where is the best place to put $25 million?

Answer 1

I assume this must be a theoretical question. If you had 25 mil you would not have to be asking. You would already know. So here is the deal. With 25 mil you have to worry mostly about taxes, so if you are in need of an income stream from this amount you will desire to have a portion at least in tax free muni bonds to provide that tax free income flow. Depending on the amount you require somewhere between 2 and 3 mil ought to do it. The rest you want to propect against the raveges of inflation and the sinking value of the dollar. So you want to invest in equities, many of which are not tied to the U S dollar. Oil stocks are a fine place for a portion maybe as much as a mil. Another mil in Chinese equities. A mil in Euro equities. Maybe 1/2 a mil in Indian equities but these are a little steep at the moment. 2 mil in large cap U S equities. They should actually benefit from a falling dollar. Now this is one that is certainly subject some debate, but I think 1/2 a mil in Japanese equites. They certainly have not in the past performed all that well but, you want to invest in the future not the past. And China should want to unload some of their dollar hoard where it will do them the most good. And Japanese capital good will be a fine place to unload. That and U S capital goods. As much as 2.5 to 5 mil in t-bills. Nothing better than having a nice cash reserve on hand. How are we doing allocation wise? I have lost track.

Answer 2

"Muncie" and "Jim H" have some useful suggestions.

Put most the income portion of your cash in tax sheltered municipal bonds; possibly high-dividend common stocks such as BAC, C, CNE, MO, and PCU; and a little in treasuries for safety. Check with a tax accountant about how the AMT tax law affects the income from these securities before investing.

China is probably not a good stock market investment now, as the gov. is very serious about taking the market down a couple notches in order to prevent a crash.

I'd also take a portion of your cash relegated to the growth or speculation category and put it in a good hedge fund. I haven't seriously researched any since I don't have the 1 or 2 million minimum required.

Two famous hedge funds are "Renaissance Technologies" and ESL, Eddie Lampert's fund. Research those first.

Answer 3

With that kind of money, I'd be more concerned with capital preservation than with growth, so I would probably put it into 10-year U.S. government notes, which currently yield about 5%. That would give you an income of $1.25 million each year, with the guaranteed return of your principal at the end of 10 years. There is also a very liquid secondary market for these notes, so if you needed some additional cash, you would have no trouble getting it. Another advantage is that you pay no state income tax on U.S. debt instruments, although you do have to pay federal income tax.

Answer 4

If you are serious, please do not ask these questions on the net.

I am a former investment advisory principal and a doctoral student in financial economics.

If you have to ask this question, you need professional help.

Since I do not know where you live, I would recommend you visiting and Edward Jones brokerage office. I have never worked for them and I am not associated with them. They will keep you out of trouble and help you quite a bit. I might make different recommendations if I knew where you lived. Certain other firms are available in certain geographic regions.

I also STRONGLY suggest connecting with an estate planning attorney and a CPA.

Please ignore even the best advice on the net here.

If this is a serious question, although I am studying for my doctoral comps, I do not mind providing some minimal level of assistance. You could send me an e-mail through Yahoo Answers through the profile.

Answer 5

I would divide the amount into five different categories and manage each one separately.

The first category would be income. I'd put 30% of my assets into this category, and this money would be invested in things like tax-free government/municipal bonds, possibly through one or more no-load mutual funds. This would provide a continuous income stream that could be used for living on or funding new investments.

The second category would be capital growth. I'd put 30% of my assets into this category, and this money would be invested in quality, dividend paying domestic and international stocks that have good 5 year growth potential.

The third category would be speculation. I'd put 5% of my assets in this category, and this money would be used for short term stock and options trading.

The fourth category would be real estate. I'd put 25% of my assets in this category, and the money would be used for buying and managing various investment properties. (It might also include money invested in REITs.) With the housing bubble in effect, now's the time to start looking for bargains.

The fifth category would be giving. I'd put 10% of my assets into this, and establish an endowment program with a church, charity, or school that would act as an ongoing source of income for them into the future.

Answer 6

First principle. You have to own something. If you do not, theory is that your purchasing power must go down.
Second principle. Your best investment is in something you operate yourself. Start your own business or buy one, if you have a special field of expertise.
Third choice. Buy a business and let others operate it. You still need expertise to make this work.
Forth choice. Learn to buy stocks long. What makes this good is the liquidity.
Fifth choice. Buy no load index funds. You do this while acquiring the expertise to do something else.

Answer 7

Do your research, but I heard that Mutual Funds are the best way to go. A singer stated that his money is in Mutual Funds and he lives off the interest.

Answer 8

A Swiss mutual fund account set up with fixed financing. Just check your APR, should be around 6%.

Answer 9

Hedge Fund.

Answer 10

under your bed? and if you have 25 mill share the wealth