Re: Question: If a $1 million windfall … - Posted by Jim (MD)
Posted by Jim (MD) on October 22, 2003 at 14:57:11:
I would stick with what I know and therefore invest in the following: stocks (which include REITS and other closed end finds), corporate bonds, tax free government bonds, mutual funds of all types, CDs, real estate, mortgages, and tax sale liens and certificates. All of these would be a buy and hold strategy.
If I needed a different job, I would buy a business. I consider real estate rehabs, real estate development, flipping, and other short term strategies to be a business, just as the IRS does. Of course they would all be possibilities, that is if I wanted to enter a business.
I would not invest in taxable government bonds, zero coupon bonds (where one is taxed each year on interest not received until the bond is sold or redemmed), annuities (not good for high income or high net worth people), or options and commodities (not my cup of tea). The asset allocation would vary depending on market conditions and opportunities I am able to find. If I did this for ten years, I would never, ever have to touch the principal, even if I got a new mistress. lol
If one is not familiar with their investments I suggest they seek outside counsel such as an attorney or family member experienced in such matters. If one wishes to dabble in stocks and or mutual funds, I recommend a stockbroker for assets allocated to that segment, not merely a financial planner.