Posted by Chloe on March 5, 2007, 7:44 am
> Thanks for all the replies. To clear things up, I inherited ~
> $1.5million...yep thats right $1.5million. I am going to invest the
> remaining 1 million and hope it grows. I don't want to leave CA yet
> until my kids go off to collage(I am divorced). Unless I screw up
> real bad, I won't loose my job (union job in the entertainment indus
> with lots of seniority (25yrs)). I make approx 90K/y (that was before
> the inheritance). I have lived in condos before and they are very
> hard to resell and it is nothing more than a glorified apartment.
> Also, my current hobby is not politically correct in CA so a house
> would give me a much higher degree of privacy (I'm into cowboy action
> shooting, etc.). Does any of this make any difference??
I'm guessing where you live $500K buys a modest house. Based only on what
you've said, I'd look into buying one in that price range, but with maybe a
50% mortgage. It doesn't seem smart for someone with your amount of
resources to keep on paying rent. But do everything you can to make sure
that money you put into the house is a decent investment, i.e., in a stable
neighborhood where the homes will pretty much hold their value.
If you can more or less keep to your current standard of living, that $1.5
million can really work for you--in terms of making life easier and more
pleasant--over a long period of time.
Posted by John Weiss on March 6, 2007, 8:53 am
>> A one-time analysis will cost a couple thousand dollars, but may save
>> you many times that in the future.
> Unlikely to be worth the fee with a situation as simple as his.
Inheriting $1.5 million is NEVER a "simple" situation. The mere fact that
he is seeking advice here already on just a piece of it demonstrates that he
NEEDS professional advice.
Posted by Rod Speed on March 6, 2007, 1:15 pm
>>> A one-time analysis will cost a couple thousand dollars, but may save you
many times that in the
>>> future.
>> Unlikely to be worth the fee with a situation as simple as his.
> Inheriting $1.5 million is NEVER a "simple" situation.
Wrong. Its actually simpler because there is a considerable
surplus of assets so there isnt the same need to get the best
return on those assets, so the lower risk investments are viable.
> The mere fact that he is seeking advice here already on just a piece of it
demonstrates that he
> NEEDS professional advice.
Wrong again. ALL it demonstrates is that he needs
ADVICE, not that he has to pay a parasite to get it.
One of the well regarded books on the subject is a MUCH better
source of the advice, because that can be publicly discussed.
He's clearly quite capable of rationally considering the alternatives
and the problem with 'professional advice' is that is very difficult to
get any real handle on whether the 'professional' has much of a clue.
'certified' cuts no mustard.
Posted by John Weiss on March 6, 2007, 9:08 am
>>> A one-time analysis will cost a couple thousand dollars, but may save
>>> you many times that in the future.
> And can cost you heaps over the long haul with their ongoing fees too.
Yet again, rodless seedless can't read or comprehend...
There are NO ongoing fees with a "one-time analysis"!
> There's no real need to pay someone for that sort of advice, there are
> plenty
> of perfectly adequate books that spell that out for a hell of a lot lower
> cost.
NONE of those books can sort through the plethora of current investment
options and give sound, target advice based on the specifics of a single
personal situation. In fact, you can't even come up with a single title
that will even approach that level.
Also, since the OP already has a full-time job, he may not have the time to
do the amount of research required.
>> That could be especially helpful if you aren't used to having extra money
>> to invest, or if you do invest but only do so in your company's 401(k)
>> plan where there aren't many choices and therefore isn't much reason to
>> learn about it in depth.
> Yes, but a decent book does that a hell of a lot cheaper.
Which one?
> I wont suggest a particular book because I'm in a different
> country with very different tax laws and very different detail
> on the equivalent of the 401(k) plan etc.
Yet again, a cop-out totally irrelevant to the OP's situation -- NONE of his
$1.5 million has anything to do with a 401k plan! Besides, you can't even
suggest a single title that would cover the OP's situation under Australian
laws, either!
> At least with a book, others have commented on the specifics
> of what they recommend approach wise. That doesnt normally
> happen with a financial advisor you employ yourself, so if you
> have in fact got a dud, you arent likely to find that out until its
> much too late and he has steered you in the wrong direction etc.
Let's see... You claim a person can learn all he needs from a book, but
that same person can't figure out after talking with a few financial
planners, if any of them will give him good advice? If he can't read and
follow a couple pages of pointers on finding, interviewing, and choosing a
financial planner, how is he supposed to follow thousands of pages in a pile
of books to formulate, initiate, and execute a financial plan?!?
> You dont need to be 'certified' to be able to do that basic stuff.
What "basic stuff" is that?
Posted by Rod Speed on March 6, 2007, 1:30 pm
>>>> A one-time analysis will cost a couple thousand dollars, but may save you
many times that in
>>>> the future.
>> And can cost you heaps over the long haul with their ongoing fees too.
> Yet again, rodless seedless can't read or comprehend...
We'll see...
> There are NO ongoing fees with a "one-time analysis"!
Depends entirely on what that analysis recommends.
Its very unlikely indeed that any one time analysis by a 'professional'
wont involve any ongoing fees to someone in what it recommends with
the excess of the inheritance over the house purchase being considered.
>> There's no real need to pay someone for that sort of advice, there are plenty
>> of perfectly adequate books that spell that out for a hell of a lot lower
cost.
> NONE of those books can sort through the plethora of current investment
options and give sound,
> target advice based on the specifics of a single personal situation.
Wrong again, his specific details arent anything like unique.
> In fact, you can't even come up with a single title that will even approach
that level.
> Also, since the OP already has a full-time job, he may not have the time to do
the amount of
> research required.
No 'research' required with the more conservative approaches.
>>> That could be especially helpful if you aren't used to having extra money to
invest, or if you
>>> do invest but only do so in your company's 401(k) plan where there aren't
many choices
>>>> and therefore isn't much reason to learn about it in depth.
>> Yes, but a decent book does that a hell of a lot cheaper.
> Which one?
Try reading the post before replying.
>> I wont suggest a particular book because I'm in a different
>> country with very different tax laws and very different detail
>> on the equivalent of the 401(k) plan etc.
> Yet again, a cop-out totally irrelevant to the OP's situation --
> NONE of his $1.5 million has anything to do with a 401k plan!
Wrong again with what that 'professional advice' may suggest.
> Besides, you can't even suggest a single title that would cover the OP's
situation under
> Australian laws, either!
Wrong, as always. Whittaker's are just that.
>> At least with a book, others have commented on the specifics
>> of what they recommend approach wise. That doesnt normally
>> happen with a financial advisor you employ yourself, so if you
>> have in fact got a dud, you arent likely to find that out until its
>> much too late and he has steered you in the wrong direction etc.
> Let's see... You claim a person can learn all he needs from a book, but that
same person can't
> figure out after talking with a few financial planners, if any of them will
give him good advice?
Nope, I ACTUALLY said that with a well regarded book, the approach that
the author takes can be publicly discussed and the arguments considered.
No one can comment on what a particular financial planner recommends.
And you're slithering off to multiple financial planners at an even higher cost
now that the downsides in what you originally suggested has been exposed.
> If he can't read and follow a couple pages of pointers on finding,
interviewing, and choosing a
> financial planner,
None of which say anything useful about how to avoid the duds.
> how is he supposed to follow thousands of pages in a pile of books to
formulate, initiate, and
> execute a financial plan?!?
Never ever could bullshit its way out of a wet paper bag.
>> You dont need to be 'certified' to be able to do that basic stuff.
> What "basic stuff" is that?
The question he asked, which he got very adequately answered for free, and
the supplementary question of what do to with the excess of the inheritance.
He presumably didnt ask about funding the kids' college educations etc likely
because he considers that he understands that well enough to not need it
answered.
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> $1.5million...yep thats right $1.5million. I am going to invest the
> remaining 1 million and hope it grows. I don't want to leave CA yet
> until my kids go off to collage(I am divorced). Unless I screw up
> real bad, I won't loose my job (union job in the entertainment indus
> with lots of seniority (25yrs)). I make approx 90K/y (that was before
> the inheritance). I have lived in condos before and they are very
> hard to resell and it is nothing more than a glorified apartment.
> Also, my current hobby is not politically correct in CA so a house
> would give me a much higher degree of privacy (I'm into cowboy action
> shooting, etc.). Does any of this make any difference??