Want to invest inheritance of $360,000?

Question

need at east $1500. month to live on. What would you do?

Answer 1

$200,000 in CD's at 4 % interest. should give you the $1500 a month.. Put the rest in a mix of risk range investments to improve your odds of increasing wealth.

Small and midsize Stock FUNDs or INDEXED Funds.
International growth funds.
Gold mining stocks ( I like EGO)
Energy company stocks, (I like RTK, ACI, XOM)

Watch a taiwanese company called Quanta Computer
(See attached EDU Link pushing a UN funded project)
http://www.laptop.org/

http://www.quantatw.com/e_investment.htm

Answer 2

Hire a qualified professional to help you with this. Not the yahoos on the Yahoo answer boards. One answer already mentioned a great source to find someone that can help you--look for a CFP. A better question might be how do I find a good financial advisor?

One thing that no one has mentioned is your withdrawal rate: At 5% (1500*12/360,000) of your principal you are at the high end of the comfortable range for this principal lasting forever. What this means is that in the future, you risk not being able to take out an inflation adjusted $1500/month. In the future, it will cost more than 1500/month to cover the same expenses you cover right now for 1500.

A good advisor will walk you though the benefits and risks associated with several different options for your money. They include: a diversified investment portfolio, a laddered CD portfolio, a laddered bond portfolio, an immediate annuity, or a mix of any of the above. I question the need for any kind of deferred annuity. I also question the advice of any advisor that doesn't also try to learn more about your personal situation. What other assets do you have? What kind of liabilities do you have? What other sources of income do you have? What do you want to use this money for? Do you have any other financial goals? How does this money fit in with the other investments you have?

Good luck.

Answer 3

you want a return on your investment of 5%. This should be possible. You could invest in a canadian income trust. Some reasonably conservative corporations provide income trusts with returns of 8% which ahould easily provide 18000 after tax. Asuming you know nothing about income trusts, it would be advisable to purchase a mutual fund of income trusts to get safety through diversification

a high quality portfolio of common stocks, or mixed stocks and bonds could do the trick. You would probably be best served with a portfolio invested in high dividend companies.This could be achieved with mutual funds.You would withdraw your 1500 from the fund, dividends plus appreciation would cover the withdrawals and you would have an upside potential if the portfolio realized more than 5%. However the market fluctuates, and your asset could have bad years.

tax exempt municipal bonds do not curently provide 5% but come close. They are stable and safe, Buy and forget.

Depending on your age you could achieve your goal with a variable immediate life annuity. the annuity would pay monthly and the amount would rise over time with the results of the fund supporting the annuity. In this case you are using your capital as well as investment earnings. The income would continue until you died but there would be no remaining asset for your estate.

Any combination of the above that fitted your needs and risk tolerance level could work.

a financial adviser could review your needs and provide appropriate combinations of the above.

Your objective is reasonable and should be attainable.

Good luck.

Answer 4

Unless you're near death, a 5% money market product is not going to cut it. Yes, if you could get 5% for the rest of your life, you'd always be getting $1500 a month, but 40 years from now, that's not going to be worth much.

What I'm assuming you _actually_ want is $1500 a month inflation adjusted, i.e. $1500 in today's dollars.

GIC's do not provide inflation protection. I haven't done the math, but my gut is you don't have enough without taking on some short term risk to achieve your goals. However, with moderate risk, it is quite likely you will be successful. Talk to a CFP, as above poster's have suggested. A mixed investment portfolio that provides some growth in asset base combined with a payout would be appropriate.

If you want safety, buy TIPS (US Gov't securities with a pay out based on inflation).

Answer 5

Hi Mark,

Why not let me show you how to make money from money, I wouldn't want to see any of your money (it will be in your hands at all times).

How?

Let me show you how to play and win at poker - before you dismiss this, do you know if you play the game correctly, over time, you will be a guaranteed winner - there are odds on each set of cards and each hand, if you learn to play the best way, always play to the correct odds/percentages, in the long run, you do make money.

Is it hard to learn how to do it? You bet it is.

I can guide you through games whilst you play them online via msn chat.

What do I charge for this service? I only get paid if you win money, I ask for 30% (negotiable) of profits made only and only whilst I am training.

Once you think you know enough, you can go alone.

Some people even sponsor me to play for them.

Any way, its one way of making money whilst having a lot of fun.

You would not be looking at spending a lot, I play tournament poker where it is an initial buy in of say $100 or less on line or you can play live games that cost a lot more but the more you invest, the more you get out and at the same time, can travel the world.

Regards

Answer 6

How old are you?

I would Buy an Immediate annuity that would generate $1,500 per month for 10 to 15 years.

Then with the balance of the money put into a Fixed Index Annuity.

Take a look at http://www.jdsannuities.com to see how you can accomplish this.

Answer 7

I can only raise my hat in admiration to dirtyharry ! He has found something which has defied some of the greatest minds this century.

But if he has such sure-fire winning system, why is he looking for people like you to give him a percentage or sponsorship? Why is he not at the French Riviera with a blond on each arm?

Answer 8

go to cfp.net and choose pick a Certified Financial Planner. They will give you 2 or more to choose from in your area and they are the best people to help you with this issue. They are licensed and certified to be able to give you information

Answer 9

am green with envy! talk to a wealth manager they can advise you about the best way to invest ur money. good luck!

Answer 10

u should by the 160 acres I have for sale,split it into 3 acre lots and sell it for profits..