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how would you invest $500,000?

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Originally posted by: veggz
Originally posted by: F22 Raptor
Put it all one google when it gets around $380, sell as soon as it hits $400. Even safer than buying at $360 and selling at $420.

Gauranteed money, GOOG has been this way for over 10 months.
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Excellent idea, that way if Google's Enron-esque scandel is exposed tomorrow he will have $0.
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Let him miss out, I'm loving it over here.
 
If anything, buy some US treasuries, it sounds like they're just letting it sit in a savings account getting nothing right now.
 
One things for sure...what ever you do, don't put it into one thing. Spread it out, so that you minimize risks if something goes suddenly broken.
 
Originally posted by: wasssup
Just trying to help a close relative with investing $500,000. He's currently getting a really crappy return (something like $1000-$1500/year), assuming he puts it into something like citibank e-savings (5% return) that's $20,000 right there a year. Then there's higher interest CD's...

Stocks are out of the question, as we're not looking to take risks...a few years ago he got burned on a few stocks and lost most of his savings, he's not young anymore so he can't rebuild his savings yet again.

If we were to put money in a high-interest savings account or CD's, should we split them up (ie. between different banks)? Just trying to gain some insight here.
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FDIC limit is 100K.... tell your relative to find himself a real asset manager.
 
Originally posted by: F22 Raptor
Put it all one google when it gets around $380, sell as soon as it hits $400. Even safer than buying at $360 and selling at $420.

Gauranteed money, GOOG has been this way for over 10 months.
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haha wow... what a brilliant plan. I hope you have nothing in equity come 2007, because you will be SOL. Take a look at the yield curve and tell me which way its poining.
 
I am amazed at all the bad information posted in this thread. Your friend should seek advice from someone knowledgable, which is the only good advice here.
 
financial advisor would be wise...

personallly i would invest in apartments near hospitals or college areas (depending on region of country he is in)... do some research... even commercial property is good... commercial buildings here require about 30% down payment... depending on the building he could earn serious income per month... after a few years land value will increase for extra income... just think: population will forever increase but landmass will always stay the same... again, its all about research... tell him to find a real estate person to help him out


JR
 
Originally posted by: confused1234
PAY OFF ALL YOUR DEBTS! that would be the smartest thing to do
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Not really. Think of it this way. If you owe some company some money which you are paying a rate of say 10% but you can take that money and make 20% on it then why would you want to pay back that money?
 
Originally posted by: her209
Originally posted by: confused1234
PAY OFF ALL YOUR DEBTS! that would be the smartest thing to do
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Not really. Think of it this way. If you owe some company some money which you are paying a rate of say 10% but you can take that money and make 20% on it then why would you want to pay back that money?
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Err, because debt interest is in most of the cases higher than investment interest, unless it's a sponsored debt (like car financing)? And because there aren't many, if any, SAFE investment that yield 20%?

Unless you got some insider information for a stock (shh.. SEC) or something like that, you generally shouldn't be investing borrowed money.

 
You can buy 10 homes at $50K a pop (I bought mine for $50k here in TN) and rent them for $500 each per month min. Thats $5,000 a month take home or $60,000 per year 😀
 
Originally posted by: wasssup
Just trying to help a close relative with investing $500,000. He's currently getting a really crappy return (something like $1000-$1500/year), assuming he puts it into something like citibank e-savings (5% return) that's $20,000 right there a year. Then there's higher interest CD's...

Stocks are out of the question, as we're not looking to take risks...a few years ago he got burned on a few stocks and lost most of his savings, he's not young anymore so he can't rebuild his savings yet again.

If we were to put money in a high-interest savings account or CD's, should we split them up (ie. between different banks)? Just trying to gain some insight here.
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Just looking up threads on investing.

So, he doesn't know what he he is doing with stocks. And followed the herd.

Now he thinks he'll get good advice from you?

Let me guess ... he bought speculative stocks (like nmost of the dumbf-ck herd)

Stocks are awesome.
Did he buy JNJ or O?

I highly doubt it.

Tell him to buy stocks like those two and there is nothing to worry about excpet for the end of the world.
 
Originally posted by: BigJ
That much money? I'd be talking to a financial planner.
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:thumbsup:


Is there some kind of financial adviser/ planner association that you can consult, to find a reputable adviser?
 
As others have wisely stated, your relative needs to seek the advice of professionals.

FDIC limit is 100K....
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While this is true there is such a thing as a "CDAR" (or SEDAR) account. Basically, it lets you do all your investing with one bank. The bank then invests the money in multiple CDs with other financial institutions. The end result is each account is FDIC insured but the person investing the money only has to deal with one bank. This is often used to get around the 100K FDIC limit and your relative may want to look into such a set up.

-Keith
 
reading list
info
There's plenty of free information at mutual fund company websites that you should read before you pay anyone. Read and or post your questions at Vanguard Diehards or other forums at Morningstar. You've provided scant information about the investor's basic situation and investment goals, and the amount too large, to provide meaningful advice specific to him.
 
FDIC matters only if you bank in a small bank. government won't let a big bank fail. this is called too big to fail.

how free can you invest the money? some investment are more liquid than others. I would suggest i-bond, if he doesn't need the money in 5 years. it pays close to 7% now and it will adjust for inflation.
Is all the fund for retirement? also he needs to max out his roth ira starting now.
 
Originally posted by: Baked
Buy a house in San Francisco... oh wait, you need another 500K for those.
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I think you need another 1500K for that! You need 500K more for a house in the valley!!! The San Fernando Valley! 😛
 
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