How would YOU invest $1 Million?

[The Y-man]

... one has to pay tax if earning the money its a fact of life ....

Hi Nathan,

This is very true. I suppose what I am trying to allude to, is that cash investments may not be the most tax effective method of investing/generating passive income (although probably one of the least volatile).

For myself, I am willing to take on slightly more volatility, in order to try and pay less tax (I agree you can not get it to "no tax") and hopefully higher returns.

Cheers,

The Y-man

 

[The Y-man]

On the 8 % its just a figure i put out there ,im sure if shopped around with banks and said has a million to in vest they would come up with about that figure ,im only surmising but maybe some one with a million invested could tell us for sure .Nathan

Unfortunately, the banks won't even consider you as a serious private banking customer unless your net worth is over $2.5m........and even then, they just offer to put your money into managed funds

Cheers,

The Y-man

 

[Junior]

Set up a margin loan and invest $2 mill into Aus blue chips. Should generate at least $80,000 p.a. in franked dividends plus long term capital growth of at least 10%.

Well I'd waste at least $100k on cars/holidays first and then gear the rest.

 

[krisbarry]

I'd buy STC a house!

Ohh thanks, I will take you up on that offer if you do happen to come into the money

But in all honesty you and I are richer than the other 5.5 billion people who live on this earth, so I could see plenty of people much worse off that need the money (or the house for that matter).

I don't need charity, and neither does any other young person, what we need is affordability....something that has been robbed from us, again, thanks for your concern!

 

[investforwealth]

On the 8 % its just a figure i put out there ,im sure if shopped around with banks and said has a million to in vest they would come up with about that figure ,im only surmising but maybe some one with a million invested could tell us for sure .Nathan

Believe me, the banks just aren't interested in doing anything for a million bucks in cash. I tried very hard to get a competitive rate when parking that amount recently and nobody was really willing to do anything. So I'm guessing Y-Man is probably right about the 2.5 needed to get any kind of concessions from the banks.

 

[krisbarry]

Thats not true at all.....I went to the bank, with a cheque for $12,500 and the lady bent over backwards to try and convince me to start a high interest bank account. I said thanks but no thanks, as I already had plans to deposit the money elsewhere.

Every other time I went to the same bank, and the same branch, they didn't want to know me at all and kept declining me for loans or credit cards etc over a 10 year period!

 

[tech/a]

But in all honesty you and I are richer than the other 5.5 billion people who live on this earth, so I could see plenty of people much worse off that need the money (or the house for that matter).

I don't need charity, and neither does any other young person, what we need is affordability....something that has been robbed from us, again, thanks for your concern!

Get a grip Kris.
You have the OPPORTUNITY.
The other 5.5 billion will NEVER have the same opportunities you have.

To be in the position of opportunity and NOT take advantage of it is just as tragic as those who wont ever be in that position.

Just take a look at how some of our immigrants have embraced that opportunity way way beyond those who have been living with it for years.

Affordability get outta here---ask the other 5.5 billion what affordability means to them.

 

[Freeballinginawetsuit]

Endangered species these days bro'.
The park at Yall's would be the ticket, nice leisurely stroll up the path to caves house- beautiful.............
But you'd need a few mates .

Yalls would be nice, as would prevelly , probably 10 mates would be the ticket..........for the lease, LOL!.

50 bucks a nite for an unpowered piece of dirt and they stack em in by the hundreds...............better than a U stock and with views (especially Yalls) .

 

[krisbarry]

Get a grip Kris.
You have the OPPORTUNITY.
The other 5.5 billion will NEVER have the same opportunities you have.

To be in the position of opportunity and NOT take advantage of it is just as tragic as those who wont ever be in that position.

Just take a look at how some of our immigrants have embraced that opportunity way way beyond those who have been living with it for years.

Affordability get outta here---ask the other 5.5 billion what affordability means to them.

Get a grip tech/a, I am taking massive risk right now, gearing, and its paying off well. Thanks again for your concern....and yes the other 5.5 billion people on this earth have the same opportunity we do.

Plenty make it rich in their own countries too, but its all relative! What is considered rich in one country is poor to another.

I am taking all the risk possible to make more and more money.

Like I said I have increased my wealth 8 fold in less than 3 years, if thats not risk, then what is?

Has your wealth grown 8 fold in the last 3 years? if not then you are not taking enough risks and therefor not following your own advice of taking advantage of opportunites.

 

[krisbarry]

...I consider myself rich now, even with very little wealth, because I can compare myself to the top 1.5 billion people, or compare myself to the bottom 5.5 billion.

...anyway this year I have been working on a different kind of wealth and that is E.Q.

Emotional Intelligence - Now that is worth far more to me that monetary wealth could ever be.

Increasing levels of Self Esteem, Confidence etc

 

[tech/a]

Get a grip tech/a, I am taking massive risk right now, gearing, and its paying off well. Thanks again for your concern....and yes the other 5.5 billion people on this earth have the same opportunity we do.

They do????

I am taking all the risk possible to make more and more money.

Like I said I have increased my wealth 8 fold in less than 3 years, if thats not risk, then what is?

Well I hope that "Risk" is quantified. Risk certainly isnt proportionate to wealth creation.

Has your wealth grown 8 fold in the last 3 years? if not then you are not taking enough risks and therefor not following your own advice of taking advantage of opportunites.

Hahaha.
The 30k I started with (similar to your nett worth) 4 yrs ago is now $400,000
you do the maths.(public knowledge http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=74;t=000029;p=6).
Its not a competition Kris.
and its NOT about RISK. Infact quite the opposite.

 

[investforwealth]

Thats not true at all.....I went to the bank, with a cheque for $12,500 and the lady bent over backwards to try and convince me to start a high interest bank account. I said thanks but no thanks, as I already had plans to deposit the money elsewhere.

Every other time I went to the same bank, and the same branch, they didn't want to know me at all and kept declining me for loans or credit cards etc over a 10 year period!

They were offering you over 6% pa on your $12,500 with it available at-call?

I'd love to know which bank it was, because I approached all the majors and many of the smaller banks and couldn't get any better unless I went into mortgage funds or something similar, with slightly higher risk than a bank deposit. Perhaps it comes down to what you view as "high interest".

I've never had a "friendly call just for a chat" from a bank manager before, but I do get it now from the local CBA branch manager, who likes to ensure that I'm happy with the service I'm getting; but he's been unable to get me a better rate than 6% on call on over $1M so far.

 

[krisbarry]

Investing $1 million dollars as some have already discussed may be determined by age as to where to put it.

We must also factor in for the fair majority of grey nomads on this board $1 million dollars might be pocket change to them but a wild fortune for the young, like myself.

So its like comparing apples with oranges as to how much value is placed on $1 million dollars and how the best way is to invest it.

 

[tech/a]

fair majority of grey nomads

I doubt that any here are nomadic. $1 mill is $1 mill regardless of age.
How you deal with it (The mill) and the prospects of getting it in the first place also differ with age.

All part of the discussion on what people would do with it or in some cases are doing with it.

I would say that from the comments posted you can spot those who see it as a dream more so than a reality or possibility.

 

[investforwealth]

Investing $1 million dollars as some have already discussed may be determined by age as to where to put it.

We must also factor in for the fair majority of grey nomads on this board $1 million dollars might be pocket change to them but a wild fortune for the young, like myself.

So its like comparing apples with oranges as to how much value is placed on $1 million dollars and how the best way is to invest it.

I did provide further information after the first few responses, qualifying the age and the risk profile of our hypothetical investor to provide "a level playing field" so that we're comparing apples with apples, as you put it. As you have said, other posters pointed out early in the thread that this information was important in determining how they would invest the money.

As for how much value is placed on it by our hypothetical investor, my first post asked readers to imagine they were a professional on an average wage. At the hypothetical age of this imaginary person, obviously they wouldn't have accumulated too much wealth, and the million would probably be a lot more money than they had seen before.

I'm more interested in knowing which bank was offering you big bucks on your $12,500?

 

[Julia]

The facetiousness of my earlier response aside, (sorry STC), I would donate $100,000 to the RSPCA, give $100,000 to a young family who were once tenants of mine, who put a lot of their own energy into maintaining the property, and who have kept in touch for about 20 years long after the property was sold. They are still renting, because of various circumstances, and deserve some help.

The balance I'd simply parcel out on a pro rata basis into my existing investments, i.e. growth and income stocks, including property trusts rather than have direct property investments with the present low yield, and cash.

At a different point in the economic cycle I'd consider direct property but really can't be bothered with all the worry of tenants, maintenance etc.

Btw, the expression "grey nomads" is inappropriate in this discussion.
It refers to those retirees who spend their retirement travelling, usually with a caravan. Many of us posting on this forum are neither grey, retired, or nomadic.

 

[The Y-man]

So I'm guessing Y-Man is probably right about the 2.5 needed to get any kind of concessions from the banks.

Ooops...sorry, Westpac do it for much less!!
$250k pa income and any combo of loans, depsoits and investments with Westpac above $1mill

http://www.westpac.com.au/internet/publish.nsf/Content/PBSVPB+Membership+criteria

 

[ROE]

Paid off all my debt and use the rest for investment...not that I have much debt and fund my parents retirement with the return on my equity.

 

[tech/a]

Roe.

Glad you made contact!!
Ive been looking everywhere for you!!

DAD.

 

[steven1234]

If i was handed the Mil today I would wait for the next major correction and then invest it all in the market. Too good an opportunity to give up in my opinion (i believe we will have a major correction later this year)... if the correction fails to hit property looks good atm.