also it depends on what risk you want to assume. Without knowing more about your expectations, any advice you get is probably not going to help you. If you aren’t sure yourself what you want out of your investment, you probably want a fairly diverse portfolio so you don’t lose it all on your first bad investment.
Gold & silver coins and mining stocks.
I’m sorry for your loss.
Remit the entire sum in US dollars to: Honest Lonesome Investment Services, PO Box 666, Boston, MA, USA. You will receive double your investment by return post in six weeks, guaranteed.
Buy a warehouse of matches and woodburning stoves. When the power goes out, people will need them.
Anything I had left would go into purchasing an interest in companies that produce the essentials like food and fuel.
You might want to wait for the next big drop in the market, though.
I do manage large sums of money, considerably more than a million, for myself and other members of my family. I have been investing in individual stocks for over 20 years, and have had my share of unfavorable results. So that means it can’t go wrong, right? Well, no.
When I design a portfolio for something like this, I would typically lean towards large-cap, dividend-paying stocks to preserve capital and avoid risk. If you don’t need the income, you should also keep at least 10% cash. If, on the other hand, you do need more income, then you would have to take on some degree of risk in the current market, which is very high right now.
A typical portfolio I would design for a $1 million investment would consist of 65% blue-chip dividend payers, 7.5% REITS, 7.5% preferreds, 10% risky high-payers, and 10% cash. I would advise you to take 13 blue-chip positions of $50K each, and pick up 3 to 5 positions in each of the other categories. Yield should be in the neighborhood of 4%.
Two years ago, I could have got you 5% easily, and with less risk.
First off, sorry for your loss.
With that said, to you this should essentially be “found money”. If you can accept a small portion of that wealth being used to pay a professional, you should really speak to an accountant. Just make sure their “rate” does not come anywhere near the rate of return that you will realize from your investments.
Diversify the best you can and ask your investment consultant / accountant to look into automation technologies within the health care field. Regardless of obamacare, the health industry is looking to cut costs to survive and automation (yes it sucks; reduction in human workers) is the key; anywhere from voice to text transcription companies, remote diagnosis and robotics and automated coding software companies. Beyond that, solid robotics companies that google has not purchased yet are a good bet as they really are coming of age (I am not talking startup’s here). I am sure this will be a good thread and as another said, DIVERSIFY!! Thanks for starting it and again, sorry for your loss.
I'm not an expert, but I'd suggest that you follow the Fox Business Channel show, Varney and Co. to get a grasp of how things are changing in the domestic and global markets. It comes on ealry where I live. Stu Varney and Charles Payne bring the intricate job of analyzing stocks down to my level, I like that. I've followed them for a while and made some profit, especially by being disciplined enough to list to them when it's time to sell a stock. They got me interested in two companies recently that are moving steadily for me (CUI Global and Organova). I am trusting them but not recommending anyone do the same.
1. If you have the time and capacity, study on how to invest. Diversification into different asset classes can help, but studying and watching is the best thing to do.
2. You could also go with several different advisers, investing a percentage with each, keeping an eye on each of them.
3. You could use Vanguard funds as an alternate.
In any case, you need to be proactive with your money, things move fast, investing is not for the weak at heart.
I recommend reading the book “The Warren Buffett Way” for some insight into finding healthy companies.
The most important thing, I can’t emphasize enough is: DIVERSIFY, DIVERSIFY, DIVERSIFY and do some research yourself, in addition to advice. The most important thing is preservation of capital — there are too many people out there who will give you advice, which results in commissions for them, and losing ALL your money for you. There is NO rush to invest, it is far better to “miss an opportunity”, than to grab something and lose all your money — I have seen it happen quite often.
Mutual funds of various types: growth stocks, dividend paying stocks, bonds, various combinations.
Real estate — in the area you know — you can buy apartment buildings with a few units (don’t buy large ones, unless you have many millions) or single family houses that you can rent out — buy them in “medium” type areas — not the worst areas, just because they are cheap and not in the most expensive areas, in case they have a price drop. DO NOT, repeat DO NOT get conned at some real estate investment seminar, where they sell you property in areas you aren’t familiar with, haven’t seen — I personally know people who lost their fortunes that way.
Then you can set aside a small fraction — maybe 20-30,000, if we are indeed talking about a million total, and you can play with that — buy individual stocks, if you make money, you will have fun, if not, then you learned that individual stock investing is not for you — but do NOT keep adding to this pot.
Many will tell you to turn your money over to “professional investment advisors” — just think of Madoff. You can get advice from reputable firms, BUT you also have to do your own research and don’t go for the “huge returns” — usually there is something wrong with those.
And do not be in a hurry, missing out on an opportunity is far better, than grabbing one that you think is one and losing all or most of your money.
Just take your time and also don’t start handing out money to everyone, including yourself, because once you start doing it the money goes fast.
I would separate the funds into bins — with a small fraction, emphasis on small to spend on something you want or help our relatives, but this has to be a small finite amount.
You can be financially secure, if you are careful and really follow my above advice, but don’t fall for all the get rich quick advice you will get from everyone coming out of the woodwork, whose interest is not your wellbeing, but their own.
To everyone that has bothered to reply:
- Thanks a lot!
Whether you have money or not all American patriots are most welcome to my corner of the World, Sweden.
We are not all PC idiots.
Many Swedes and other Europeans too strongly believe in Nationalist values.
Best of regards!
Spread it through four different countries.
Currently I would go with US, Canada, Singapore and Chile personally as I don't know enough about Euro Markets to judge.
You might want to go with different countries but spread it out. That way you don't lose everything if things go sideways.
American Balanced Fund
Long term, hide it, or short term, invest it in companies that are profiting in the dispersal of fiat and tax plunder.
Now you tell us you’re European. Investing in the Euro stock markets is an entirely different thing from the US market. They have very different asset classes over there, and different corporate capital structures.
But at least Euro stocks tend to pay out more of their earnings to investors than US stocks. The problem is, that in Sweden you’ll be killed by the taxes, whereas in the US we pay only 15% on stock dividends if we keep our incomes under $200,000.
Even though the must close coal plants they will be replacing them with Natural Gas.
and unless someone comes up with a way to replace electrical power they will be making fat stacks for many years to come...
1. Read post 19 (by proxy_user); the advice is excellent.
2. If you are going to pick blue chip stocks, I would suggest that you take the 30 Dow Industrials or some similar list, and cross off the 15-20 that seem least safe, at most risk of a technology game changer, least stable, worst managed, etc. Buy the remainder of the list. Whatever you buy, review it quarterly, but plan on holding it for a minimum of 5 years. I don’t try to pick the great stock that I can brag about to my friends, just to avoid the bad stocks that will make me cringe in a year. As a result, I have outperformed the broad market by an average of 2.5% over the past two decades.
3. I have found that you can safely withdraw 1% a quarter, essentially forever, either to support yourself or to supplement your budget from other sources. With natural variation, that might mean occasional drops in your quarterly income, but anything unspent from the previous quarter(s) can be used to smooth those out, and with a reasonable return, the balance may rise faster than inflation on average.
Still better yet, invest in ETF's which track certain indexes or market segments. You avoid the single stock risk and avoid the fees charged by the mutual funds.
For example compare "SPY" (which is the symbol for the S & P Composite index) to any mutual funds. There is no load and you can exit at any time.
I have an account at Charles Schwab which provides plenty of research capacity with only a single per trade charge of $8.95.
Other ETF's (electronically traded funds) you might look at are QQQ (Nasdaq index fund), IBB (a biotech fund which has performed well), etc.
Here is a site for getting familiar with ETF's...nasdaq.com/investing/etfs/
People are predicting all kinds of dire things about an imminent crash. Is it wise to invest large in the market right now?
Diversify: maybe 40% in U.S. equities (stocks, ideally held through mutual funds spread over a variety of sectors), 30% in foreign equities (likewise, and spread about equally between Western Europe, developed economies in Australasia and developing markets, with a focus on the BRICs in the last lot), 15% in bonds, 10% in real estate (or maybe vice versa), and the last 5% in precious metals as a hedge.
If you don’t like the mutual funds, go with the same mix and pick your own stock — the mix depends on your risk tolerance, by you should have some in solid companies from which you expect dividends, and some in up-and-comers from which you expect price appreciation. And as someone else wrote, probably don’t put more than $10K in any one stock.
Everybody knows. So how come so many lose at playing the market? Just yesterday I deposited two checks for $0.36 each, dividends for 3 shares of something or other which is what was left of some hot company I had invested in years ago. I’ve done veddy, veddy well with mutual funds on the other hand, have some cash to invest again, and will invest it in... mutual funds.
Follow Mark Twain’s advice and invest in real estate. As he said, “They’re not making any more of it.”
With that much money, you should seek “professional” advice.
Someone you pay a flat fee to set up your plan. Do not go to someone who will charge commission.
The Dave Ramsey web site has a list of counselors.
Invest in FREEREPUBLIC! The minds you save may save you one day.
Look em up...this is where most individual investor money is moving.
Thanks, will check them out!
“I will not use them up at bars down in Berlin, Copenhagen and Rome Et cetera, even if this seems like something natural to do. “
I would. Your friend would have wanted you to enjoy your life. Then again, it’s now your money and invest in companies which have time and time again made money for (me) in the long run: McDonald’s, Samsung and 7-11 are examples..
I would invest it in my own company.
I have come to trust few with my money.
I’m sorry to hear you lost someone dear to you.
I would not make any big decisions, if possible, until after working through grief.
If I, personally, had a million dollars, I would buy farmland and cattle, or real estate, because those are familiar to my family and me.
TVIX (VelocityShares Daily 2x VIX Short Term ETN)It’s at it’s lows. Risky but very easily could grow your money 10 fold quickly when TSHTF economically. Now is the time to invest in it.
There are worse investments. ;-)
With a .076 growth rate in your country, you better invest in babies...
With a .072 in the USA, we should too.
The most reliable way to invest is to diversify with low expense ratio index funds. John Bogle, the founder of The Vanguard Group, pioneered this concept after doing research into the returns from low expense index funds vs. managed mutual funds. A diversified portfolio of index funds provided better returns over time.
Check out Bogleheads - http://www.bogleheads.org/. They are a very knowledgeable group of investors who follow John Bogle’s advice. There is an excellent wiki at the site along with a forum populated with very bright investors. The fellow investors on the forum are very quick to help anyone posting questions.
Whatever portion you may decide to invest in stocks (and I would diversify across a number of asset classes) do not commit more than 5% to any one security and choose those that have consistently paid increasing dividends and paid down debts. Also use trailing stop losses (I use 25%) to limit the loss of capital in a down market. Safety is the watchword, in my view.
You can get a nice 5% or so return in a nicely conservative portfolio. I too take the tortoise approach rather than the hare... slow and easy, looking for a nice solid long-term gain.
There are plenty of good companies out there that will pay around 5% in dividends, and there are some great mutual funds (pay attention to the fine print regarding "load" if you don't plan to hold them for long-term).
If you have the stomach for it, it makes sense to have a portion of your holdings in real estate. Take your time when investing in real estate... don't go for "flipping" unless you're an experienced contractor. Calculate what your return will be from rents, after deducting for taxes, insurance, utilities, maintenance and at least some vacancies. If you can realize a good 5-10% return from rents, and can buy in an are that's on the upswing, than it can be a great investment.
Money managers/brokers don't do any better than you can do if you do your research. At least that's been my experience (I have portfolios with SWS and JP Morgan, and the portfolio I manage myself is doing a lot better than they're doing).
Use common sense and listen to your gut... if your gut says something sounds fishy, just say no. You'll get a zillion email "tips" from the "experts"... many of whom are just trying to save their own sorry positions by convincing you to buy the turkeys they got suckered into buying.
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