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1824322 No.1824322 [Reply] [Original]

Both my parents passed away, and I've unexpectedly come into a large amount of money. Over $1 million. What do?
What do people do with this amount of money?

>> No.1824327

go to a financial advisor, outline what your goals are and get it somewhere out of your hands. after that read a lot of books my dude then revisit the advisor with your knowledge and get it sorted

>> No.1824329

actually go to a few financial advisors.

>> No.1824331

>>1824322
Save part of it, say 10 or 5% for an emergency fund. Put the rest on the stock market. VTI is a good starting point.

>> No.1824333

>>1824327
Thanks, but I'm a bit skeptical about seeing a financial advisor. I've heard bad things, and they also charge an arm. Can't see why I should spend money on them when I can just find out what other people do with large amounts of money

>> No.1824336

>>1824331
Never really understood the stock market. Isn't it basically gambling?

>> No.1824346
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1824346

>> No.1824350

>>1824336
Ok, so a share, or a stock, is part of a company. The stock market can be volatile, if you entered it just before the recession hit in 2008, you you'd have lost half your money by 2009. With that said, the stock market is still a very reliable place to make money. If I am not mistaken, the historical average for the US stock market is something like 7% growth per year.

Now, say you invest all your money on facebook, and a new social network is better and facebook fails. Or that you invest in oil companies, but all of a sudden a new energy source is found to be much more efficient and cheap. In both cases, if you invested all your money in one company or sector, you would be very exposed to fluctuations within the company or sector. Hell, even a change in CEO can badly influence a stock.

To counter this high risk, ad visors will recommend you to diversify your investments, that is, invest in many sectors in companies, so that if one goes down, you still have your others investments up. Generally speaking, diversifying reduces risk. (Although it might also reduce your rewards)

>> No.1824354

>>1824336
Indexing (e.g. buying VTI) is not gambling, though the value of your investment will be volatile over short time periods.

Buying VTI is exactly the right thing to do if you don't know what to do. You also should open a Roth IRA with Vanguard if you're American and don't have one, and max it out. (If you hurry you can get $5500 in for both 2016 and 2017.) Buy a Retirement 2060 index there.

You're right to distrust financial advisors. Almost all of them are theives and without knowing this much you won't be able to tell.

>> No.1824356

>>1824350
Cool, thanks for explaining. May I ask, Do you trade in the stock market? How do people know which stocks will go up and down?

>> No.1824358

>>1824336
Look if you don't like that, look into investments which are less risky but also have less rewards.

Start with bonds and research "types of bonds" in google. Find one that you like.

If even that's too risky for your taste, look at money market funds. I mean, the safest "investment" you can do is a bank's CD or even just a savings account with interest above 1%. But the downside of that is that you'll be outpaced by inflation, so your money will inevitably lose value (say 3% per year) every year unless your investments return 3-5%.

By the way, that's what you want. A 3-5% return on your investments. That hedges you against inflation.

Honestly with 1mil I'd still keep my day job, like you should have or get, but by putting away my money in even low-yield safe investments now, it'd grow to a good sum by the time I retire, and I would retire like 20 years earlier than most people (lucky you.)

>> No.1824362

>>1824354
This jives well with the poster above. VTI is an index fund that tracks the entire US stock market, so it is very diversified.

To go further you might look into buying mutual funds (like the Vanguard or Fidelity retirement target date ones), which will also include bonds and international stocks. My feeling though is that diversifying beyond America is just lost money, and going into bonds when you don't need your money tomorrow is also lost money.

I don't know how to buy these target date funds outside of retirement accounts, but I assume it's easy.

>> No.1824366

>>1824356
If you don't know what you're doing, you stand a good chance to lose a lot of your money in the market if you go at it alone without any help.

There are safer investments which will still bring in decent enough returns for you to retire like 25 years earlier than most people and even much, much earlier depending where you work.

>> No.1824370

>>1824356
Not the person you're replying to, I'm the other guy talking about indexing. No, I don't trade in the market. I do pick stocks sometimes but I hold them for long time horizons. I never try to guess when the value will go up or down, that's "timing the market" and is gambling.

This guy >>1824358 is being waay too conservative for a 20-year time horizon. Historically the US stock market has averaged 10% before inflation (roughly 7% real) and he's telling you to seek out a 0% real return. This makes sense if you need your money immediately and can't risk the value crashing for several months or years, but on a 20-year horizon that all averages out.

>> No.1824374

>>1824336
>>1824350
Many people try to beat the market. They will tell you
>Our professional management will bring you the best returns! Give us your money, and don't worry about investing no more!
That is called a mutual fund. Basically, investors charge you a fee and manage you money. But the thing is, not all mutual funds beat the market, in fact, very few of them do. On top of not beating the market (making more than average), they will also charge you a fee such as 2% of your holdings.

Be careful around those people, they make money over gullible people like you. They are sharks and feed of the ignorance of the general public.

>>1824356
No one knows for sure which stocks will go up and down long term, but as I said, there are trends, save bad years, the US stock market as a whole grows well. So instead of trying to find the ONE stock tha will outclass everyone in the long run, I recommend you to buy something that tracks the entire US market as whole. If you can't beat the market, tie with it.
What VTI, and others do, is that they buy a lot of shares from varied companies (diversification), and behave like a stock themselves, so with that one stock, you're already as diversified as it gets, paying low fees, and tracking the US market. (This is usually called indexing)

>> No.1824377

>>1824366
If he uses a 3.5% drawdown as currently advocated by the Mad Fientist (a blogger who has adapted the 4% rule with some studies related to P/E ratios at the time of retirement), he could possisbly retire today in most of the US. Also depends on his current savings, whether he owns property, etc.

>> No.1824401

OP here's what you do.

Find the speech by John Goodman in the movie The Gambler about what to do with 2.5 million dollars and do as much of that as you can but with only 1 million.

>> No.1824406

>>1824322
people go to tg or qst for their role playing needs.

>> No.1824427

>>1824406
I'm an Aus fag. 25 years old, only child and was still living at home.
Parents gone now and left everything for me in their will as we aren't close with any other family.
House is technically mine now, 3 average cars, and other than their money (super, savings etc.) I have little of my own. I just have a casual job, and only have about $15,000 in savings myself.

There are savings accounts in Aus that get 3% per annum so was thinking of just doing that, but not sure if there were better options

>> No.1824446

>>1824427
These savings accounts will basically counter the inflation rate, but you won't be making money out of it.

>> No.1824457

Hey man Im getting a start-up of the ground, throw me $10,000 and I can promise a 15% return in a year or two. That's good gainz

>> No.1824463

Boats and whores

>> No.1824464

>>1824446
I don't understand, how will I not make money from it? If I put 1.2 million into a savings account with 3% that would earn me $36,000 for the year, or $3000 per month no?

>> No.1824468

>>1824322
Blow it on coke and hookers. Live!

>> No.1824472

>>1824322
you go full Warren Buffet mode

beware of George Soros mode

>> No.1824478

>>1824336
No, it is not gambling unless you know what you do. It is hard to lose money trading stocks. I advise you to look up PLX, if i had 1 million i would've put everything in that one now. I'm in with 80k now.

Read this, you'll make 3-4 millions by the end of the year if you buy this. It's the stock which have gained the most this year, and for a reason. Check article below for more info.

http://seekingalpha.com/article/4048023-protalix-biotherapeutics-new-institutional-ownership-swells-ahead-major-catalysts

>> No.1824483

>>1824464
Yeah, you will have more dollars, but as inflation goes up, the value of the money goes down. Your money will be worth basically the same.

>> No.1824502

>>1824464
Money is constantly getting more worthless. It's called inflation. Like when a geezer says "back in my day I could buy a root beer for a nickel" but today it's $1.25.

So interest has to be so high that it beats inflation to actually generate wealth. Otherwise you get "more" money but it still buys you the same because it's always losing value.

>> No.1824503

>>1824333
what state are you in?
I have a guy in Vic that is making me A LOT, 15-20% yearly and I only pay 25% tax

>> No.1824505

>>1824464
Capital gains tax bro...
Or income tax

>> No.1824508

>>1824464

Good luck finding a bank with 3% annual on savings account these days. My bank offers 0.05% on savings and 0.3% on deposits. I'm a yurocuck though, but it doubt it's much better in the US.

>> No.1824530

The secret to beat the market is being skeptical.
If you do the exact oposite of everyone else, you will make more in the long run.

>> No.1824722

Call up and give your money to a financial management team. The ones I know can usually get people a good 6-8% on $1 million (which means 60-80k per year without touching your $1 million ever). Sometimes more. Very little risk, very little cost (they take a % of what they get you).

>> No.1824842

>>1824322
I thought your pic was pokemon cards OP I was like god damn I'll start investing in daycare centers.

>> No.1824844

>>1824842
lol

>> No.1824851

Invest every last penny of it in a market order of NAK shares

>> No.1824853

>>1824851
don't do this

>> No.1824854

>>1824401
https://www.youtube.com/watch?v=Q1qFqsQZXfo

>> No.1824855

bitcoin

>> No.1824878

>>1824530
Good and simple advice. When you see a lot of advertising about how AMAZING a stock is and the stock is high, it's time to sell. On the other hand when you see a lot of media about how shitty the stock is and the stock is low, it's time to buy.
The pendulum always swings, timing when it's going to swing the other direction is the whole game.

>> No.1824884

>>1824878
>The pendulum always swings
except when it doesn't. Sometimes good stocks really are good, and sometimes shitty stocks really are shitty.

You should never post here again, really. On /biz/ I mean. /r9k/ is fine for you.

>> No.1824897

>>1824333
Read Warren Buffet's annual report, then put your money in Vanguard, Fidelity or other low-fee, broad-market funds like every other person with your amount of money does.

Most importantly, DON'T TELL ANYONE YOU FELL INTO A BUNCH OF MONEY. They don't need to know, and it will only cause problems for you in the long term.

>> No.1824909

>>1824366 correct

>>1824401

Legit do this. Find the youtube. I live my life by it op. If not role playing am sorry for you loss. Speech summary is something like you get up 2 mill you get out. You get a medium income house with a 30 year roof and a jap exonomy shitbox. Put some away to cover your taxes. Then for the rest of your life live from a position of fuck you. Essentially. You do wtf you want when you want.

You wanna gamble in shitcoins or stocks or invest in real estate or a biz? Keep your bases covered and have at it. U go belly up? Oh well, fuck u. Hop in your toyota and come back to shitpost about it here.

Single best advice for most of us.

I tried studying the 1% rich. I simply do not have the stomache for it. I wanna be rich but moreso i wanna be able to say fuck you. Being rich after that is just a bonus i can live happily without...


For real tho op. Get you some personal finance and investing books. Take some time off to reflect and study. Invest small amounts here and there until you get a rythem. And gradually increase.

Aside from emergancies you never want to just be sitting on cash. If its like americas fiat currency you want that money buying assets that biy assets that buy assets etc...

>> No.1824921

>>1824322

party
party
party
party

you could die tomorrow.

>> No.1824924
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1824924

>>1824909
https://youtu.be/rJjKP8vYjpQ

If u dont wanna watch it all at least watch from 1:45 for a bit. Fucking sage advise for most.

>> No.1824934

>>1824884
you're right, always was the wrong word.
Stocks do often have highs and lows and if you can see the general patterns of the stock, you can usually make a decent profit.
You only lose when you invest in no-name, shit stocks that have less than 500million capital and are only inflated with intangible hype.
Invest in large, well-known companies and the chances of the stock never rebounding after a crash is fucking minuscule.

>> No.1824938

>>1824322
Vanguard managed payout at 4% annual.

It's that simple.

>> No.1824963
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1824963

>>1824478
Nice

>> No.1825050

>>1824350
>>1824354
>>1824358

You are the heroes /biz/ deserves.

>> No.1825128

>>1824478
moron

>> No.1825312

>>1824322

save it for lawyer. police is going to find out soon what happened to your parents.

or leave the country.

>> No.1825433

>>1824327
How to get milked 101.

OP, invest the money in stocks, bonds, and property and live off the income. You're retired. Congratulations

>> No.1825495

>>1824322
Buy ETH.

You'll have 1.2 million by this weekend and 2+ million in a month. Not even kidding.

>> No.1825994

Buy Choccy milk as well...
Frozen oak 2.0

>> No.1826002

OP here, back at last.

>>1824503
Yeah I'm in vic also

>>1824508
I'm in Aus and there are lots of banks with over 3% interest lol

>> No.1826012

>>1824336
First tip, don't expect good advice from this site. Also, do not listen to shills talking about their pump-and-dump stock.

>> No.1826020

>>1824322
Bro, if what you say is true, this is the WRONG PLACE to get advice. Go to a financial adviser. Ask them many questions, REALLY ask them. If you don't feel comfortable, move on. Some of them are not financial advisers, they are sales people. Recognize that and move on. This would be an unexpected windfall, financially, so there is no rush. Do your homework, make sure you truly understand what you are getting into, do not be pressured. This whole field is fucked up with shills looking to eat up whatever capital you have. Again, ask a lot of questions, if you don't understand it and they are being evasive, find someone else. There's no rush.

>> No.1826021

>>1826012
yeah this guy, listen to me, be safe with that money

>> No.1826027

>>1824322
I would use 5-10% of it to play the stock market then I would just spend $18,000 a year for the next 50 years.

>> No.1826032

>>1826027
$18,000 in 50 years is worth less than $18,000 today

>> No.1826033

>>1826002
OP, I can give you the details.
Post a throwaway email, then I'll post one so you know it is me.

>> No.1826080

Put it all in your bank account, get that 2% return, live like a poverty king

>> No.1826118

100% S&P 500.

>> No.1826126

>invest it all in s&p 500, work for a few years and collect the 30000 in gains each year, reinvesting and then just live off your gains

>> No.1826130

>>1826126
OKAY I'LL TRUST YOUR RANDOM 30000 NUMBER

>> No.1826145

>>1826130
Do you know what the s&p 500 is

>> No.1826152

>>1824322
Go to the casino. Put it all on red.

>> No.1826159

>>1824924
Havent seen this film before. Looks like its worth watching

>> No.1826163

>>1824322
Go to /r/personalfinance or better yet, /r/financialindependence. They should set you on the right path.

>> No.1826202

Dont do anything with it until you do some actual research. Kudos for not paying someone to figure out how to spend your money. Just let it sit tight, you have all the time in the world. And dont let anyone know you have it for fucks sake.

Hmm $1million i would put .0000001% of that in NAK + PLX (combined, just split it) and then do something intelligent with the rest of it (eventually, once you have done research)

Look into DRIP investing, the concept is the same if you just do it manually with very little effort if you'd like to get exposure to stocks.

Trading stocks is not a hobby, its a profession. Its ok to pick a stock like Apple and put 10 grand in it as a long term investment.

Cryptocurrency seems more like a hobby if you wanted to get into mining, and potential investments on a btc dip.

Cash is king, 1 mil is not chump change. To me, thats "fuck you" money. Not to say you cant be a good person and donate to some charities every once in a while if you feel like it later, after you've put it to work for you generating income.

>> No.1826321

>>1826033
tom.bloom66@hotmail.com.

Would appreciate the details, also from Vic

>> No.1826365

>>1826321
Tell me more about your financial situation?

>> No.1826367

>>1826365
these guys are only mid 6 figures plus

>> No.1826523

>>1824478
>It is hard to lose money trading stocks
Nice.
t.5% loss in about a year or so
Though all of the companies are turning a profit so I guess the situation is not that bad. Are stock fluctuations really just people having unreasonable expectations and just plain old panicking? Why the fuck is the stock market not rational?

>> No.1827653

>>1826159
Called "the gambler" with mark whalburg.

I think its put together well and i own it.

Seen it once but i cant watch it.

Hits pretty fucking close to home in a lot of ways and keeps me up at night for days after i watch it...

>> No.1827724

>>1824322
My city in Peru needs a good disco, owners of small ones earn a lot and we are civilized...you can get comfy here
My city has a lot of lands and they will increase their price at least 2x.
If you want to come here its ok but dont get near the main city (Lima) or you could get robbed. Take a fly to Chile and stay in the south.
Later you can invest in academiess, construction, universities, mining companies...idk

>> No.1828499

>>1826365
make about $150k/year. In line to inherit some money. Lot's of equity in the house.

>> No.1828616

>>1824322
Go to charles Schwab and. Uy stocks in blue chip companies. Never work again.

>> No.1828645

With 1 million dollars, if you dumped it into AMD a year ago, you would've made a shitload. But who knew right?

Basically, you need to do your research on companies before you put money into them (obvious shit).

Here is a huge tip that people don't really listen to: Make sure you're in for the long run. Do not freak out when it drops like 10 or 15%, just put your money in a trusted company that is reasonably popular and let the money sail. Like all investments, there is risk. But I mean, do you have the balls?

Most billionaires in the world don't mind spending billions into AMZN back then nor do they today. Why? Dude, look at the history of AMZN.

>> No.1828899

RIP OP