Quote:
Originally Posted by manaboutown
Believe it or not I am asking for a rather wealthy friend who happens to have $1M cash lying around earning him next to nothing and has no ideas on how to invest it. He and I have known each other since junior high and we brainstorm on various matters from time to time. I told him I had no idea and was sitting on a lot of cash myself (not anything like $1M).
Anyway I thought it might generate some creative thinking as I am out of ideas. Stocks and real estate seem at present extremely overvalued to me. Anybody have any possibilities they would care to share?
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Your friend probably. . .
— Has a paid for roof over his head. (at least one)
— Does not make car payments or any other interest payments.
— Has established, dependable cash flow from income producing stocks, pensions, SS, etc.
— Does not let himself get into the position of having to sell stocks to pay taxes.
— Has a good longterm care policy (even though the company might now be playing chicken with the annual raising of rates) Or feels he can comfortably afford out-of-pocket care if the need arises. Or can buy into the highest rated CCRC he can find, if he so decides while he is still independent.
— Can project ongoing and increasing expenses like insurance, property taxes, etc., and feels like he’s got it covered without worrying.
— Can cover the things he enjoys doing with his disposable income.
— Makes sure to manage potential income tax hits — like if he has to take RMDs and is charitably inclined, uses QCDs to not add the amount of the charitable contribution to taxable income. ( and probably other things he knows far better than I do about paying attention to consequences or advantages of tax decisions)
— And, of course, is galled by that money sitting idle, but has divided his assets by the number of years he thinks he might have left and is wondering if he should just get over it and continue to maintain that moat of cash just like it is — however cringeworthy that might feel. What’s it worth to him — in subjective ways beyond ROI?
Meanwhile, you guys need to watch Consuelo Mack on her show
WealthTrack on PBS. (gasp.
) A look at her website wealthtrack.com will show some of her weekly interviews with some big deal investors. You will not get any direct advice — well, maybe some suggestions — but her 1/2 hour interviews will give you some things to think about. . .and nobody yells or rings bells or is mad.
Boomer