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Old 11-10-2008, 04:07 PM   #21
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I'm not crazy about state finances these days so I'm not sure I'd want to trust my $10MM to the muni's. I'd go with TIPs and pay the taxes. Maybe a little fun money in equities.
That's a good point I think all of them but 12 are in the red.
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Old 11-10-2008, 04:11 PM   #22
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My smart ass version - at ten mil you are at the low end bragging wise but:

get a lawyer, form a foundation, buy Vanguard Balanced Index, VBINX,(the infamous 60/40 policy portfolio) hire yourself(at a good salary, benefits and expense account) to travel and give away 5% per year.

Or if you are a really cheap sort( ) like me - buy the tax managed version. VTMFX, and party til you puke.

heh heh heh - and if you like the mysterious 'value premium' - pssst Wellesley, pay your taxes and party on.

Then there is - buy a cheap mansion with a thirty year mortgage, live there 2 years, fix and flip, and repeat. I mean we gotta give the RE cats some respect.
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Old 11-10-2008, 06:22 PM   #23
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Charitable remainder trust.
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Old 11-10-2008, 06:26 PM   #24
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I think I would take up smoking dope and looking at how big the pile was about every year.
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Old 11-10-2008, 06:29 PM   #25
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I would invest in short term tax exempt bonds paying about 3.2%. Any better ideas out there? Would there be a need to move to a tax free state or would tax exempt bonds slove that problem?
do you adopt?
i would use half of it to buy up as much undeveloped land as i could up here in East Nowhere NY, set aside some $ for property taxes, hold it for 10 years, then sell it in 5 acre parcels to rich people from NYC and NJ and LI.
the other half? can you say SQUANDER fast 3x ?
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Old 11-10-2008, 06:36 PM   #26
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$10 M??
$5 set aside for taxes

the other $5 M-
$1 M in TIPS
$2 M in dividend mutual fund with a 3% yield
$1 M in REITs
$1 M in muni bonds
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Old 11-10-2008, 08:24 PM   #27
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Aren't those large lottery wins paid out over 20 years?

So a 10,000,000 win would actually be $500,000 per year less taxes you'd have to figure out how to live & invest on.

Heck, I'd probably just max out my IRA's for the year & blow the rest on travel & fun.

When it runs out in 20 years I'd live off the IRA's.
I believe you'd have to continue to w*rk in order to do this. Don't you have to have earned income to put the money in an IRA?
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Old 11-10-2008, 08:40 PM   #28
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I believe you'd have to continue to w*rk in order to do this. Don't you have to have earned income to put the money in an IRA?

Oh yeah - ok, well forget the IRA part then - party on!
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Old 11-10-2008, 08:50 PM   #29
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I believe you'd have to continue to w*rk in order to do this. Don't you have to have earned income to put the money in an IRA?
Oh yeah - ok, well forget the IRA part then - party on!
It's probably better that way. After all the maximum IRA contribution is only $5K a year plus another thou if you are over 50. I don't have my calculator to hand so I'm just guessing, but even if you completely maxed your IRA every last one of the 20 years and we had a bull market the whole time, I doubt you'd be able to continue with a comparable lifestyle to the half-million-less-IRA that you would have been enjoying for the previous 20 years!
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Old 11-10-2008, 09:17 PM   #30
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You'all think different from me. It is the rich that can afford to take chances. I think I would use close to the same allocation I have now:

5% gold
35% short term bonds (treasuries)
15% Large cap US Index
10% Mid cap US Index
10% small cap US Index
15% oversea developed US Index
5% overseas developing US Index

Balance once per year
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Old 11-10-2008, 09:34 PM   #31
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Would not be too different than what I have done (with a smaller sum of course)

30% in safe places like T-bills, CDs, bonds, etc...
35% sent to Buffet,
the other 35% I take to the Scottrade casino.

A guy can't travel all the time. It gets tiring after about 3 weeks. Then one needs a period of rest of a few months before going out again. Other than watching over your stocks with all that free time, what's a guy to do?
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Old 11-10-2008, 09:35 PM   #32
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Spread 9.5M among several banks, then "invest" the rest in Vegas....
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Old 11-10-2008, 10:11 PM   #33
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I'd be pretty conservative with that kind of money, but I'd probably shoot for at least 40% stock overall still.
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Old 11-10-2008, 11:05 PM   #34
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I'd bet it all on the pass line at the crap table in Vegas or Atlantic city. 10 Million just isn't enough to scrape buy you need $20 mil
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Old 11-11-2008, 04:07 AM   #35
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I'd invest in an RV, a boat, an airplane, a Harley, beer, dancing girls....

And oh, yeah, put a couple million in the bank for hard times.
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Old 11-11-2008, 09:09 AM   #36
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George Vanderbilt inherited $10,000,000 in 1885 and invested part of it in this country cottage:

Visit Biltmore - Biltmore House
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Old 11-11-2008, 09:15 AM   #37
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George Vanderbilt inherited $10,000,000 in 1885 and invested part of it in this country cottage:

Visit Biltmore - Biltmore House
Nice house, nut $10 million back then is like $10 billion today.......
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Old 11-11-2008, 10:04 AM   #38
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Nice house, nut $10 million back then is like $10 billion today.......
Yeah, yeah, tell it to poor slighted George.

His brothers each inherited $60,000,000 and were able to build their country cottages at the more expensive fashionable Newport:

House Tour

Now I understand why forum members say they enjoy house surfing.
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Old 11-11-2008, 11:31 AM   #39
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I'd invest in an RV, a boat, an airplane, a Harley, beer, dancing girls....

And oh, yeah, put a couple million in the bank for hard times.
I like your idea better! Of course I would have to change one of the "investments".......
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Old 11-11-2008, 12:24 PM   #40
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The first thing I would do is secure a decent income stream by taking $2M of it and putting it in a number of different inflation-adjusted SPIAs with different insurers -- basically "buying a pension" with 20% of it.

Then I'd probably put about half of the rest ($4M) in TIPS and the final $4M in a total market index. As I wouldn't suspect I'd ever need the stock portion of it for income, I wouldn't be too stressed about the current market. I'd mostly be growing it for my estate.
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