I was in an accident and am about to receive $1 Million compensation how should I invest this...?

Question

Please d ont just say with me...lol

Answer 1

Hello. - Link Below. In my opinion, not only invest, but save.

Have a nice day. :)

Answer 2

VERY IMPORTANT!

Before you do anything go find a FEE ONLY advisor and sit down and figure out how that money will best serve you and your needs.

A fee only advisor is paid to help you form a plan for your money. They are not selling any products, only their time. This should cost you in the range of $150 hr or $1-2000K for a full plan (depending on what your needs are and how complex your situation is).

Invested wisely that money can last a lifetime but this is far too much for a do-it-yourself project. If you try to go it alone, odds are you'll spend through it very quickly.

There are also tax considerations that must be addressed including whether or not your settlement is taxable (this year) and the types of investments you should have to minimize ongoing taxes.

That's where the objective advice from a fee-based planner is going to end up both saving you, and making you money.

You can find a planner through either of these websites:

http://www.naifa.org
or by hunting down the local FPA association office via http://www.fpanet.org

Good luck.
Oh..and a little tip if it isn't already too late - don't tell your friends and family about the sudden wealth or they'll all have needs and "great investments" they'll want your help with.

Most lottery millionaires quickly lose it all. Yours may not be lottery money, but it is a sudden windfall with all the same potential for problems.

Good luck.

Answer 3

I suggest you to open a Private Bank Account and invest in the Stock Market with the help of a Portfolio Manager like myself.

After a year take half the profits and reinvest the rest.

That way, you will have more and more money every year.

Example:
You make 20% on the first year and you take $100,000.00 USD to buy a house, car or whatever and you invest the rest.

The second year you make the same 20% and you now take $110,000.00 USD to buy boat or whatever and you invest the rest.

On the oher hand, if you buy a $100,000.00 house, a $100,000.00 car and a $100,000.00 boat now you will run out of money in 5 years or less and you will have to sell your boat, car and house to survive the next years and eventually you will be broke again and the worst part is you would have to go back to work.

Drop me a line for more detailed FREE information.

Top 4 Answerer in Business & Finance. (Vote for me. I just need 200 more votes)

Answer 4

Educate yourself through reading. If you are willing to do this, then you can forego a "financial advisor": many in the profession are just guessing or gambling, anyway. Just try reading some of the Yahoo! finance columnists and the references they recommend. I like Jeremy Siegel, Ben Stein, Robert Kiyosaki, and David Bach. Or Suze Orman if you wanted a dumbed-down version. Do you want to go into business? If so, a good primer is to read Warren Buffett's Berkshire Hathaway annual reports.

What you should do with your money really depends on your goals. Here is an example of what you might want to do if your goal is to preserve the value of $1,000,000 :

1) Put 40-50% into fixed income, either US savings bonds, or Certificates of deposit (CDs). These will earn you ~5-6% on your money per year .
2) Put 20-30% into carefully selected "value" stocks or an index fund.
3) Put the remaining 20-60% into hard assets like land, real estate, precious metals, etc. which will retain their value in the face of heavy inflation. Rental properties can be good sources of income, if you are in the mood for a career change.

Good luck! And don't forget to tithe! :)

Answer 5

First, pay any medical bills. Second, pay any remaining debt (car, student loans, house, etc.). Third, put away about $10k into a money market account for emergencies cash. Finally, find a good investment advisor that will explain their recommendations. I think a good one will try to understand what your financial goals are and what level of risk you're comfortable with before making any recommendations.

I'd personally consider how you can help others (family, people that are less fortunate, etc.) and I would have some fun too (if you're able).

BTW, I'm sorry to hear that you were injured and hope that you're alright.

Scott.....

Answer 6

From what i have learned over the past years in adolescence, there is no "best way to invest it". BUT if you want to flip it to make some more out of it. I would invest into rental property, some people can make about 30,000 a month if u have rental property. BUT don't do 1 month rental lease agreements, do something like 1 yr rental lease, that way if they try to run their credit is screwed, also if u have a signed contract for a 6 month or 1 yr rental lease agreement then u can sue their *** if they break the contract

Answer 7

First, I'm sorry for the accident, it must have been pretty bad. Invest this money safely! Pay as little or no broker fees, and work with someone that you trust. I help people every day that do not want to lose money they have worked hard for or had to suffer to get. We charge no fees, and are not the middle man. I can help if you'd like. No pressure, just options.

Susan

Answer 8

Investing comes always with a risk, and personnally, I would be frightened to invest, especially in the stock markets. I wouldn't go overboard with your spending, because then in about 1 to 2 years, you could be broke again. You'll need to be very wise, and very tight with your money......it should last you the rest of your life. There is nothing wrong with going on a trip or nothing....but do you really need to buy a Ferrari, or a Lambroughini? Spend smart. The best advice I can tell you, is to invest in your future. Buy a house...cash. That way you don't need to make the payments and save the interest. The same with a vehicle.....buy it cash...you'll get better deals with each one if you buy them cash, plus you can tell them if they don't give you a great deal, you'll go somewhere else. They'll give in to you. Now with the rest of your money, I would advise you to put it in savings.....and in CDs....then you can take the interest from them and add it to your accounts. With that kind of money, you can actually live off of your interest that you earn. Utilize a CPA to do your taxes, he can provide you with the best tax write offs. Never buy anything on impulse. Think things thoroughly....and the main thing....stay away from Casinos. The odds are very much against you winning....they're there to make money....never forget that. So again, think things through before you spend.....and your money will last you a lifetime. Best of luck to you............

Answer 9

The biggest part should be in secure investments that have a slow but safe growth. A smaller percentage can be invested in short term, high yield, but risky investments. You truly do need an investment counselor that is licensed to advise you. One million may seem like a lot, but it can disappear faster than you can say "Enron".

Answer 10

If you are wise, you'd invest in your future, now in the present. Take your investment into something that will yield high interest outcome over the next few decades or so.

What you could do is invest in bonds and securities. Does your company have a 401k? Invest in that. There are just too many options.

Answer 11

The biggest and longest-lasting return for you to enjoy from that money would be a home of your own as free from utility bills as possible. One example would be a house bulit (either with conventional methods, or perhaps straw-bale...) which would utilize solar shingles, enabling your entire roof to convert the sun to energy. If you are near a year-round stream, it and/or a windmill could also generate electricity. A well and/or use of the stream, combined with a water conditioner and maybe a rainwater collection system would provide you with plenty of that.You could also use a woodburning furnace for supplemental heat. If you garden at all, consider a greenhouse for year-round fresh fruits and vegetables. search in your area and online for info about sustainable living. If you generate enough electricity, it can be sold to the local electric company. Good luck.