So I'm trying to set-up a trust for my kids. Currently sitting on lots of cash i.e. mid 7 figures. How would you invest it and would you invest it all at once, quarterly/monthly over the next couple of years or wait for a market downturn?
assuming mid 7 figures = $500,000. That's a lot of dough in cash.
First suggestion talk to RobbieB, second suggestion, invest the rest leaving a 3month emergency fund to cover any short-term liabilities.
You mention kids. Have you opened a 529? If it was ME I would just transfer the entire 500k into my VG Broker. Then I would purchase into my Asset Allocation of 25% Small Cap Stocks, 25% Mid Cap Stocks and 50% Large Cap stocks (assuming the least volatility is within the large cap).
Some might suggest some bonds, or possibly CDs. The rates on CDs will go up in the next year, but that's too low of a risk tolerance for me during the accumulation phase.
You could go 100% VTI
or if it was ME and my AA, it would end up to be 125k VBK, 125k VOT, 250k VUG.
Or find a similar (cousin) index fund in an ETF to Mutual Fund comparison tool.
We could get into all sorts of subsidy concerns etc, but I personally take the approach of plowing cash into equities as soon as I have liquidity.
assuming mid 7 figures = $500,000.
Mid seven figures is more like = $5,000,000 - Good advice though kgtest
When you say mid 7 figures, do you mean you are in physical possession of ~5 m-m-million in cash? Perhaps you should read over the recent thread about safes...So I'm trying to set-up a trust for my kids. Currently sitting on lots of cash i.e. mid 7 figures. How would you invest it and would you invest it all at once, quarterly/monthly over the next couple of years or wait for a market downturn?
aha!Mid seven figures is more like = $5,000,000 - Good advice though kgtest
So I'm trying to set-up a trust for my kids. Currently sitting on lots of cash i.e. mid 7 figures. How would you invest it and would you invest it all at once, quarterly/monthly over the next couple of years or wait for a market downturn?
So I'm trying to set-up a trust for my kids. Currently sitting on lots of cash i.e. mid 7 figures. How would you invest it and would you invest it all at once, quarterly/monthly over the next couple of years or wait for a market downturn?
ArthurF, you haven't given people much to go on.
How about introducing yourself over here and providing a little background? That makes it much easier to give you good advice.
Hi, I am... - Early Retirement & Financial Independence Community
Well, when my parents died earlier this year and I inherited the Gumby family fortune, I took all that money down to the corner store and bought a Diet Dr. Pepper and a pack of smokes. And I still had 36 cents left after that!
Well, when my parents died earlier this year and I inherited the Gumby family fortune, I took all that money down to the corner store and bought a Diet Dr. Pepper and a pack of smokes. And I still had 36 cents left after that!
10% = $5M+!!! Maybe not a bad thought....If I had $5M to blow, I'd buy a large liveaboard dive boat, and hire some crew...and start travelling!Take 10% and just blow it -
Invest the other 90% as you wish.
I know you are joking (I think) but if you are serious, I don't think you'll find any casino in AC that would take a $5m bet on a straight up Roulette number. However, you "might" find one or two in Vegas that would take such a bet. (Maybe) Since the unlikely hit would cost them $175m.Me, I would take the next plane to Las Vegas or Atlantic City and put it all on on the Roulette wheel, 23 red.
I know. They really should have set up a spendthrift trust.Wastrel!