Steady 4-5% annual return on $5 million
- Thread starter One Time
- Start date
It appears that you took that straight from "Rich Dad, Poor Dad". The concepts in that book are great, but the numbers/figures as far as investing go are outdated. Kiyosaki wrote that pre-recession. Those numbers are much lower now.
I suggest that you take guerilla's suggestion about the CDARS. I've heard good things about it on other forums in the past, and if the consensus is yes, the answer is typically yes.
Real estate is also a great choice in the nation's current state (all of this assuming that you're living in the US). property is at a boom, and if you hold onto it long enough for materials and labor costs to go back down, it will soon be the perfect time to build, and eventually the perfect time to buy. Maybe look into making some apartment buildings, getting loans and using your $5 million as collateral.
But if you think about it, if you can find something that yields you 3%, that's an extra $150,000 per year for you to play around with, and you can just let that five million sit in the bank and mature, banking from the interest annually and playing your marketing game up your way on your time, without having to worry about it paying the bills.
The lavish lifestyle is for the weak. Read up on "The Four-Hour Workweek" for more about this.
Insurance annuities should be around 6% or so even now.
Bonds are around 4% or so , which is pretty good for bonds (I'd never touch em).
Personally, I'd look something more towards REITs and other types of trusts , maybe gas/oil trusts. $1m, $5m is quite a bit to play with, and 5% is very reasonable.
Bonds are around 4% or so , which is pretty good for bonds (I'd never touch em).
Personally, I'd look something more towards REITs and other types of trusts , maybe gas/oil trusts. $1m, $5m is quite a bit to play with, and 5% is very reasonable.
Please......please..........please do not buy tax lien certificates , it's the easiest way to get anally raped in real estate.
Seriously, I've done valuations for large companies buying them & foreclosing on properties ,everyone LOVES to talk about the 16% return , or the like, but you'd be amazed at how many times you end up with a property that no one will ever buy ,making the cert worthless. You can make money doing it , but it's much more difficult than you'd imagine.
Look into real estate in stable markets, bought at a discount, then managed as rentals , a good investment can return 40%.
For instance I live outside of Columbus Ohio, where there's a surplus of vacant properties that were repo'd due to people not paying. There's a total citywide vacancy rate of 5% or so.
I can buy an 'average' 3br 1ba home in a 'working class' neighborhood (of half rentals, half long term owners) for $25k or so. My max investment is around $35k per property post repairs, and rental income should be something like $600 or so per month. On a 100% cash investment, you'd have around a 6-7 year simple payback , not including appreciation or repairs. If you leverage it at a 80% LTV , your actual investment is 7k , which should repay itself within 18 months (Around 66%/yr). There's dozens of cities that have great , highly profitable rental markets, but you have to look for them and find a good manager.
Cash Gifting Programs | Cash Gift Training
Boom! Turn 5 million into 10 million practically over night. Can't fail!
I second that, the Australian economy is probably the safest in the world right now. It was the only country in the developed world that did not go into recession. Australia has a very good banking system and very rich in natural resources that is high in demand from Asia. In Asutralia they have been puting up interest rates a lot to slow down the economy and they will continue to raise the rates this year. The Australian dollar will keep rising against many other currencies this year in my opinion.
TIPS
United States Treasury security - Wikipedia, the free encyclopedia
Equities, hedge funds, real estate, etc all provide appreciable risk no matter what anyone says. If you are in asset protection mode, as it sounds you are, you're going to end up in the fixed income arena. Your biggest enemy in fixed income is inflation. You might very well achieve your targted interest rate in today's dollars, but 10 years from now there is a very good chance the purchasing power of your income stream will greatly decrease... espeically the way the Fed is acting.
TIPS protect you against inflation. Don't listen to gold bugs touting it as a hedge against dropping dollar.. deflation would cream gold prices.
Whatever you do, don't invest it with anyone promising steady 12% returns using split-strike option strategies or with a banker who is into cricket.
United States Treasury security - Wikipedia, the free encyclopedia
Equities, hedge funds, real estate, etc all provide appreciable risk no matter what anyone says. If you are in asset protection mode, as it sounds you are, you're going to end up in the fixed income arena. Your biggest enemy in fixed income is inflation. You might very well achieve your targted interest rate in today's dollars, but 10 years from now there is a very good chance the purchasing power of your income stream will greatly decrease... espeically the way the Fed is acting.
TIPS protect you against inflation. Don't listen to gold bugs touting it as a hedge against dropping dollar.. deflation would cream gold prices.
Whatever you do, don't invest it with anyone promising steady 12% returns using split-strike option strategies or with a banker who is into cricket.
You might want to look at Real Estate Investment Trusts, they pay great yields and are relatively secure investments.
There's a lot of different ways to make money with that kind of cash.
PM me if you need a good financial adviser.
There's a lot of different ways to make money with that kind of cash.
PM me if you need a good financial adviser.
Wow. I was prepared for a whole bunch of dickrolls and scarcely any decent advice, but I'm shocked shocked to find the opposite.
There's plenty here to get me started on research. For everyone who took the time, thank you. I really appreciate it
Please keep the advice coming if you have more.
There's plenty here to get me started on research. For everyone who took the time, thank you. I really appreciate it
Please keep the advice coming if you have more.
