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I would split it evenly between three mutual funds; Vanguard Wellsley Fund, Vanguard Short Term Corp Bond Fund and Vanguard International Index. This will give you a combination of income and growth.
I am considering stuffing a third of my little stash in bonds denominated in Swiss Franks. The dollar is likely to inflate itself into meaningless numbers as a result of all the borrowing by the government and individuals.
No, I do not need to store my box of bucks in your temp unit. Banks have places called safety deposit boxes. If not, my cellar may be a very dangerous place to try and steal my stash. I was also trying to illustrate just how much $2 million actually is. It is $50,000 per year for 40 years without interest. Without having to work a person can live fairly well on $50k per year.
I've been busy running my business for 18 years, and I've done well investing in real estate. I'm ready to cash out and walk to my mailbox for my direct deposit receipt.
Where do I invest? Any ideas?
I think you need to invest in yourself. Volunteering is a way to get great returns on your investment. In fact, you can get the greatest return you have ever seen and there is no way to lose. If all you are thinking about is making more money, then perhaps you have missed something that you hopefully will take the time to explore, and that is, how can I make the rest of my life meaningful and give back to this world that desperately needs people to care?
I sincerely hope that you can take some time to find the meaning in this life that you were meant to find.
A lot is left out of your posts, so it's difficult to offer advice. If I'm right, you're 42, have worked your tail off, and are worn out. But other information would have been useful. Do you have dependents, long-term care insurance, how much (if any) of the $2M is actual cash (any tax-deferred; how much is in taxable accounts?), are there college expenses ahead for family or friends, do you have charitable goals, what does it cost you to live per year, etc.
The treasury ladders mentioned above sound good, and the I-Bonds, even though the fixed rate is currently zero percent, still yield an annualized 4.85% returm. You can draw down a 4% return almost indefinitely and live on $80K a year plus SS if you have it.
Two-million $ should be fine if you live alone and if you live modestly. Otherwise, and especially if you have obligations, it's a good start, but retirement at 42, IMO, could be a costly mistake. You could easily live another fifty years. Only you can answer the question you've asked.
two good companys to ivest are Vanguard and Fidelity. 2 mil seems great, however,
will this all be taxed now? Will you have health insurance? you also might find that after
1 year you are bored. I think I would sit down, and get a few ideas b4 you cash out.
I toyally agree with Janab's 4/7 post.
I am a millionaire several times over and have followed Bob Brinker for approx. 20 years. His website has the best books you could possibly read on this subject. He has a weekly broadcast that you can get the station in your area off his website. You can even call in and talk to him if you like.
I guarantee you will not go wrong if you take the time to get involved and forget about paying financial planners and stock brokers big bucks.
From what you said you are only 42 years old.....My godness man you should be able to live comfortably for the rest of your life if you just manage the money correctly.
I would open up an account with The Vanguard Group and talk to there C.D. dept to build a ladder of "short term" C.D.s ( 1 year or less ) until you get your act together. Remember though only $100,000 in each C.D. unless you have some tax deferred money and with that you can invest up to $250,000 per individual C.D.
Be sure to get clearification from Vanguard about CD investing so you have it clear in your mind about how to set up the laddering.
Save out enough cash for and emergency fund and cash to live on for a year.
I would put that money into the Vanguard Short Term Tax-Exempt Investors Shares where it will pay you tax free intrest and is totally liquid. You can write free checks for over $200 or more any time you need money.
Apply for a Mastercard or Visa Card that pays you a 1% or more cash back, and pay it off in full every statement. Use the card for most of your expenses and use your cash only when neccessary. You will be using their money for at least 30 days each month.
I say put it where you think it can make some money becasue ti is lossing value right now.2 millon sounds like alot but if you are cash out evrything it really isn't.I would watch out for anyone that is selling a book or get rich quick skem for sure.
IF you still cant figure out what to do with it GIVE me some!!!!
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