Large Investment - Any Financial Advisors?

[benk777]

In the near future I will be coming into an after-tax sum of money in the low-mid six figures. Around the same time my wife will be delivering our first child, and will be taking 1-2 years off work. At first I thought I would pay off our mortgage with the money so that a single income would be more manageable. After further thought, my plan is to put a majority of the funds with a financial advisor, and enough to cover one year's mortgage payments in a 4.5-5% money market account. For each year that my wife is out of work, I would annually transfer enough from the investment to the money market account to cover the mortgage.

If I can get 5% with the money market account, and 8.5% on the large investment, I can basically pay my mortgage with the annual earnings and do a little better than break even. If I can earn upwards of 10% I could afford more of a mortgage, and therefore a larger house.

My questions are:
1. How likely is it to earn 8.5% annually on a large investment? What about earning 10.5%?
2. What type of investments would you recommend?
3. What particular firms/advisors would you recommend and why?

I know there are many intelligent heads on this forum, and there are a few people with a good amount of net worth. Please lend advice if you have any. Thanks.

Sincerely,

Ben

[jsteinhauer]

My advice is to NOT get your financial advice from the Blu-ray Forum.

[benk777]

I'm just testing the waters to see what ideas are out there. Trust me, I don't plan on taking the first advice I get and running with it. I was just hoping that there were a few financial advisors on the forum that would be able to give me some pointers.


Ben

[aygie]

Originally Posted by benk777

In the near future I will be coming into an after-tax sum of money in the low-mid six figures. Around the same time my wife will be delivering our first child, and will be taking 1-2 years off work. At first I thought I would pay off our mortgage with the money so that a single income would be more manageable. After further thought, my plan is to put a majority of the funds with a financial advisor, and enough to cover one year's mortgage payments in a 4.5-5% money market account. For each year that my wife is out of work, I would annually transfer enough from the investment to the money market account to cover the mortgage.

If I can get 5% with the money market account, and 8.5% on the large investment, I can basically pay my mortgage with the annual earnings and do a little better than break even. If I can earn upwards of 10% I could afford more of a mortgage, and therefore a larger house.

My questions are:
1. How likely is it to earn 8.5% annually on a large investment? What about earning 10.5%?
2. What type of investments would you recommend?
3. What particular firms/advisors would you recommend and why?

I know there are many intelligent heads on this forum, and there are a few people with a good amount of net worth. Please lend advice if you have any. Thanks.

Sincerely,

Ben

I'm not sure where you live and without knowing your amount (i don't want to know either ) its hard to say if you'll get 8%. With stock markets in the way they are in the states could be a hard year.

Quilters are good investors but seriously set up a trust and let them sort it out.

AND DO IT ALL OFFSHORE! Perfectly legal tax avoidance.

[aygie]

Sorry just saw mid-low six figures!

PS 25% cash 25%bonds 50%equities.

[benk777]

Correct me if I'm wrong, but with an offshore account I'll still pay taxes on any income that I "pay" myself back to the states, correct? Plus, don't you need a set up and established offshore account well before you can deposit funds?


Ben

[clyon]

Originally Posted by benk777

In the near future I will be coming into an after-tax sum of money in the low-mid six figures. Around the same time my wife will be delivering our first child, and will be taking 1-2 years off work. At first I thought I would pay off our mortgage with the money so that a single income would be more manageable. After further thought, my plan is to put a majority of the funds with a financial advisor, and enough to cover one year's mortgage payments in a 4.5-5% money market account. For each year that my wife is out of work, I would annually transfer enough from the investment to the money market account to cover the mortgage.

If I can get 5% with the money market account, and 8.5% on the large investment, I can basically pay my mortgage with the annual earnings and do a little better than break even. If I can earn upwards of 10% I could afford more of a mortgage, and therefore a larger house.

My questions are:
1. How likely is it to earn 8.5% annually on a large investment? What about earning 10.5%?
2. What type of investments would you recommend?
3. What particular firms/advisors would you recommend and why?

I know there are many intelligent heads on this forum, and there are a few people with a good amount of net worth. Please lend advice if you have any. Thanks.

Sincerely,

Ben

Something tax free...

A close relative of mine has has some kinda of account that he is guaranteed a set % a year, I thinks it is 8%-10%, tax free & there are 3 or 4 diffrent options for how the money is invested. So he did the risky one & made about 18% last year on a $500,000 investment, the BUT part is it a min investment & think it starts at $100,000. I think he got it throw Morgan Stanley (?) or Bank of America (?).
Next time I see him & if I remember, I will ask him the the account type.



For me, I invest in GOLD & Platinum.

[theknub]

ben, without getting too much into it, there are plenty of options out there. however, with a large sum i'd most likely split it up a bit. why put all ur eggs in one basket?

that being said, there are several places to put ur money. for example, i run / manage a private mortgage fund that regularly returns ~9%. some return more or less depending upon risk of the investment. remember, there are some fund out there that have an irr (internal rate of return) of at least 50%. jc flowers for example recently backed out of sallie mae (i believe) because it was returning an unsatisfactory 14%. there is something out there for ya, but it depends on the risk that you are willing to take.

[clyon]

Originally Posted by benk777

Correct me if I'm wrong, but with an offshore account I'll still pay taxes on any income that I "pay" myself back to the states, correct? Plus, don't you need a set up and established offshore account well before you can deposit funds?


Ben

Well you use an ATM card that is linked too the off shore account to do withdraws & use that ATM to pay for everything. You try to never too 'touch' the money & use a safety deposit box(s) at a bank(s) to store cash.

[aygie]

Originally Posted by benk777

Correct me if I'm wrong, but with an offshore account I'll still pay taxes on any income that I "pay" myself back to the states, correct? Plus, don't you need a set up and established offshore account well before you can deposit funds?


Ben

Hi

yeah your right if the money goes back to you you have to declare it, thats why i was mentioning a trust. a trust is a strange concept for many but it is a great idea for keeping your money secure for the future.

Basically you set up a trust, and you put your money in the trust. Its no longer your money, its the trusts and you will be a beneficiary, the trust will pay for stuff (school fees, car, house etc) and you wont be taxed cause theoretically the trust owns that stuff.

Look into it, it sounds more daunting than what it is.

Oh and no offshore accounts can be opened any way you want as long as you have passport etc, best bet set up an offshore trust and they'll do the rest.

[aygie]

Originally Posted by clyon

Well you use an ATM card that is linked too the off shore account to do withdraws & use that ATM to pay for everything. You try to never too 'touch' the money & use a safety deposit box(s) at a bank(s) to store cash.

hehe busted.

[IvanDrago]

If you take only one piece of advice from this thread, then this is the one you should take:

DI-VER-SI-FY


PS. Careful with the off shore tax dealings, the IRS seems to close loopholes all the time around and that if you don't pay what you owe, you're gonna be taking showers with Bubba.

[bhampton]

I used to be big on CDs but now it's all about the Blu Ray.

-Brian