Investing $1.3M: Go Hedge Fund or Go Global?

Question

Hi guys, I just sold my condo, and I was curious as to what your opinion is regarding the way I should invest it. I am looking for a secure, nonliquid investment for about 1-1.5 years.

Thanks a lot.

Answer 1

There are many options available to you that do not necessarily require any certain commitment period or be locked-in at any one time.

Well, with $1.3m, you can have perpetual passive income by using the right financial tools. Using no-risk/guaranteed/fixed instruments in the market, Financial Planners actually know how to arrange it in such a way that you get to spend $10k every month and your principal of $1.3m is intact. (If you can take a little risk, of course you may earn more) Sounds too good too be true? Not at all, it is actually possible with today's many products in the market. You just need to know where are the right places to look.

Speak to a good Financial Planner and he will advise you accordingly.

Answer 2

Your time frame doesn't fit for either of the ideas you list. If you want something secure and want to protect your principal, go with CD's for that period of time. If you need a tax-free investment, buy some AAA insured municipal bonds for your specific time frame. Any kind of mutual fund, hedge or global included, can go down in value... especially in just a year and a half.

Answer 3

Invest in the stock market. I think the best way to invest is to see what the best traders are buying and selling. Hopefully, with this additional knowledge you can improve your portfolio's return. This is the idea behind http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

Answer 4

I would invest 33% of your total in the following three funds:

Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)
Vanguard Convertible Securities Fund (VCVSX)
Vanguard Global Equity Fund (VHGEX)

The asset allocation model provides broad diversification and relatively low volatility.

Answer 5

OK Mr Bigspender. We're all very impressed, I guess. Why would you try and get financial advice here for that amount of money? Aren't you the same guy that always asks about how to ask a girl to be your girlfriend?