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Started By
Message
Advise on Large sum payout
Posted on 11/17/14 at 9:41 am
Posted on 11/17/14 at 9:41 am
(no message)
This post was edited on 6/11/15 at 9:00 am
4
Posted on 11/17/14 at 9:52 am to TigerSaint1
What was annual salary before injury?
Posted on 11/17/14 at 10:11 am to TigerSaint1
quote:That's a pretty significant "around." Living off of a lump sum amount of $1 million would have a totally different approach than having $2 million to invest.
around 1Mil-2mil
There are many details you'd need to give, which you probably should not divulge on a message board, about your life, such as your age, debt obligations, former annual compensation and monthly payments before anyone could give you realistic, and prudent, advice on how to invest your money.
Like you wrote in your OP, you probably need to talk face to face with an investment professional who you share those types of information with.
Now your next question is: how to find a reliable investment adviser who won't take fees from you without much in return?
Good luck with that. Just don't sign any long term, non-cancellable, without penalties contracts.
Posted on 11/17/14 at 10:24 am to LSURussian
(no message)
This post was edited on 6/11/15 at 9:16 am
Posted on 11/17/14 at 11:02 am to TigerSaint1
quote:
This person could live off of 50K/yr. No debt.
Then they are set. If they can live off of $50,000 per year and they get 2 million, that allows their nest egg to grow for even more security.
Posted on 11/17/14 at 11:08 am to I Love Bama
Bama, for some diversification I'm surprised you didn't say to buy a couple rental properties.
Posted on 11/17/14 at 11:11 am to TigerSaint1
Probably not something he wants to deal with if he is disabled.
If I had 2MM to invest in RE I have no doubt I could double in 5 years though.
If I had 2MM to invest in RE I have no doubt I could double in 5 years though.
Posted on 11/17/14 at 11:30 am to TigerSaint1
That is a pretty easy task to produce income of that level on the sum of money. Good luck.
Posted on 11/17/14 at 11:43 am to Janky
Would you just put it into Annuities, index funds, blue chips and some and mutual funds and receive a monthly dividend check?
Posted on 11/17/14 at 11:49 am to TigerSaint1
quote:
Would you just put it into Annuities, index funds, blue chips and some and mutual funds and receive a monthly dividend check?
I am sure there are going to be many here that disagree. At this level I would suggest a fee based advisor. I also think this is where active management comes into play. In my opinion, we don't know near enough info to be able to give specific ideas.
This post was edited on 11/17/14 at 11:53 am
Posted on 11/17/14 at 12:00 pm to TigerSaint1
quote:Okay, that's important information.
It honestly isnt for me but for someone really close to me. This person could live off of 50K/yr. No debt.
He could easily make $50K/year off of $2 million just by investing in blue chip, dividend-paying stocks. He could do it with $1.2 million if he wasn't overly worried about prudent diversification, which I'm always aware of doing.
I've put a small part of my stock portfolio into those types of stocks and when I first did it I was getting over a 5% dividend yield.
Since then the stocks have appreciated in value so my yield based on current market prices is slightly less, but with the dividend increases that have occurred, my annual dividend amount has increased nicely. And my cost basis adjusted dividend yield is approaching 7%.
This post was edited on 11/17/14 at 3:05 pm
Posted on 11/17/14 at 12:04 pm to TigerSaint1
How old is this "someone"?
Posted on 11/17/14 at 12:07 pm to Odinson
30
Posted on 11/17/14 at 1:26 pm to TigerSaint1
Definitely seek professional assistance....not from a retail type investment advisor in a strip mall. Age is the key factor: if you were trying to live off interest from age 55 to death, it's a far easier proposition than from 30 to death (assuming this accident isn't going to truncate his life span). $50K/yr seems fine today, but inflation, family growth (spouse, kids, taking care of elderly relatives), etc will drive up future expenses. He should live on as little as possible, esp in the early years. Let the money grow.....
And, if this settlement doesn't preclude other work, go get a job ASAP, or start re-training for a line of work allowed by the disability.
And, if this settlement doesn't preclude other work, go get a job ASAP, or start re-training for a line of work allowed by the disability.
Posted on 11/17/14 at 1:58 pm to hungryone
Solid info and advice
Posted on 11/17/14 at 3:13 pm to TigerSaint1
70% stocks
20% bonds
10% cash
20% bonds
10% cash
Posted on 11/17/14 at 3:22 pm to makersmark1
That's a lot of cash. Are you talking money market?
Posted on 11/17/14 at 3:35 pm to Janky
quote:
That's a lot of cash. Are you talking money market?
Yes.
I figure he has to live on this so having the cash covers emergency fund, etc.
Posted on 11/17/14 at 3:36 pm to makersmark1
Money market as in regular savings account?
Posted on 11/17/14 at 3:47 pm to makersmark1
quote:
Yes.
I figure he has to live on this so having the cash covers emergency fund, etc
Ok.
This post was edited on 11/17/14 at 3:50 pm
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