You have $1,000,000. Invest it.

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Hey Folks,

I always enjoy these investment threads. I don't believe I've ever seen one for $1,000,000 and I'd be interested to see the answers.

I'll chip in with my own answer soon enough. But, for now:

You have $1,000,000. Invest it.



GRM
#invest
  • Profile picture of the author Adrianhenry
    I think the answer to this question is dependent on your age. As I am 22 I would probably go quite heavy into equities and the rest in bonds, maybe 70/30 in favour of equities. I would want a well diversified portfolio so would either spend a long time drawing it up or just invest in index tracking ETFs.

    To be well diversified I would probably use tracking ETFs for both equities and bonds, the decision would just be which ones to choose.

    Of course for someone slightly older they probably don't want to go quite so heavy on equities and maybe settle for a more even split of bonds and equities but as I have so much time ahead of me being equity heavy seems like a good idea.
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    • Profile picture of the author jhanley
      Originally Posted by Adrianhenry View Post

      I think the answer to this question is dependent on your age. As I am 22 I would probably go quite heavy into equities and the rest in bonds, maybe 70/30 in favour of equities. I would want a well diversified portfolio so would either spend a long time drawing it up or just invest in index tracking ETFs.

      To be well diversified I would probably use tracking ETFs for both equities and bonds, the decision would just be which ones to choose.

      Of course for someone slightly older they probably don't want to go quite so heavy on equities and maybe settle for a more even split of bonds and equities but as I have so much time ahead of me being equity heavy seems like a good idea.

      I wouldn't if I were you Adrian. The whole financial system is a house of card waiting to collapse right now. Put you money into gold or silver. The real stuff not phony certificates! Especially not bonds for gods sake. The Fed will be increasing rates early next year because they have no other choice and then all hell will break loose.
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      • Profile picture of the author Adrianhenry
        Originally Posted by jhanley View Post

        I wouldn't if I were you Adrian. The whole financial system is a house of card waiting to collapse right now. Put you money into gold or silver. The real stuff not phony certificates! Especially not bonds for gods sake. The Fed will be increasing rates early next year because they have no other choice and then all hell will break loose.
        I agree but for someone of my age the fluctuations in the market are of little significance as long as you keep trickling money into the market you will always net gain in a lifetime barring of course a literal collapse of the entire capitalistic paradigm (which I do admit is looking increasingly likely year on year )
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        • Profile picture of the author prosperity4all
          I would do a few things if I had access to funds in that ballpark.

          I would find a good financial planner. I would give a chunk to my local church. Give some to my family and then look to invest in some startups...working with new entrepreneurs that are where I used to be is a pretty exciting concept and a good opportunity to make some money while giving back.

          I know I probably didn't your question along the lines of what you were looking for but these were some of the first thoughts that came to me when I clicked on this thread.
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          • Profile picture of the author Tom Addams
            Originally Posted by prosperity4all View Post

            I would do a few things if I had access to funds in that ballpark.

            I would find a good financial planner. I would give a chunk to my local church. Give some to my family and then look to invest in some startups...working with new entrepreneurs that are where I used to be is a pretty exciting concept and a good opportunity to make some money while giving back.

            I know I probably didn't your question along the lines of what you were looking for but these were some of the first thoughts that came to me when I clicked on this thread.
            You most certainly did answer it; and you did so expertly. Great answers!

            Particularly like "give a chunk to my local church" and "working with new entrepreneurs." Like yourself, I'm not able to spare a million bucks for either of these two endeavours now, but I enjoy doing what I can for the moment. I won't get too much into the church aspect (since religion often causes disputes in public) but I can comment on the latter. Some of the most fun I actually have is helping new entrepreneurs. I love the energy, the free flow of ideas, seeing something rise out of the dust and, we hope, stand tall.

            Great stuff!

            GRM
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      • Profile picture of the author seasoned
        Originally Posted by jhanley View Post

        I wouldn't if I were you Adrian. The whole financial system is a house of card waiting to collapse right now. Put you money into gold or silver. The real stuff not phony certificates! Especially not bonds for gods sake. The Fed will be increasing rates early next year because they have no other choice and then all hell will break loose.
        GOOD POINT! NOBODY will buy a $5000 bond at 1% if they can buy a $5000 bond at 5%. So HOW do they sell them? They lower the principle by over 4%! So expect bonds to DROP in value by some time next year. And Bonds are purchased because the income is predictable, If you buy them AND HOLD THEM, the income will stay at that stated unless the bond is called or the payer defaults. If you buy a mutual fund, they may buy and sell such that you are subjected to the cut in principle I mentioned.

        That ALSO may cause EQUITIES to drop. And that isn't even taking into account the decline in the dollar, etc... I was shocked yesterday, I compared the dollar against some currencies. It looks good against the euro, pound, german mark. The Russian rubble recently started dropping like a stone. BUT.......The dollar dropped a LOT against the chinese yuan!

        Steve
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  • Profile picture of the author salegurus
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    • Profile picture of the author Adrianhenry
      Originally Posted by salegurus View Post

      Don't take this the wrong way Tom but WHY?
      Why do you find these pie in the sky if you had X,Y,Z threads so interesting?
      Most of the people on this forum don't even have $1000 to invest, never mind $1M,
      the Main forum is already stuffed to the brim with garbage as is.
      I think its just an interesting discussion to get peoples perspectives on the global markets and just get an interesting discussion about financial intelligence going (which in my opinion is something that is lacking in a lot of modern society as it is never taught in school unless you take a financial course).

      Its just intriguing to get everyones opinions on this sort of thing. Especially when this is a forum dedicated to ultimately making money and when you do make that money people should have the knowledge of what to do with it because just letting it sit in a bank account is about the worse thing you could do.
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      • Profile picture of the author Tom Addams
        Originally Posted by Adrianhenry View Post

        I think its just an interesting discussion to get peoples perspectives on the global markets and just get an interesting discussion about financial intelligence going (which in my opinion is something that is lacking in a lot of modern society as it is never taught in school unless you take a financial course).

        Its just intriguing to get everyones opinions on this sort of thing. Especially when this is a forum dedicated to ultimately making money and when you do make that money people should have the knowledge of what to do with it because just letting it sit in a bank account is about the worse thing you could do.
        This.

        I couldn't have said it any better.

        GRM
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  • Profile picture of the author pin9211
    I don't have even 7$ to renew my domain and you are showing me 1000000$ box which is not mine and not real too. GRM
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  • Profile picture of the author Alexa Smith
    Banned
    I'll use half the sum for intraday, weekday afternoon forex-trading, during the overlap hours that both Europe and NY are "open", limiting my position-size to a maximum of $10,000 (2%) per trade - so if I trade with a 25-pip stop-loss, I'll trade lot-sizes which equate to $400 per pip after dealing costs. (I don't mind telling you that I've never actually made a trade that size, or anywhere near it, at all.)

    I'll invest the other $500,000 in up-market, residential, well-managed rental property (might stretch to two decent apartments, depending on location?) in non-Eurozone countries with stable economies and governments and in which the markets have already regained about 5% from their market-slump values.

    Looking forward to seeing your plans for this lucre, Tom.

    Originally Posted by Adrianhenry View Post

    I think its just an interesting discussion to get peoples perspectives on the global markets and just get an interesting discussion about financial intelligence going (which in my opinion is something that is lacking in a lot of modern society as it is never taught in school unless you take a financial course).
    I looked at it this way. To be honest, I'd far rather see threads like this than "Where should I sell my six-letter .info domain-name?" (which somehow always turns out to be one for which I wouldn't, myself, have paid reg-fee.)

    .
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    • Profile picture of the author Adrianhenry
      Originally Posted by Alexa Smith View Post

      I'll use half the sum for intraday, weekday afternoon forex-trading, during the overlap hours that both Europe and NY are "open", limiting my position-size to a maximum of $10,000 (2%) per trade - so if I trade with a 25-pip stop-loss, I'll trade lot-sizes which equate to $400 per pip after dealing costs. (I don't mind telling you that I've never actually made a trade that size, or anywhere near it, at all.)

      .
      I look forward to the day I can have a $400 a pip position with a 25 pip SL, waking up to find my 60pip target was hit. Those will be the days
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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by salegurus View Post

        i see my post was nuked.
        Ooh, I'm very surprised indeed. However, it can be held that in a forum subtitled "where Warriors talk about making money" such threads are perfectly legitimate, and perhaps especially on a Friday afternoon, Theo?

        Originally Posted by Adrianhenry View Post

        I look forward to the day I can have a $400 a pip position with a 25 pip SL, waking up to find my 60pip target was hit. Those will be the days
        Something like that, yes (except that you have a far more widely accepted risk/reward ratio than I trade with: I aim for a high strike-rate with equidistant SL and TP, to be honest. In fact, to be fully honest, I don't ever have a SL as wide as 25 but I'm used to not saying so too openly in case people laugh ).

        And I don't ever "wake up to find" because I don't hold positions overnight. I like to sleep.

        .
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        • Profile picture of the author Adrianhenry
          Originally Posted by Alexa Smith View Post

          Something like that, yes (except that you have a far more widely accepted risk/reward ratio than I trade with: I aim for a high strike-rate with equidistant SL and TP, to be honest. In fact, to be fully honest, I don't ever have a SL as wide as 25 but I'm used to not saying so too openly in case people laugh ).
          Ive experimented a lot with high strike rate, 1:1 risk/reward and lower strike rate with higher risk/reward and on various time frames. Although I prefer the more instant gratification of high strike rate on lower time frames I am considerably more consistent and profitable with higher time frames and better risk/reward. All personal preference though, whatever works for you.

          I think a lot of people tend to ramble on about risk/reward ratio too much as if its the holy grail. They don't seem to understand the interplay of risk/reward and strike rate. Ultimately a risk of 100pips to win 10pips can be profitable if you are right 91% or more.


          Originally Posted by Alexa Smith View Post

          And I don't ever "wake up to find" because I don't hold positions overnight. I like to sleep.
          I always adhere to the "pillow test" where if I cannot sleep while I have a position then my position is probably too large. If you have set your SL and TP and you risk is something you can handle then sleeping should be no issue. For me at least
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          • Profile picture of the author Alexa Smith
            Banned
            Originally Posted by Adrianhenry View Post

            I am considerably more consistent and profitable with higher time frames and better risk/reward.
            Can't argue with that, then. (All the forex professionals I know would say that your approach is clearly the more sensible and reasonable one, anyway ).

            I admit to having a macabre fascination with Bob Volman's forex techniques (this isn't my trading method, though, at all!).

            Originally Posted by Adrianhenry View Post

            I think a lot of people tend to ramble on about risk/reward ratio too much as if its the holy grail.
            Yes, I agree completely.

            Originally Posted by Adrianhenry View Post

            They don't seem to understand the interplay of risk/reward and strike rate. Ultimately a risk of 100pips to win 10pips can be profitable if you are right 91% or more.
            They're all non-statisticians who have read those "guidebooks" which informed them how important it is to "cut losses early and let profits run" (not that that's intrinsically bad advice, for many trading-styles: it's just oversimplified and has exceptions, in my view).

            Originally Posted by Adrianhenry View Post

            I always adhere to the "pillow test" where if I cannot sleep while I have a position then my position is probably too large.
            I always relate to this in percentage terms only and without looking at the amounts of money. As against that, I never entirely trust SL's in case of "weird spikes" and so on. I think being a touch on the Asperger-ish side, and a skepchick, are both actually quite valuable for trading.

            .
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        • Profile picture of the author Enfusia
          There are several spots around the world where their banks will give you 12% per annum with earnings paid monthly into a separate account.

          As an example: A particular bank in Mongolia will do so and back your money in precious metals. So, it they lose your money they give you the equal value of metals. You can also choose to have it backed in oil contracts as well.

          Others would be: Chile, who will give 12% for a 500K invest and back it in land holdings. Ecuador; a bank in Quito will go 11% and backs it with stock ownership in the several companies they own (one being a shipping co.).

          With the earnings of say 120k per year I would invest all of it (live off my other incomes) into projects like Panama's Teak reforestation project. Fantastic investment with great returns and gets you citizenship too.
          That's just one, there are many.

          Patrick
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          • Profile picture of the author whateverpedia
            Originally Posted by Enfusia View Post

            A particular bank in Mongolia will do so and back your money in precious metals. So, it they lose your money they give you the equal value of metals. You can also choose to have it backed in oil contracts as well.
            That hardly sounds like a secure investment.

            What happens if the $US (I assume you're based in the US) appreciates against the Mongolian currency? The 12% return suddenly becomes a whole lot less.

            Backed by gold? Well, traditionally when the US$ rise the price of gold falls, so you're getting a double whammy. Same thing if the oil price falls substantially.

            However if the US$ falls in value, the double whammy works in your favour.

            It's a higher than normal risk, and one that you definitely can't "set and forget".

            Me, I prefer to invest in value stocks. I've been doing it since 1992, and have achieved an annualised rate of return on my portfolio (as at close of trade on Friday afternoon) of 27.39% p/a. That is purely on the Australian stock market.

            During that time frame I've "endured" the following:

            1997 Asian meltdown;
            2000 Tech wreck;
            2001 9/11
            2002 Enron dragging the world down with it;
            2008/9 The Global Banking Meltdown.
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  • Profile picture of the author gamestoenjoy
    If I add money to invest, I would work on my existing game site, buy a lot of traffic to it, sponsor many new games and buy additional game sites to create a game network.
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  • Profile picture of the author salegurus
    Someone obviously disagrees, i see my post was nuked. If you can't beat them, join them....
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    • Profile picture of the author lgibbon
      Banned
      Originally Posted by salegurus View Post

      Someone obviously disagrees, i see my post was nuked.
      Very surprising that, you were spot on.
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      • Profile picture of the author ElGuapo
        I'd like to own a piece of various low-budget movies. That's more a labour of love than smart market investing, but damn, you hit the jackpot by backing the next Paranormal Activity or Blair Witch Project.
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        • Profile picture of the author Tom Addams
          Originally Posted by ElGuapo View Post

          I'd like to own a piece of various low-budget movies. That's more a labour of love than smart market investing, but damn, you hit the jackpot by backing the next Paranormal Activity or Blair Witch Project.
          Now.

          On the same page, we are, as Yoda might inform.

          I began writing screenplays around 15 years ago. I did nothing with them, other than foist them on friends and family, until around half a decade ago. It was around that time that I began using what I know about online marketing to connect with independent filmmakers. I soon had a bunch of connections and some of them, to my delight as a horror fan, were well-known folks in the horror industry: filmmakers, producers, writers, actors, even folks in the haunted house industry.

          In the beginning, I did little more than amuse some of them with social updates. Before long, though, being a published writer of prose, I began talking about the writing craft and offering up the odd (usually decidedly odd) tidbit. It went down well and I found myself being approached to write screenplays. I hadn't been concentrating on scripts at the time, writing novels and novellas instead, but I found being approached to be truly flattering and it compelled me to dive back into screenplays.

          Now the folks asking for scripts had no money to pay a screenwriter. Heck, they had no money to feed the crew. But I didn't care. Just finally seeing ideas borne of my imagination there on the screen (not the big screen, of course) was such a pull, such a thrill, and to me, such an honor. So I put together a script. Wrote it for a no-budget production and pretty soon I was being approached again; this time by a chap who'd worked on some decent projects in the 80s, projects of which I was a fan, and before long I was writing again.

          Upshot to all this rambling (that no one gives a flying monkey about) is this: Indies need inverters and you can pick up some great deals. I wouldn't go into it hoping to make money, but a few K will buy you a heck of a lot of fun and something pretty awesome to show for it. At the moment, I see film investing more as a high-priced hobby, like buying, I don't know, something groovy for the office. You can sit down with your buds and say, "Check this. I helped make this happen!"

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  • Profile picture of the author Tom Addams
    Investment #1 : Happiness

    I'm going to chip in a few investment ideas. My first one: Happiness!

    My daughter, who's always been a kind, generous soul, began encouraging me this year to devote some of my time to charities. I'm a great believer in learning from others, and by listening to a precocious 14 year-old in this case, I was rewarded with a wealth of important knowledge. (Incidentally, her latest charity drive involves shaving away all of her beautiful locks to promote cancer awareness; I cringe at the thought, since dad's worry about bullying, but luckily she appears to be setting in motion a group hair shaving effort.) As a family, we do what we can, often devoting weekends to various causes.

    So! Investment #1 : Happiness. Whoever said money doesn't buy happiness was either rich enough to make Bill Gates jealous or - and I'm betting this is more likely - had never been confronted with poverty. We live in a nice area, my family and I. I grew up here and, though I've left to be an expat on numerous occasions, I always return and I'm always happy that I did. It's home. But one of my problems is living in a sort of bubble. I spend most of my time around the house and around the marina here and when I do venture into town, I'm the type of guy (I think like most guys) who knows just what he wants, goes and gets it, then returns home. I hate waiting in line. Can't abide window shopping. And whoever invented eCommere - well, thank you very much, indeed.

    Trouble is, bubble folk like myself, you miss stuff. And we're not talking the little stuff. Big stuff. You miss the poor guy sat in a shop doorway at the end of town, trying to keep warm by cuddling his bone-thin dog. You miss the young woman outside of Mark's playing a flute - and beautifully - and hoping to receive enough change not to go hungry, more hungry. You miss people, well-dressed people, who turn the other way when plaintive hands are reaching out. You miss a lot of big stuff like this. Oh, and it gets worse. When you sit on your can all day like me, and when the cupboards are full, you get to being obsessed about "staying in shape." And, not to blow my own trumpet, but I'm in killer shape for 39. Thing is, though - what a load of rubbish. Killer shape. Seriously, Tom. When you stand behind a counter and hand someone a plate of food and that someone has this thousand yard stare and you know that stare comes from more than being hungry but feeling hopeless and lost and in despair, when you do that, you understand how being in shape, killer shape (mostly, let it be known, to convince my daughter that I'm a local superhero; and, at 14, I don't think she believes me anymore), well, you understand the shallowness of it.

    The bubble bursts.

    So, my first investment suggestion, idea, whatever you want to call it: Find a way to make people happy.

    It doesn't actually cost a million bucks of course (cups of coffee are cheap, so's a meal, so's a blanket) but a million bucks can make a major difference.

    When I have it to spare, I'm going to put it to good use. I hope you will, too.

    GRM
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    • Profile picture of the author seasoned
      Originally Posted by Get Rich Methods View Post

      Investment #1 : Happiness

      I'm going to chip in a few investment ideas. My first one: Happiness!

      My daughter, who's always been a kind, generous soul, began encouraging me this year to devote some of my time to charities. I'm a great believer in learning from others, and by listening to a precocious 14 year-old in this case, I was rewarded with a wealth of important knowledge. (Incidentally, her latest charity drive involves shaving away all of her beautiful locks to promote cancer awareness; I cringe at the thought, since dad's worry about bullying, but luckily she appears to be setting in motion a group hair shaving effort.) As a family, we do what we can, often devoting weekends to various causes.
      Your daughter sounds nice! I actually had a barber, for some dumb reason, shave off all my hair, MAN, I HATED IT!

      So! Investment #1 : Happiness. Whoever said money doesn't buy happiness was either rich enough to make Bill Gates jealous or - and I'm betting this is more likely - had never been confronted with poverty. We live in a nice area, my family and I. I grew up here and, though I've left to be an expat on numerous occasions, I always return and I'm always happy that I did. It's home. But one of my problems is living in a sort of bubble. I spend most of my time around the house and around the marina here and when I do venture into town, I'm the type of guy (I think like most guys) who knows just what he wants, goes and gets it, then returns home. I hate waiting in line. Can't abide window shopping. And whoever invented eCommere - well, thank you very much, indeed.
      WELL, I have had a lot of money at times, and have been far from happy. I've been poorer and happier. I have known people that have ALWAYS been poor and have been happy. There isn't a one to one correlation.

      Trouble is, bubble folk like myself, you miss stuff. And we're not talking the little stuff. Big stuff. You miss the poor guy sat in a shop doorway at the end of town, trying to keep warm by cuddling his bone-thin dog. You miss the young woman outside of Mark's playing a flute - and beautifully - and hoping to receive enough change not to go hungry, more hungry. You miss people, well-dressed people, who turn the other way when plaintive hands are reaching out. You miss a lot of big stuff like this. Oh, and it gets worse. When you sit on your can all day like me, and when the cupboards are full, you get to being obsessed about "staying in shape." And, not to blow my own trumpet, but I'm in killer shape for 39. Thing is, though - what a load of rubbish. Killer shape. Seriously, Tom. When you stand behind a counter and hand someone a plate of food and that someone has this thousand yard stare and you know that stare comes from more than being hungry but feeling hopeless and lost and in despair, when you do that, you understand how being in shape, killer shape (mostly, let it be known, to convince my daughter that I'm a local superhero; and, at 14, I don't think she believes me anymore), well, you understand the shallowness of it.

      The bubble bursts.

      So, my first investment suggestion, idea, whatever you want to call it: Find a way to make people happy.

      It doesn't actually cost a million bucks of course (cups of coffee are cheap, so's a meal, so's a blanket) but a million bucks can make a major difference.

      When I have it to spare, I'm going to put it to good use. I hope you will, too.

      GRM
      That would be something. You COULD use the million bucks to line up deals with the school system, and some religious places, and create a kind of small job site, and it could do so much more than you are talking about for a song. I once worked with a charity that did like 1/3rd of that. DOZENS of people, like me helped out for free.

      Steve
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  • Profile picture of the author Tom Addams
    Before anyone else calls it: dibs on Alexa and Adrian as my financial advisers.

    To say you folks know your stuff is like saying I know how to eat a donut in 10 seconds (the only way to eat them, and I can usually do it in 5).

    Impressed, to say the least!

    GRM
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  • Profile picture of the author NeedBucksNow
    Good question. I would find something that would give a short term and long term passive income. Short term would probably be invest in rental properties or bankruptcies and fix them up for a profit. Long term would probably be a car dealership or restaurant as these are things people need & would almost certainly do well
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by BlogsBringBucks View Post

      Long term would probably be a car dealership or restaurant as these are things people need & would almost certainly do well
      Hmmm ... "almost certainly"?? This is one of the most notoriously precarious industries there are: at the moment the average life-expectancy of new restaurants, in most Western societies, is widely said to be about 6 months. Perry Group International has completed studies on their average life span, and concluded that most restaurants close during their first year of operation, and that even 70% of those that do make it past the first year close their doors over the following three years. That leaves only a very small proportion of long-term survivors.

      I suspect the car dealership may be a better overall prospect than that?

      .
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      • Profile picture of the author Claude Whitacre
        Originally Posted by Alexa Smith View Post

        Hmmm ... "almost certainly"?? This is one of the most notoriously precarious industries there are:
        My first thought too. Start a restaurant? Highest overhead, lots of employees, and used restaurant equipment is worth nothing. There almost is no worse gamble.....

        Car dealership? No competition there. No need to learn how to promote, advertise, hire, compensate reps....Yup, just open the door, and money rolls in.

        What would I do with a million dollars? Retire 2 years earlier. It's just not that much money.
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        • Profile picture of the author discrat
          Maybe fellow Warriors, Filsaime or Bacak, will make an appearance here and tell us first hand
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        • Profile picture of the author discrat
          Originally Posted by Claude Whitacre View Post


          What would I do with a million dollars? Retire 2 years earlier. It's just not that much money.
          It just really isn't.

          Lets move the Thread to $5 million and then we can really have a relevant discussion
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          • Profile picture of the author Alexa Smith
            Banned
            Originally Posted by Claude Whitacre View Post

            It's just not that much money.
            This is perfectly true. But sometimes you really do sound just like my father, you know ...

            Originally Posted by discrat View Post

            Lets move the Thread to $5 million and then we can really have a relevant discussion
            LOL ... poor Tom took a boat-load of criticism yesterday for starting this thread about $1 Million, which some people felt was fantasy-land, and now it's not even enough to discuss?

            Anyway, I see it's ended up in Off Topic now (because, of course, it had nothing to do with making money, so it wasn't "legitimate" in the main marketing forum! ), so at least that means another group of people get some input into it.

            .
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    • Profile picture of the author Adrianhenry
      Originally Posted by BlogsBringBucks View Post

      Good question. I would find something that would give a short term and long term passive income. Short term would probably be invest in rental properties or bankruptcies and fix them up for a profit. Long term would probably be a car dealership or restaurant as these are things people need & would almost certainly do well

      Surely car dealerships will be one of the hardest hit in times of recession, so you would be doing well to maintain a business through one.
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    • Profile picture of the author Tom Addams
      Originally Posted by BlogsBringBucks View Post

      Good question. I would find something that would give a short term and long term passive income. Short term would probably be invest in rental properties or bankruptcies and fix them up for a profit. Long term would probably be a car dealership or restaurant as these are things people need & would almost certainly do well
      Really enjoyed your answer. Surprisingly enough, my grandfather, among other things, was into property development and hospitality; although I doubt he'd have called owning a diner hospitality, as I did. Alexa probably makes some excellent points about owning a restaurant - I don't know, not my thing, but I don't think I've yet to see Alexa be wrong. I like your plans, though; especially developing rental properties. We've been into that over the years. Not as passive as you'd think, but not so hands-on as what you and I do on a day-to-day basis.

      GRM
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  • Profile picture of the author Adrianhenry
    I highly doubt many 12 year olds talk about investment strategies. In fact many people pay (significant) money to "professionals" to have this very same discussion (possible new WSO? ). Its just that the OP uses unrealistic figures for most of us, but it doesnt mean that the discussion itself is invalid.

    In a forum about making money I'm shocked how many people appear to be against discussing investing said money they are attempting to make. Each to their own though, I guess.
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    • Profile picture of the author Tom Addams
      Originally Posted by Adrianhenry View Post

      I highly doubt many 12 year olds talk about investment strategies. In fact many people pay (significant) money to "professionals" to have this very same discussion (possible new WSO? ). Its just that the OP uses unrealistic figures for most of us, but it doesnt mean that the discussion itself is invalid.

      In a forum about making money I'm shocked how many people appear to be against discussing investing said money they are attempting to make. Each to their own though, I guess.
      Thanks for your post, Adrian!

      I used $1,000,000 to make the discussion fun, a little beyond the norm, and basically just a way to shoot the breeze on a Friday. Of course, when I see a good idea, I'm obviously going to file it away (as we all should), but primarily this was just a bit of fun, and despite the usual suspects I've been having a ball. It often takes a thread like this for people to open up. You get to discover their true character, because a lot of the time we're answering within threads in a very formal manner. This is an opportunity to relax, have fun, and perhaps receive some inspiration. I've already learned a lot and enjoyed talking about my daughter, the film industry, and property development. Particularly enjoyed your talk on finance.

      GRM
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  • Profile picture of the author vetman85
    Invest it into Forex market and get 10% monthly for a life.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by vetman85 View Post

      Invest it into Forex market and get 10% monthly for a life.
      I do appreciate that your signature-file might predicate that you'd like people to imagine otherwise, but in reality even the top floor traders at Goldman Sachs (the people with the 7-figure annual bonuses) don't expect - or make - 10% monthly on their available funds. They might very occasionally hit 10% in a spectacularly successful month, but "10% per month for life" is just dream-world nonsense. Professionals understandably laugh at such claims.

      .
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    • Profile picture of the author Adrianhenry
      Originally Posted by vetman85 View Post

      Invest it into Forex market and get 10% monthly for a life.
      This is somewhat of a ridiculous statement. Making 10% a month is impossible, regardless who you are.

      To put in in perspective if you start with $1000 and invest a further $500 every month and you make a consistent 10% on your money every single month then at the end of a 10 year period (far from the lifetime you mention) you will have only invested $27.5k yourself but you will be sitting on the tidy sum of $556,248,912. Yep that's over half a billion dollars in 10 years and works out at a cool 2million % return. Not so bad
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      • Profile picture of the author Tom Addams
        Originally Posted by Adrianhenry View Post

        This is somewhat of a ridiculous statement. Making 10% a month is impossible, regardless who you are.

        To put in in perspective if you start with $1000 and invest a further $500 every month and you make a consistent 10% on your money every single month then at the end of a 10 year period (far from the lifetime you mention) you will have only invested $27.5k yourself but you will be sitting on the tidy sum of $556,248,912. Yep that's over half a billion dollars in 10 years and works out at a cool 2million % return. Not so bad
        So, you're saying you can't do that, Adrian? You disappoint me. Return my million pronto!

        GRM
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        • Profile picture of the author Adrianhenry
          Originally Posted by Get Rich Methods View Post

          So, you're saying you can't do that, Adrian? You disappoint me. Return my million pronto!

          GRM
          I never actually said I couldn't do it just said impossible regardless of who they were
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          • Profile picture of the author Tom Addams
            Originally Posted by Adrianhenry View Post

            I never actually said I couldn't do it just said impossible regardless of who they were
            Haha . . . okay - ignore what I said. 50/50 split. Thing is, I really don't need that much return. Simple tastes, you see. A good book, a hefty supply of chocolate flavored donuts (with sprinkles), Angelina Jolie as the maid. Nothing grande, you understand.

            GRM
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            • Profile picture of the author Adrianhenry
              Originally Posted by Get Rich Methods View Post

              Haha . . . okay - ignore what I said. 50/50 split. Thing is, I really don't need that much return. Simple tastes, you see. A good book, a hefty supply of chocolate flavored donuts (with sprinkles), Angelina Jolie as the maid. Nothing grande, you understand.

              GRM
              I got your back
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  • Profile picture of the author Sitestomp
    Buy a modest house and modest car. Nothing too fancy. Invest the rest and enjoy an early retirement.

    However, if I was inclined to keep working, I would definitely move out of the online business space and start investing in Real Estate. Lots of money to be made in that market. Snapping up foreclosures and reselling, etc.
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  • Profile picture of the author timpears
    Real estate.
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    Tim Pears

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  • Profile picture of the author allegandro
    As I have a young wife and baby, I have to think...

    90% in my project

    If I had no family, I would invest 100% in my project.

    Call me crazy, but that is really what I would do.
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  • Profile picture of the author JosephC
    Whenever I earn money, I always go by David Ramsey 3/3/3 rule. Give 1/3, save 1/3, and spend 1/3. If I put 333,000 into a roth IRA at my age, I would retire with 7,500,000 at only 60! lol I would be set for my future and I could buy some cool things and help some people.
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  • Profile picture of the author skyro
    I would put percentage into real estate, percentage into high risk investment (stocks) percentage in lower risk (bonds, cds, mutual funds) , percentage in ira and percentage in IM Projects.
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  • Profile picture of the author DR0832
    The 10 year T-bill is paying a measily 2.32%. Emerging markets, which have offered some of the highest yields are getting hit hard. This means your 70% stocks: 30% bonds portfolio is going to earn you an average nominal return of 7.5% over the long term if history repeats itself . That's not much with a million dollar portfolio. That's $75k which after taxes is $50-60k a year. Maybe if you want to retire in 35 years this is okay but who the hell wants to work a slave labor job for 35 years only to be a old person and finally get your freedom? While I do have a long term portfolio, I prefer to use a portion of my net worth in short term trading where the returns are a lot higher, so that I can enjoy my life now. Very few people make money in the short term but I have been doing well as a professional trader for 12 years. The key is to stay away from what everyone else is doing, because most people are wrong.
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  • Profile picture of the author Lucian Lada
    I'll spend it on a car repair shop. Most I see around here are a joke when it comes to customer service; they really don't see things from the customer's point of view. That's why they offer cheap coffee in plastic cups, when decent coffee and decent ceramic coffee cups are just a bit more expensive and shouldn't impact the budget at all. Not to mention they rarely explain to the customer in layman's terms what has happened to the car and what needs to be done.

    I'd also try to get deals with local dealerships and get them to provide me with cars I can give to clients while their own cars are being repaired. I could do this by letting them advertise on the car with stickers. However, I'd like it more if I could buy a few affordable cars and not advertise all over them: it looks too tacky.

    I'd also like to open a restaurant (an Italian one.) I don't agree with Alexa: those statistics more than likely include a lot of people who just wanted to open an restaurant, thinking it's a good idea, without finding an USP of any kind. I see these in my city all the time: they open up, offer basically the same thing, but charge more. No wonder they flop. But my Italian restaurant will be different.
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  • Profile picture of the author HeySal
    One mil. Hum. Well first I'd invest in a case of Dom and have a lobster/crab dinner party to celebrate. In a few days after the effects of the Dom wore off..........

    I'd invest some in some property I know of that will return well in a few years for various reasons....and I'd spend about 15 grand on improving it = would keep 4 acres for business and flip the rest (3 years). I would also try to buy it straight from WB with all rights so our gov couldn't confiscate it at will.

    Then I'd take about 20 grand and play with penny stocks. Don't ask me which ones. I'd research that when I had the cash - I was taught how by my grandfather (a self made multi-millionare).

    Then I'd be investing in metal processing plants, metals, REMs. I'd also buy out several gemstone claims I know of and open them as fee digs.

    I'd also invest in an H3Tec Tricorder and the appropriate certifications and do some REM prospecting, too.

    Probably 10 to 50 grand in a 7 account.

    And, since Alexa's in here and would already know this, I'll tell the truth - I'd also be investing in a couple of awesome pairs of shoes and a matching outfit or two. Hey - I'm a chick. I need to have SOME primp out of that much cash, ya know?
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  • Profile picture of the author 101geeks
    Invest in Minecraft.
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  • Profile picture of the author HeySal
    1 mil isn't enough? Really. And so you don't invest small amounts to build to that one mil - it just lands in your lap, right?

    Oh that's right. That's what WSO's are for. Right.

    Tell ya a secret. If you can't double small amounts of money, your mil dollar dreams aren't gonna go very far, either.
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  • Profile picture of the author TrueSpamProject
    ahah )) It depends where you live, and what you can . Because money it not capabilities ) Personally, I live in Ukraine. And if I had a million there it very nice to make some fitness club or some nigth club and it will be very profitable here ... but it is too trite and uninteresting . I'll will collect all the little scientists who have no money to realize their projects and give them the opportunity to do it at my expense. It would be much more useful and this could make more money than anything else.
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  • Profile picture of the author ronrule
    I'd buy $10 million life insurance policies on a bunch of old people and pay the premiums from the $1 million until they kick the bucket.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by ronrule View Post

      I'd buy $10 million life insurance policies on a bunch of old people and pay the premiums from the $1 million until they kick the bucket.
      Did you know that buying existing life insurance policies, when the policyholder is older...is actually a business?

      One way life insurance companies make money is that only one in seven life insurance policies are still in force when the policyholder dies.

      But buying a 70 years old's million dollar policy for $500,000, and keeping up the premiums, is a solid business. Usually, the cash value is close to what you are paying them...it almost finances itself.

      I just didn't have the stomach for it.
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      • Profile picture of the author ronrule
        Originally Posted by Claude Whitacre View Post

        Did you know that buying existing life insurance policies, when the policyholder is older...is actually a business?

        One way life insurance companies make money is that only one in seven life insurance policies are still in force when the policyholder dies.

        But buying a 70 years old's million dollar policy for $500,000, and keeping up the premiums, is a solid business. Usually, the cash value is close to what you are paying them...it almost finances itself.

        I just didn't have the stomach for it.
        I pay $349 per month for the $2 million policy I secretly took out on you. I figured it's only a matter of time before you snap, actually start believing you're a superhero, and go out and get yourself perished. Even if it takes 30 years, I'm only out about $125K and have $2M coming back.
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        • Profile picture of the author bizgrower
          Originally Posted by ronrule View Post

          I pay $349 per month for the $2 million policy I secretly took out on you. I figured it's only a matter of time before you snap, actually start believing you're a superhero, and go out and get yourself perished. Even if it takes 30 years, I'm only out about $125K and have $2M coming back.
          OT forum's Batman vs. Superman. Batman makes the first move.
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  • Profile picture of the author bizgrower
    I'd buy two or three bread and butter single, family rental houses in traditionally strong rental
    markets.

    Owning an auto repair facility/transmission or engine rebuilder does have some interest
    as I could run those very well. I like to think so anyway.

    I'd stay away from the restaurant business as it is very risky. Also, a small place has to be
    owner operated and takes a lot of time and you have to love, love, love the business.
    A place large enough to be absentee owned would be tough to open and budget with
    reserves with that $1,000,000.

    A tip though, if you are interested in buying a restaurant, look for one that went out of
    business but was nicely built before they went under. Where I used to live, an upscale
    bedroom community near Denver, CO, there is a high end restaurant that the first owner
    really built well with investors. She had a high level corporate background and had always
    wanted to own a restaurant - but never really worked in one. Six months later, the second
    owners, who had a strong, strong restaurant background, bought that property for about a
    third of what the first owner spent.
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  • Profile picture of the author ronrule
    On a serious note though, I'd jump into real estate. Areas where town houses and condo's rent for $1200+ but can be purchased for under $100K - pick up a few of those cash, rent them out for 5-10 years, then flip.
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    • Profile picture of the author bizgrower
      Originally Posted by ronrule View Post

      On a serious note though, I'd jump into real estate. Areas where town houses and condo's rent for $1200+ but can be purchased for under $100K - pick up a few of those cash, rent them out for 5-10 years, then flip.
      Resell value of condos and townhomes v. single family is a consideration. Also, HOA dues.
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      • Profile picture of the author ronrule
        Originally Posted by bizgrower View Post

        Resell value of condos and townhomes v. single family is a consideration. Also, HOA dues.
        Yeah, the trade-off is the maintenance and taxes. I'm less concerned with resell value since there wouldn't be any debt against them and the primary goal would be income producing not to flip. If they stayed rented I'd presumably keep them that way longer than 5 years, and there's less maintenance and insurance costs on a shared structure than a single family. Buying power would be decreased - an $80K condo can still be in a pretty nice area and attract quality tenants, while an $80K house won't so much (at least not in this area). Basically between taxes, insurance (excluding contents), and association fees I'd have a hard cost of about $300/mo on an $80k townhouse in my county, so if I'm renting out at $1,200 I'd be seeing an annual return of 13.5% on my $80K investment.

        Pick up 12 of those and turn that $1MM into $129K/yr net return, and that's if I don't ever raise the rents. And with no debt against the property, I don't have to worry if there's a gap in finding a tenant, it's a non-gain not a loss. As long as it's rented 3 months out of the year I'm at a break-even. I know the details are more complicated than that, but at a basic EBITDA calculation the math works and it's a pretty safe portfolio. I'd rather let it grow and sell off a property if I ever had to than spend any of the $1MM. I have 3 kids, that's 3 future tenants right there. Those little brats will pay me back for the cost of raising them to age 18 one way or the other, lol.
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  • Profile picture of the author bizgrower
    In the past we have had some darn good tenants, so it was not worth raising the rent and trying to get a different tenant. You don't know what you're going to get. Appreciation and keeping the property in
    good shape was enough for the couple of properties I owned or managed for my Mom.

    In Colorado, we have some HOA fees that are really high (hail and snow removalcoverage?) and SFR's seem to appreciate more overall in general.

    Just goes to show investors to know the territory of where they buy. (It's a bit tiring to see the real estate gurus talking about how they buy property anywhere without seeing it.)
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    • Profile picture of the author ronrule
      Originally Posted by bizgrower View Post

      In the past we have had some darn good tenants, so it was not worth raising the rent and trying to get a different tenant. You don't know what you're going to get. Appreciation and keeping the property in
      good shape was enough for the couple of properties I owned or managed for my Mom.

      In Colorado, we have some HOA fees that are really high (hail and snow removalcoverage?) and SFR's seem to appreciate more overall in general.

      Just goes to show investors to know the territory of where they buy. (It's a bit tiring to see the real estate gurus talking about how they buy property anywhere without seeing it.)
      Ha, yeah what you're paying in HOA fees we're paying in insurance. No snow here, hail is a once every 20 year event, grass is green year round. But you know, a major hurricane happens like once every ten years, so the insurance companies need to price it as if it happened every year in every part of the state just in case.

      Jeez, come to think of it, maybe I should start an insurance company...
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      • Profile picture of the author discrat
        Ron Rule, I need to verify that is your God given birth name lol

        j/k

        good name. good for marketing
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      • Profile picture of the author bizgrower
        Originally Posted by ronrule View Post

        Ha, yeah what you're paying in HOA fees we're paying in insurance. No snow here, hail is a once every 20 year event, grass is green year round. But you know, a major hurricane happens like once every ten years, so the insurance companies need to price it as if it happened every year in every part of the state just in case.

        Jeez, come to think of it, maybe I should start an insurance company...
        Gearhead Insurance has a nice ring to it. Just use generic gears as the logo. lol

        I had a friend lose her Florida home. They made a lot of money, but spent it all
        on flashy junk and did not maintain the home - especially the roof. When hubby
        lost his big job, the home ended up being basically worthless because of all the
        water and structural damage.
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