2 million dollar settlement, what would you do with it? Seriously.

[dr150]

1.) Put 5k in a Roth IRA S&P500 index fund. This amount will compound to an acceptable amount in 200 years.

2.) Put 50k in a Vegas hookers & blow trip.

3.) Bet the rest on black.

 

[angminas]

Sounds like he is following in the footsteps of other brain dead NFL players and stupid investments. Ideas #1 and #2 are typical ideas they all try.

I predict not only will he lose the money quickly, he will actually end up in debt and have to declare bankruptcy.

Though I'd phrase it more nicely, I must agree with the financial assessment. I've heard too many similar stories. Most athletes are not good at business, so it's often not much better than taking that money to Vegas. At the least he should put away 500k in safe investments and not touch it until retirement age. If he puts all his eggs into one basket, he's going to end up with one very expensive omelet.

You know what he should really do? Call up John Elway and Peyton Manning. Ask them for financial advice. They'll have some time for an ex-NFLer.

 

[PlanetJosh]

1 & 2: Invest it in index funds and go back to reading AT forums.

 

[Ichinisan]

Vaginal intercourse.

 

[Nograts]

Vaginal intercourse.

I always forget how flawless your logic can sometimes be.

 

[tortoise]

Keep it simple and boring . . Vanguard corporate bond fund, make the estimated quarterly tax payments, and budget spending to the balance of the monthly dividend income.

 

[BurnItDwn]

Ehh, 2 million

500K I would invest into an S&P 500 index fund.
250K I would invest into an S&P 400 midcap index fund.
250K I would invest into a Russell 2000 index fund.
I'd pay off the remaining 130K I owe on my house. Then 10K on some refurbishing I'd like to do.
I'd buy my woman a new Taurus since hers has like 160K miles and has tons of problems and she loves it even though it's a hunk of crap. It's like 40K for the SHO trim.
The banquet hall in town closed and is for sale for about 500K. It's got an 8800 sq foot building on it as well as parking lot and free street parking access.

I'd set up a brewery in half of the building. I'd aim for around 15bbl brewhouse capacity with a half a dozen 15bbl fermenters. ~250K for brewhouse, fermenters, pluming, running gas lines, etc
The other half of the building would be the pub.
Kitchen would have a short menu, BBQ + Creole style food. Because the closest halfway decent Creole place is like an hour away, and BBQ places are not close either.
150K to for the pub/kitchen rehabing & furnishing

I would hire my brother as brewmaster. He has brewed 100+ small batches and has been obsessed for about the last 5 years with brewing. When he gets obsessed, he studies and learns every detail to the greatest detail about something with attention to detail that would frighten most people.

I would hire an experienced restaurant manager. I have no experience running a restaurant outside of my 6 months in fast food as a teenager. I have some management experience due to managing offshore resources and projects at the office.

I would continue to work my existing day job if possible since the cash flow would be really nice at least during the first year or so so that I wouldn't have to touch the million I have invested... This means I'd only be working a few hours in the evenings in the brewpub, as well as weekends... which means I would have no more social life, but, I'd be working with my brother and I'd put the fiancee to work there, so that would be OK.

Ideally, I would prefer to have 5 million before starting my brewpub, but, 600K-750K is the actual necessary seed money to buy property outright, and set up brewery and restaurant operations. My fathers best friend is semi-retired, but he ran restaurants for much of his life, I could count on him as a part time manager for the restaurant, at least help me to learn things faster/better.

 

[BeeBoop]

Spoke to him today and he told me he was planning on investing a portion of the money in some type of stocks and leaving some for his business adventure. I told him that I'd help him find a financial planner but he has some trust issues. He would rather me figure out what the best stock investments are without losing his money. I told him that I can't make promises that I can't keep but he was pretty insistent. I'm thinking that I could visit a few financial planners on his behalf to see how they would invest the money since I'm not an expert, as long as the fee-only price isn't too much.

 

[Schfifty Five]

Spoke to him today and he told me he was planning on investing a portion of the money in some type of stocks and leaving some for his business adventure. I told him that I'd help him find a financial planner but he has some trust issues. He would rather me figure out what the best stock investments are without losing his money. I told him that I can't make promises that I can't keep but he was pretty insistent. I'm thinking that I could visit a few financial planner on his behalf to see how they would invest the money since I'm not an expert, as long as the fee-only price isn't too much.

Are you seeing a cut of that $2M? He sounds like the type of person who would hold you responsible if something bad happened, regardless of how many times you told him that nothing is guaranteed.

 

[jlee]

Spoke to him today and he told me he was planning on investing a portion of the money in some type of stocks and leaving some for his business adventure. I told him that I'd help him find a financial planner but he has some trust issues. He would rather me figure out what the best stock investments are without losing his money. I told him that I can't make promises that I can't keep but he was pretty insistent. I'm thinking that I could visit a few financial planner on his behalf to see how they would invest the money since I'm not an expert, as long as the fee-only price isn't too much.

https://investor.vanguard.com/mutual-funds/lifestrategy/#/

 

[Jaepheth]

build 10 $200,000; sell them for $250,000+ each.
repeat.

Bonus points for implementing green technology.
Personally, I'd start building earth sheltered homes in the style of Tolkein's Shire. I imagine there's an untapped demand to live in a Tolkein inspired neighbourhood.

 

[Gooberlx2]

I'd probably pay off my house (or buy one in a reasonably affordable place), start a couple trusts for the kids/grandkids, and then put the rest in low risk funds, retire and travel. I dunno, maybe 50 is too young to fully retire, so perhaps I'd do something, not sure what.

 

[BeeBoop]

Are you seeing a cut of that $2M? He sounds like the type of person who would hold you responsible if something bad happened, regardless of how many times you told him that nothing is guaranteed.

Sort off. He said that he'd make a small investment into a project that I'm working on but I'm not really expecting anything.


Thanks for the Vanguard link, jlee.

 

[jlee]

np. Vanguard index funds are highly regarded - they have a very low expense ratio.

 

[BeeBoop]

I just spoke to them on the phone and he gave me another number to call to speak to an advisor. Is there any type of fee associated with Vanguard? How do they make money from the investment party is what I'm wondering.

 

[jlee]

I just spoke to them on the phone and he gave me another number to call to speak to an advisor. Is there any type of fee associated with Vanguard? How do they make money from the investment party is what I'm wondering.

https://investor.vanguard.com/mutual-funds/low-cost?WT.srch=1

Index and mutual funds have expense ratios - basically fees that are a percentage of the growth of the account. If a company has a 1% expense ratio and the market is earning 7%, you'll see 6% and they will take 1%.

 

[DaveSimmons]

Vanguard stock index funds have very low expenses because they just buy billions of dollars worth of a fixed set of stocks, like the S & P 500 list (the 500 largest US stocks).

It takes all the guesswork away. No one is "playing the market" or gambling on individual stocks. They just take a basket of the 500 biggest stocks and offer you shares of it.

The Target (year) fund is similar, but it takes the S&P 500 and adds the rest of the US market, some non-US stocks, and bond funds. All index funds, so still no gamblers or day traders involved.

It's about as safe as you can get, because unless we descend into a Road Warrior / Fallout world your basket of stocks will go up over time even if there are bad years here and there. Buy, hold forever, get rich slowly.

If we do end up in a Fallout world, you want guns, ammo, stimpacks, armor and your pip boy. Gold won't help a bit.

 

[JulesMaximus]

Hookers and blow... of course.

 

[MongGrel]

Why Warren Buffett Suggests Vanguard Funds

http://investorplace.com/2014/06/warren-buffett-vanguard-funds/#.VPTvBC55LV8

 

[brianmanahan]

Hookers and blow... of course.

it took 3 pages for someone to say that

we're reaching record-setting levels of civility here at ATOT

 

[LevelSea]

Rap music label.

 

[ponyo]

If we do end up in a Fallout world, you want guns, ammo, stimpacks, armor and your pip boy. Gold won't help a bit.

Ask the people in Ukraine and Russia if they wished they had gold instead of their local currency last year. Gold and precious metals are insurance. Except instead of your paid premiums going down the drain if you don't have a claim, you keep your premium. Think of gold and precious metals as insurance. And as currency rather than investments. Then it makes sense.

 

[MongGrel]

it took 3 pages for someone to say that

we're reaching record-setting levels of civility here at ATOT

:biggrin:

 

[DaveSimmons]

Ask the people in Ukraine and Russia if they wished they had gold instead of their local currency last year. Gold and precious metals are insurance. Except instead of your paid premiums going down the drain if you don't have a claim, you keep your premium. Think of gold and precious metals as insurance. And as currency rather than investments. Then it makes sense.

They'd be just as happy with paper US dollars or Vanguard index funds.

You're assuming the US has a chance of collapsing like the Ukraine. If that happens, we are in the Mad Max world and your gold won't help.

Edit: if you are a doomsday prepper: canned food, guns, ammo, medicines and first aid kits, toilet paper. Way, way down on the list is maybe some gold and silver in case Canada doesn't get the T-virus or Captain Trips or whatever.

 

[ponyo]

They'd be just as happy with paper US dollars or Vanguard index funds.

You're assuming the US has a chance of collapsing like the Ukraine. If that happens, we are in the Mad Max world and your gold won't help.

Edit: if you are a doomsday prepper: canned food, guns, ammo, medicines and first aid kits, toilet paper. Way, way down on the list is maybe some gold and silver in case Canada doesn't get the T-virus or Captain Trips or whatever.

I'm sure the people of Ukraine or Russia would've been happy with US dollars or Vanguard funds. But how easy is it to open Vanguard index funds in Ukraine or Russia? Gold is universal. You can take gold anywhere in the world and it's instantly recognized and can be easily converted into any local currency. So think of it as money. And if you think of gold as money/currency and compare it to all currencies in the world, it's the only one that has increased in value over time. Every currency in existence has lost value over time/history. Except for gold.

You seem to have irrational hate for gold and only think doomsday prepper own gold. Lot of rich people own gold. Pretty much all the govts own gold. USA govt own more gold than any other nation on earth. Why does the US govt own something so silly like gold when they have to waste all that taxpayer money guarding it? It's not like the dollar is backed by gold anymore. So why not sell it all? Or sell large portion of it? Maybe the US govt like looking at the shiny metal?

People spend lot of money on insurance they don't need or use. I spend tens of thousands a year on required insurance premiums (business, home, autos, health) which I don't use and never get back. My small gold/silver holdings are insurance against something crazy happening in the world. Who knows if WW3 will break out or the entire world economy collapses. With the world so closely linked and everything closely intertwined in derivatives and other financial instruments, it's not as far fetched idea as it once was. We came awfully close to worldwide financial meltdown in 2008. Who says we can't have a repeat down the line and the world does collapse? Great Depression happened less than a hundred years ago. I'm sure everyone in the early 1920s saw that coming.