Getting $1Million, how to make it last

[Broken Arrow]

I haven't really looked at the thread, but here's a recap of what the OP wanted:

Originally Posted by shawn0811

Ok...long story short...I am inheriting 1 million dollars March 31. What is the best way to receive monthly payments? How much can I expect a month? I am 24, and just want monthly payments to increase my monthly income.

Notice the emphasis on a monthly income.

Inheriting that 1 million may also involve paying some kind of income tax on it, so he may not get the full amount. The details will also vary depending on states.

Right now... there's not a whole lot out there that will give you both capital preservation and a monthly interest payout, much less a high interest rate. The truth is, the simplest thing here may be online savings accounts. Have several of these accounts filled to the FDIC limit, and then have the dividend interest automatically transferred to his central checking account.

The "upside" to this is that not only does it provide what the OP is looking for, but it also "parks" his money for now until he decides what to do later, if anything. If so, the foundation is also set for him to convert some of this cash for investment.

For what may realistically amount to $500k after taxes, I think that's as good a way to start out as any.

[jasonnoguchi]

Originally Posted by disneysteve

Canned fruits, vegetables, pastas and meats.
Dried pasta and other dehydrated products.

Lots of stuff isn't perishable.

Last time I checked, all of these has expiration dates stamped on the cover... correct me if I am wrong.

[jasonnoguchi]

Originally Posted by LuxLiving

jason said:
"Maybe you can advise us all what is the "safest" investment to do with a million now."

Nope. If you read the rest of the forums, you'll note elsewhere I've mentioned that we do take all those risk scenarios into consideration when we make our asset allocations.

The stability of the US government backed investments is of concern to us at the moment. We will likely make a foreign currency play in our next reallocation process.

But, I am not a financial planner, and it has never been my intent to play one here. May be you are one? If you'll notice when I replied to the OP, t'was saying what "I" would do.

Having just inherited not one but two large sums of money, the answer is no, Jason, I don't believe we'll be handing over our money to you. And, I would rather have the people in my life than the money they so nicely bestowed.

FYI: I would consider myself to have a fairly high risk tolerance, however, that does not stop me from considering all those doomsday scenarios you so nicely laid out for us when we decide where to put our dollars - and right now the actions of the current WH administration have me very concerned.

Yes, the USD is a concern now. In fact, I don't think the USD is going to last very long and would likely go into default to be replaced by something else... maybe the Amero? That will probably allow the US to default on all of their USD based debt, thus wiping out the huge debt in one go. well, just my guess. But if a USD default really happens, we are all in trouble and that is the next big financial crisis that I wrote about in my other recent writings.

I have reallocated a significant portion into RMB the past 6 years for some unfair stability...hahahhaa... yes, I think the RMB will survive a USD default since its not pegged to it in any ways directly or indirectly. But hey, the chinese government has changed hands at least once in a hundred years or so for the past 5000years, so...hahahah nobody's safe from doomsday scenario, not even RMB.

anyways, its been a fun brain exercise with you here.

[thekid]

At 24, I would not focus on monthly withdrawls. Having 1M$ to invest long term at 24 is a MEGA opportunity for you to build up some very serious capital.

I would be much more inclined to go with a long term diversified mix of stocks and bonds, reinvesting income and gains to grow that capital.

You can have a nice multiple of that 1M$ by the time you are forty rather than just start living off it at 24 and slowly wasting it away.

Somebody's hard work and savy has given you a wonderfull opportunity to make something grand for you and your future family. I would hate to see you throw that away.

[cschin4]

I would put it away in a fairly safe investment and just allow the interest to come in and spend however you want. Leave the principle untouched and then go about your life as planned.

[cschin4]

Did the OP ever respond back or just trolling?

[LuxLiving]

shawn0811 has currently one and only one post.

[Broken Arrow]

Originally Posted by jasonnoguchi

Yes, the USD is a concern now. In fact, I don't think the USD is going to last very long and would likely go into default to be replaced by something else... maybe the Amero? That will probably allow the US to default on all of their USD based debt, thus wiping out the huge debt in one go. well, just my guess. But if a USD default really happens, we are all in trouble and that is the next big financial crisis that I wrote about in my other recent writings.

Ok, that may well be true, but what is the underlying thesis behind this?

As I've illustrated in other threads, we've been experiencing deflation since March 2009. In other words, despite the Fed's valiant attempts to deliberately weaken the Dollar, the Dollar has actually been strengthening!

Here's a quick chart if you want to look at it.

Also, while there have been talks of changing the trade of oil from Dollars to a basket of currencies (which I actually support by the way), the talks-- instigated by Russia and China no less-- have been voted down. Oil is still traded in Dollars, which still shows some global confidence in the currency.

It's also interesting to see that for a lot of Sovereign Wealth Funds (SWFs), their "flight to safety" still results in the mass buying of US Treasuries. Again, more concrete signs of confidence and buying into not just America's future prospects, but ultimately, the Dollar. To be fair, I hear that there is more talk of "diversification" now though, but those are considered aggressive plays, and most SWFs have already done that back in 2008....

These may seem like anecdotes, but nothing speaks louder than someone voting with their money.

Finally, in a different thread, I've also linked Kiplinger's take to the Dollar. While it is only an online news article, I think this one should not to be taken lightly. For example, it states that the slip in Dollar trading is systemic, despite the deflationary pressures and the subsequent strengthening of the Dollar. So why is this? The reason is NOT the loss in confidence of the Dollar itself, but rather, loss in confidence over a V-shaped economic recovery. There is a distinct difference.

It's true though that we have a lot to worry about. Our national deficit is reaching a point where I wonder if it is truly sustainable. But the issue is pretty simple and straightforward, and when it's all said and done, pretty much everything hinges on an economic recovery, which I am fairly optimistic about.

For example, at the very least, the economy has already "bottomed". The contraction ended when companies exhausted their inventories, causing a "rebound" of sorts. Now, with the marketplace having evolved due to the recession, the market now has to find a new footing to step back up towards genuine growth, and ideally, without relying on the old consumer model. We've got a lot of ground to cover, but this chapter of the story has yet to be written....

[disneysteve]

Originally Posted by jasonnoguchi

Last time I checked, all of these has expiration dates stamped on the cover... correct me if I am wrong.

Well, everything goes bad eventually, but properly stored, many food are good for years. "Expiration" dates usually aren't actually expiration dates. They don't mean the food can't be eaten after that date. They may mean the stuff may not be at it's peak or that the company won't guarantee quality after that date, but the food is still good. I know I've heard that canned foods can be good for 30 or 40 years. Vacuum sealed dehydrated stuff is probably good indefinitely.

[LuxLiving]

Jason, you (or someone else here) might be interested in reading up on food storage. A good place to start.

Using Your Food Storage

[kenyantykoon]

thats a really lucky break. I would suggest that you invest every single coin because you really do not need the cash as of now. Dont go crazy and spend it wildly good luck man

[thekid]

I'd just like to revisit this. You are still quite young and may feel like you are going with a conservative approach by only using monthly withdrawls. You are not. 1M$ is a lot of money, but at the same time it isn't. What it is mostly is opportunity, particularly at your age. Should you start using it now, it will be gone, most probably before you even get near retirement age. Nothing left for you and nothing left for your children. You would have squandered it.

I would honnestly encourage you to rethink this and view this opportunity not as a short/medium term windfall, but as the occasion to build something lasting for you and your family. My family is in a similar position. From my wife's and my parents, we stand to receive considerable amounts. We're both very focused on furthering what has been built, both for the sake of preserving our security and freedom and for our kids. This is also what we wish to teach our kids. Money is fleeting. Most accumulated wealth is disipated within one to two generations. The way you are approaching this, with monthly withdrawls from age 24 ensures that all of it will be gone within a number of years. My personal opinion on the subject is that as the recipiant of this privilege, you have the duty to preserve it and make it bloom.

I would seriously suggest that you look not to augment your monthly income during the next few years and invest the capital and returns with long term growth in mind. Take this advice for what you will.

[Broken Arrow]

Originally Posted by thekid

I would honnestly encourage you to rethink this and view this opportunity not as a short/medium term windfall, but as the occasion to build something lasting for you and your family.

Good advice. I'm glad that you see it that way, and I hope the OP will as well.

[jasonnoguchi]

seems like the OP is just creating buzz.

[GrimJack]

Well, there is a blog that a friend started when she inherited some money. She is about twice your age but if you start at the beginning of her blog (she started it around the time she learned of her inheritance), you will be able to follow her thinking/logic w/r/t how she handled the situation.

keepin' it fiscal 22/5. Maybe.baselle's Financial Diary - check it out - skim for good ideas.