How To Invest 2 Million Dollars Serious Advice needed

DiscountGuy · January 10, 2006 3:45AM

Hi I know this is off base and not bragging about my net worth, but people buying rare coins, investing in gold etc,etc. Here's my question I had to retire about 10 years ago due to a serious back injury so the money I got from my settlement and saving through my life I bought 4 homes, I live in one, another one is a beach/vacation gettaway and the other 2 I rent to family members, $500k investment back 11 years ago has netted me to over 2+ million in assets if I sold today, and furthermore, I am being taxed out because of the housing boom. I don't know nothing about stocks,just stocks I own from a huge retail giant in my area that I worked for and was given to me as part of my salary and bonuses, other than that, how can you make 2 million dollars payoff per year in $$$ to live on but not lose any net to the stock market gamble. Some one told me the other day Im a millionare, I said I am still who I am and don't want to live like the jones, because I know where I came from. Anyone have solid advice how to invest this money when I sell all of my properties?

dlimb2 · January 10, 2006 3:49AM

Buy CD's and you will never have to worry about loss...and you will have an monthly income.

jpkinla · January 10, 2006 3:51AM

Just be very careful and remember that the preservation of your buying power is as important as the preservation of your capital.....I do not believe any long term fixed income assets are good at this time.....Get a lot of opinions and base your decision on your monthly needs and the possibility of you needing part/all of those funds.....A mix of gold, dividend paying stocks, 1 year CD's and 3 year CD's is probably in your best interest especially if stocks scare you or you haven't been successful at stocks....Just be very careful! Good luck!

Coinosaurus · January 10, 2006 3:54AM

Hire a good financial advisor. If you take advice off a chat board, expect to get what you pay for

Cladiator · January 10, 2006 3:55AM

<< Hire a good financial advisor. If you take advice off a chat board, expect to get what you pay for

>>

pharmer · January 10, 2006 3:56AM

I would love to see how many pm's you're going to get, and from whom

You are aware there are coin dealers here, right? Do you understand how they make money? Alrighty then, everyone is going to be happy, winners all around

Oh, and another bit of good luck for you, if you later decide you've been ripped off, you can easily get in touch with the NCA via this forum. It's a not for profit group of coin dealers who go after for profit coin dealers. If by chance the dealer who ripped you off answers the phone at NCA, hang up and try again later.

ARCO · January 10, 2006 4:00AM

This probably isn't the best forum for investment advice. If you are looking at a sum in the $1M - $2M range you would be wise to seek out a professional. First thing I would do is call a good mutual fund company and speak to one of their high net worth representatives, or, ask around and find someone qualified and trustworthy to offer advice and investing strategies.

As for numismatics or coins as part of your investment strategy...that I would put off for a good while. $2M invested wisely could provide a very healthy monthly income. With that income you could buy coins and enjoy numismatics first as a collector, and then perhaps down the road...with a long history and a lot of experience, you could make a more informed decision if rare coins would make up part of a balanced investment strategy.

Tyler

millennium · January 10, 2006 4:01AM

I have some beachfront property in Arizona.............

NA.Just kidding!...Get a GOOD financial advisor..it will be money WELL spent...also collect a few coins too it's a GREAT hobby!

clw54 · January 10, 2006 4:01AM

You're in an enviable position of being able to put together a great collection. Simply collect the coins you enjoy. They might increase in value, they might decrease a little. Either way you'll gain a lot of pleasure in having them.

ldhair · January 10, 2006 4:02AM

So you don't have to pay taxes on the gain if you sell the property?
I know you can do an exchange for other property but didn't know you could put it into other investments.

cho10 · January 10, 2006 4:03AM

<< Hire a good financial advisor. If you take advice off a chat board, expect to get what you pay for

>>

This is true but if you truly are worried then, prior to hiring a financial advisor, do a back gorund check or at least check his references. A D-U-N-S reference (Dunn & Bradstreet) can also help at least find out who you are dealing with.

Good luck.

topstuf · January 10, 2006 4:03AM

Selling ALL of your properties? Even the house you're LIVING in?

PerryHall · January 10, 2006 4:04AM

Be very careful. Six months from now I don't want to have to read that the "Coin Possey" had to rescue you.

Leodinus · January 10, 2006 4:05AM

I got this really shiny penny

.

As has been said before. Get an advisor. The stock market is iffy, so I'd only invest a small portion (maybe 5%) in it. Coins is another thing you might want to do to diversify (maybe another 5%), but the rest you need professional help with. Their entire job is to take your money and make more from it

.

--Cory

JDelage · January 10, 2006 4:06AM

go to Vanguard and invest in several index funds - total stock market, mutual bonds, etc.

ellewood · January 10, 2006 4:08AM

I would ask family and friends around you for recommendations on a financial advisor or broker. I would NOT sink my $$$$ into coins as an investment. Like someone said above, you will get advice here that could be detrimental to your WEALTH.

DiscountGuy · January 10, 2006 4:10AM

<< Selling ALL of your properties? Even the house you're LIVING in? >>

In the process of building in Cape Coral florida, yea I know thats not smart, but hell its warm and I need to get out of the Washington DC/ Maryland Suburbs, to expensive for my blood. All of my tax assessments are going up 157% in the next 3 years. I think I will talk to a financial planner but I have heard they can take you to the bank also?

BigBen · January 10, 2006 4:12AM

Always remember to BUY LOW in whatever you invest in! Don't buy coins, precious metals, stocks, etc. if they have already been valued high, because if the markey shifts, you LOSE big time. If you do buy precious metals, only make them a SMALL part of your portfolio or else you'll risk losing your shirt, and always buy American Eagles because they are easy to sell and command a higher price than scrap gold. Another consideration is land, diversified with coins. You should study trends in certain coins' values and compare them with current market forces, i.e. falling dollar, rising inflation, etc. Carson City Morgans and St.Gaudens have done very well, and so have certain State Quarter-era modern Mint products. Some of the Mint products have had returns of 1,000% in just a year! As always, DIVERSIFY!

I'm available for hire

lol

BigBen

coynclecter · January 10, 2006 4:12AM

I agree that you need to hire an advisor but look for his ADVICE, don't give him your money to invest.

A) The key is diversification.........otherwise known as "don't put all you're eggs in one basket." This way you should be able to do OK not matter what happens in the economy. If one area goes down, another goes up.

B)Think about putting some money elsewhere, a "respectable" foreign bank or investment house would do well.

C) Assume that inflation will continue over the long, it's been that way for 100 years.

D) If an investment return seems too good to be true, it probable is. Beware of scams.

fishcooker · January 10, 2006 4:16AM

I'm not sure that a financial advisor is the best path. Perhaps a business & tax advisor would be better. You may be better off with the assets inside a business that pays dividends to you rather than income - I am speculating at this point but there maybe something of interest in this ballpark.

Does FL have a "wealth tax" that you should avoid?

DiscountGuy · January 10, 2006 4:16AM

I wish I could spend some of my new money to get a new Back, 4 surgeries still no help. When I was younger I heard if you had 1 million dollars a person could make as much as $50,000 a year in Mutual Bonds or something like that. And for coins I can't invest in rare coins because I don't have any idea how to resell for a profit.

JRocco · January 10, 2006 4:21AM

With a decent starting amount, I would invest 60% in stocks/bonds (in the percentages you feel comfortable with) - if you are not comfortable doing it yourself-get an advisor. Put 20-25% in your home(s)- 5% in liquid assets (eg-cash) and with the remaining amount- coins/cars/vacations/golf---whatever floats your boat. I am assuming you are adding some type of income for your day to day expenses. And by the way-that last 10% or so has to be expendable money, if you lose it or spend it-it's OK because it was your "enjoyment money". Good luck and welcome. And by the way-take my advise for what it cost you.

ldhair · January 10, 2006 4:21AM

DiscountGuy
Will you have to pay taxes on the gains if you sell your property?

RYK · January 10, 2006 4:25AM

20% Vanguard Total Stock Market Fund (VTSMX)
7.5% Fidelity Contrafund (FCNTX)
7.5% Selected American (SLASX)
7.5% Third Avenue Value (TAVFX)
7.5% T Rowe Price Midcap Growth (RPMGX)
10% Oakmark International (OAKIX)
5% Fidelity International Small Cap Opportunity (FSCOX)
20% PIMCO Total Return Fund (PTTDX)
15% Vanguard Prime Money Market

What can I say? I am a financial advisor wannabe.

DiscountGuy · January 10, 2006 4:30AM

<< I'm not sure that a financial advisor is the best path. Perhaps a business & tax advisor would be better. You may be better off with the assets inside a business that pays dividends to you rather than income - I am speculating at this point but there maybe something of interest in this ballpark.

Does FL have a "wealth tax" that you should avoid? >>

See a great Point, A wealth/Tax, I don't what is? I will find that out soon for sure. Ty For That Slider.

brccoins · January 10, 2006 4:33AM

I'm not a huge fan of investment advisors. As far as I'm concerned they are nothing but salesmen. You are going to hear a lot of the buy and hold for the long term BS. 6 months later the market will just be making a minor correction and taking a little profits. A year later your advisor will stop taking your calls. What goes up must come down. The stop market is subject to the laws of precession as is everything. Whether you make money or not your advisors will make their money. They DO NOT care about your money as much as you do. I suggest you invest your money yourself because if you don't know how to someone else will...

DiscountGuy · January 10, 2006 4:34AM

I don't want to say much about that, if I do it will be little, its the way I have the properties deeded. I can't say much more on that.

JRocco · January 10, 2006 5:14AM

I picked up 1000 shares of Apple about a 1/2 year ago in the $30's, but what the hell do I know

Yes the market can be very good to you if you tread wisely (where is that wise old bear when you need him)

coindad · January 10, 2006 5:17AM

Discount Guy
You should talk to me. I own a financial planning firm and work with people in your situation all the time. No slick products or gimmicks. Very conservative, broadly diversified, institutional type products that allow clients to receive income and still achieve modest growth. My website is www.beaconfinadv.com. Check it out.

topstuf · January 10, 2006 5:20AM

50k per year off a million is only 5%. That's EASY to do. Talk to a professional. If they find out 5% is all you want, you will have a BUNCH of choices.

pharmer · January 10, 2006 5:25AM

<< Be very careful. Six months from now I don't want to have to read that the "Coin Possey" had to rescue you. >>

No one expects the Coin Posse™

ER · January 10, 2006 5:27AM

Man, I love this place!

Russ, NCNE

FatMan · January 10, 2006 5:31AM

Why would you ask here? We collect coins, what could be more crazy than that?

CaptHenway · January 10, 2006 5:33AM

Go to Las Vegas. Put it all on Number 22, just like the guy in "Casablanca"..........

ldhair · January 10, 2006 5:37AM

<< I don't want to say much about that, if I do it will be little, its the way I have the properties deeded. I can't say much more on that. >>

Understood.
You need a real estate lawyer (not your regular lawyer) and a great CPA.
Don't go cheap.

Build a team that are active in what you are into now.
I would not base any important decision on the opinion of any one member of your team.
You may wish to add a financial investment expert once you are sure where you wish to invest.
Over time you will need to add and remove members based on the area you are working on.

I use a CPA that is active in buying and selling properties himself. He knows the small details that help.
The same with my lawyer and the Realtor I use when needed. They know how to help me and are not selling a product, except their time.

I don't do anything with the stock market because I don't understand it or wish to.
On the other hand my wife is truly a financial investment expert and has done well.
Real estate is what I understand, so that's where I invest and my team helps me do it wisely.
Pay the right people to help you and much of the worry will be gone.

cladking · January 10, 2006 5:39AM

There's been mostly good advice so far.

Diversify and protect yourself from inflation. Get professional help unless you feel confident to do it alone.

taxbuster1040 · January 10, 2006 5:53AM

There has been some great advice here. I always tell my clients that "no one cares about your money as much as you do". IF you never read any books on the subject of financial planning and the benefits of diversification in your portfolio, now is the time to do so. What good are recommendations of advisors, if the first time the market drops you sell out in panic. You must get to understand the markets a little on you own first. Selling off appreciated property in one year will surely subject you to the alternative minimum tax on the gains. This is a foolish mistake. You need a competent tax advisor, CPA, and/ or a FEE ONLY financial planner. IF you dont take a strong interest in your own financial affairs, you will be milked dry by all the vultures in the world. So start reading some of the great books out there on the subject of taxes and investments. Then diversify your investments, so you will always participate in some sector of the markets which is going up. Another thing, it is rather unusual to go on a public board and announce your wealth to the world. Alot of us on the board are not poor. But there are some real disadavantages to spilling your financial guts on a public board like this, where who knows what true evil lurks....' nuff said....

BASEagle · January 10, 2006 6:02AM

Remember the advice of the immortal Yogi Berra:

"Buy stocks that go up. If they don't go up, don't buy them."

Mike

13PacesEast · January 10, 2006 6:04AM

2 mil? That's it?

Pocket Change.

monsterman · January 10, 2006 6:07AM

the first 300 dollars you invest in numismatics is books

then read your a$$ off...

knowledge is paramount

monsterman

MadMonk · January 10, 2006 6:12AM

<< Buy CD's and you will never have to worry about loss...and you will have an monthly income. >>

yep fdic insured

Russ · January 10, 2006 6:13AM

<< Anyone have solid advice how to invest this money when I sell all of my properties? >>

PM IWOG for advice. He's a friggin' investment genius.

Russ, NCNE

MadMonk · January 10, 2006 6:15AM

<< 

<< Anyone have solid advice how to invest this money when I sell all of my properties? >>

PM IWOG for advice. He's a friggin' investment genius.

Russ, NCNE >>

I do believe russ is telling a TALL tale.

Russ · January 10, 2006 6:30AM

MadMonk,

He is. Just ask him.

Russ, NCNE

MadMarty · January 10, 2006 6:35AM

<< 

<< Anyone have solid advice how to invest this money when I sell all of my properties? >>

PM IWOG for advice. He's a friggin' investment genius.

Russ, NCNE >>

True, the OF is overflowing with money thanks to Woggie!!!

Bear · January 10, 2006 6:40AM

Depending on your age if you are about 60 and you are adverse in risk,

then I would advise the Government I Bonds. These are inflation adjusted

every 6 monthsd and are currently paying over 6 1/4 % interest. As advised, If you

seek the council of a licensed financial advisor, seek out one who does not work on commission but

rather works on a straight fee. All investments are balanced between risk and safety. Depending on

any other sources of income such as pension, social security and income from rentals you may choose

more security or go for higher earnings and more risk. You and your financial advisor have a number

of calculations that must be made before a decission is at hand.

100proof1957 · January 10, 2006 6:42AM

your principal residence should be tax exempt on capital gains up to 500,000 if married.

The rentals can be defered via a 1031 starker exchange, ie: like for like or close to it dollar for dollar

as in an 800,000 apt building for an 800,000 business complex the taxes are deferred.

when you pass away,if you have left the properties to your hiers,they are appraised and the heirs assume the new value

ex: you paid 50k and the property is now 300k,the heirs have a prop worth 300k and no cap taxes are due

i think the death tax kicks in at 600k but thats tangible assets other than real estate

Please consult your tax advisor for more details !

now if i had 2 million in cash and wanted to build a retirement account !

10 % in nice coins,whtaever you like,all slabbed and dont over pay,do yur home work and figure on losing the whole investment

60 % in double no no's,thats a state muni bond,double tax free,no state or fed tax on the gains (though you may pay taxes on the interest,but usually no) !
keeping in mind that less than 1% of all muni bonds in the last 100 years have defaulted !

30% in mutual funds that have averaged over 10 % per year for the last 10 years and there are plenty of them !
sure,one year ya lose 8 % and the next ya make 18 % !

i have administered my other halfs 401 k for 2 years and it has shown a 30 % gain over that span.

Past results are no guaranty of future performance !

puff · January 10, 2006 6:43AM

<< 

<< 

<< Anyone have solid advice how to invest this money when I sell all of my properties? >>

PM IWOG for advice. He's a friggin' investment genius.

Russ, NCNE >>

True, the OF is overflowing with money thanks to Woggie!!! >>

nolimitz · January 10, 2006 7:00AM

I'd look for a "fee only" Certified Finiancial planner. Stay away from commissioned planners. Do your homework on investing, Learn, read, read some more. Slowly learn to do it your self with some help up front.
JMHO

MikeInFL · January 10, 2006 7:05AM

<< I'd look for a "fee only" Certified Finiancial planner. Stay away from commissioned planners. Do your homework on investing, Learn, read, read some more. Slowly learn to do it your self with some help up front.
JMHO >>

Fee only certified financial planners are the only way to go.

There's a great online website that will teach you much of the basics of investing: The Motley Fool.

Have fun...Mike

topstuf · January 10, 2006 7:11AM

I love FDIC insurance. It covers banks to a full 1.25% of losses. That's over ONE percent.

Better edit that. They keep 1.25% ...RESERVES. Unlikely to be exceeded.......but entirely possible.

How To Invest 2 Million Dollars Serious Advice needed

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