My cousin inherited $3 Million dollars. What should be his best investment strategies?

Answer 1

1. Dont go looking for a wise 'guru'. The world is full of 'trustworthy' looking people in the guise of real estate agents, accountants, neighbours, who would love to separate your friend from his cash. Your friend should only do a thing if he understands it fully, and has it under his legal control.
2. Protect the value of the money against inflation. If your friend puts his money in a low interest bank account for say 10 years, inflation will probably have cut its purchasing power in half.
3. Diversify. The risk of losing your friends money is less if he spreads it across say 10 or 20 different investments rather than all in one basket. The investments themselves should be things that tend to grow in value over time such as shares or property. If it was me I would take an amount out of the capital to buy a house, car, furniture, and then invest the rest to keep me comfortable for the rest of my life - say 30% fixed interest, 20% property trust, and 50% across 10 or 15 shares in large companies that pay dividends, and live off half the interest payments after tax (leave the other half in the bank to cover inflation), any distributions from the property trusts, and any share income.
4. Dont fall into the trap of thinking it will last forever and waste it all on gifts and whims. It is really hard to accumulate the type of money that frees you from having to work, so it is really important to preserve the capital, and live within the income. Good luck to your friend.

Answer 2

He needs to visit three or four people:

1) A trust officer at a Trust company or Trust Department of a commercial bank.

2) An estate planning attorney whose specialization IS estate planning, not simply just writing wills.

3) A CPA, Tax Attorney, or Enrolled Agent.

4) A life insurance agent from Prudential, Metropolitan, Northwestern Mutual, New York Life or a well respected fraternal benefit society like the Knights of Columbus if he is Catholic, or GCU if he is a Greek Christian etc. Fraternals do not pay income taxes, they are like insurance companies in all other respects, but their rates are many times better for the good ones because they pass the tax savings directly to members. However, fraternals are like credit unions, you have to share a common bond to join. Certain taxes can be made to disappear with careful use of life insurance. However, IT IS VERY IMPORTANT to get competitive quotes.

Outside that, your cousin needs to set up life long goals for the money that others can measure and try to meet.

If you are asking this type of question online, no strategy can be competently recommended. Three million dollars is not a lot of money but with prudence it can bring a lot of happiness.

Answer 3

First, he should clean up any debt. Specifically credit cards. It is ok to keep some debt on the mortgage so you can put your money to work.

After that it depends on his invement knowledge. Most people with that much would hire an advisor to take care of it. With that much money, they also would qualify to put money into some large hedge funds, which are very popular right now. If he wants to manage it himself, he should diversify it among stock index funds, a mix of international stocks and ETFs, and keep some in bonds or cash.

He could also start looking into various real estate markets. There is a lot of inventory out there right now. Interest rates are still attractive, and he could probably find sellers who are willing to drop their price. The key here is finding a good location.

Hope this helps!

Answer 4

A variety. That's enough money that he can do pretty much every different strategy at once. He should invest in stocks, bonds, mutual funds, real estate, and anything else he can think of. I agree with the guy who said to hire an expert.

Answer 5

First rules of investing;

Don't seek investment advice from strangers, especially people whose qualifications and motives can never be known.

Never (ever) buy investment products from Banks or Insurance Companies.

Always, 100% understand what and why you're getting into an investment.

Have an "Asset Allocation" plan that works for you (before one penny is invested).

Answer 6

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/e3f14

Answer 7

For me, I'd live off the interest. 1% is 10,000 ... times 3 is 30K. If it's 2% it's 60K. So I'd find the bank with the highest interest rate in the country ... then if possible have the annual interest put into a separate account. He could save or invest that. I'd probably save for a couple years then use the interest money to go to school overseas or something.

Answer 8

He needs to see a Certified Financial Planner and an estate planning attorney. What they will advise him to do will depend upon his age, health, family situation, needs and desires. Every person is different, and no advice to any one person will necessarily work for another. He'll spend a few thousand dollars up front. However, it will save him tens of thousands or hundreds of thousands of dollars later.

Answer 9

That's a wad of money. If his bills were all paid, he could invest in a mix of CD's, Bonds and some Stocks. With the CD's he could live off the interest.

Answer 10

To interview several financial advisers and select the best . . .
To not have the cousin do the homework . . .
(unless the inheriting person is indigent and you are the estate manager)

>