NationStates Jolt Archive

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

dunno, buy to let probably.

Put it into a savings account and live off the interest.

Put it into a savings account and live off the interest.

Bit old fashioned eh? Don't know about you but the highest savings rate where I am is in the 3% range with CD's sometimes in the 5% range. I suppose if you could live alright on 50k pre-tax it would be ok.

Buy stock. I don't know what in particular, let a broker handle that, but solar energy companies seem to be on the rise. A couple of blue chips as well, of course.

Why, you have a million on you? :D

dunno, buy to let probably.

Something I know well. However what do you think is the best way to go about that and what types of properties?

Why, you have a million on you? :D

I could lend you a million but don't know if you could pay my interest rate. ;)

Bit old fashioned eh? Don't know about you but the highest savings rate where I am is in the 3% range with CD's sometimes in the 5% range. I suppose if you could live alright on 50k pre-tax it would be ok.I could, yes. $50,000 a year (pretax) would be more than enough to live comfortably on.

Divide the million into a proportion that you prefer between

gold/silver/other precious metals
mutual funds
dividend-producing individual stocks
(depending on your market) real estate.

If buying a house, go for a bank repo (in the US anyway) and have it inspected before purchase to make sure it's structurally sound. Cosmetic damage can be repaired on your own.

Good mutual funds provide a good interest rate especially for the long term. That would be your long-term savings for a retirement nest egg.

Dividend-producing stocks can provide a decent trickle of income if you have no mortgage or rent payments.

Precious metals tend to hold their value. It's not usually a good "investment" per se, but gold and silver will offer an alternative financial foundation if the stock market collapses again.

Well one million euros is not barely enough to buy and furnish a flat larger than a shoe box in any half decent part of town around here. As such I would:

Get out of the UK, to a place where cost of living is drastically lower, for me probably north Africa or middle east. Buy some cheap building land and build a modest, well designed, comfortable house with low maintenance costs, building into the design a scope for future expansion and embellishment.

With the rest of the money, buy good agricultural land, and rent it out. The rent I will live on and use to further my own studies and allow me to live a comfortable life whilst working at the job I really want, which will never pay much, and to ensure my sister and mother are OK. If they wished they could also live in my complex along with me and my partner. Since I'm not interested in alcohol, drugs or very expensive food (moderately expensive, perhaps), I should still have a good amount of income spare to invest in expanding and upgrading my house over time without using up more of the capital (a swimming pool, roman style bath/spa, formal gardens etc., and also to make better regular endowments to cultural, academic and religious institutions that I currently support.

If this proved very successful and left me with money to spare after these things, I'd build things for my tenants, such as free or low cost child care, veterinary centres (farming is being killed by cost of medical care for animals, and both farmer and animals suffer because of it), or whatever else was lacking in the local community.

I'd probably buy a couple of duplexes or fourplexes in a suburban bedroom community. Somewhere that property values aren't exorbitant but close enough to a major city where rents are good and likely to be pushed up with urban encroachment. I would definitely hire a property manager to look after them, because I suck at that sort of thing.

I imagine that would eat up about $750-800K, give or take some light reno costs, so the rest I would dump into something safe. GICs, maybe; I'd buy them in stages to mature every month, roll over the principal and pocket the interest.

Well one million euros is not barely enough to buy and furnish a flat larger than a shoe box in any half decent part of town around here. As such I would:

Which might suck if you're someone who wants city living and lots of space but as an investment high costs for buying a small flat equals a high income from rent.


Get out of the UK, to a place where cost of living is drastically lower, for me probably north Africa or middle east.

Yeah, but then you'd have to live in a place like north Africa or the middle east. I can't imagine there's a lot to do there.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

I'd probably fill my gas tank. :(

Either buy to let, or put in an account at Coutts or a bank along those lines, in a high interest account.

buy 50,000 lottery tickets. The odds of winning with a single ticket is about 1:175,711,536, so 175,711,536/50,000= 1:3514. Hmmm, not the best idea. I'd probably invest in real estate, the bottom has fallen out of the market here, so I'd be able to get lots of land, and then I'd just wait for the market to go up again.

Which might suck if you're someone who wants city living and lots of space but as an investment high costs for buying a small flat equals a high income from rent.

True, but this would be my home. Not to rent out. And for long term secure investments, city apartments are not terribly secure compared to actual land.

[quite]
Yeah, but then you'd have to live in a place like north Africa or the middle east. I can't imagine there's a lot to do there.[/QUOTE]

It suits me. I'm not interested in clubs and pubs. For the kind of life I want it suits well. I'll probably wind up out there one day anyway when I'm done with work.

In this hypothetical I would probably buy property but irl I don't want to stop working so that isn't a goal for me.

Buy a million dollars worth of stocks. Use those stocks as collateral to get a loan. Use the loan to buy more stocks. Use stocks as collateral to get a loan etcetera.

This is why people don't entrust me with large sums of money.:)

buy an old mining town on the north yorks moors and some explosives.

sh*ts an giggles, you understand.

ummm seriously? invest heavily in LAND, not property, in the "right" places, after all a cheap field from an old farmer can be worth a fortune to the right people at the right time...

buy classic cars, stuff garenteed to only increase in value, like say, buy quaite a few original, mint condition e-types, and then as many ropey ones as possible, and crush/strip the crap ones, pushing mine up in value...

Click Stand;13647385']Buy a million dollars worth of stocks. Use those stocks as collateral to get a loan. Use the loan to buy more stocks. Use stocks as collateral to get a loan etcetera.

This is why people don't entrust me with large sums of money.:)

That's what margin accounts are. Very dangerous if you don't know what you are doing.

I'd probably fill my gas tank. :(

thread win.

True, but this would be my home. Not to rent out. And for long term secure investments, city apartments are not terribly secure compared to actual land.

[quite]
Yeah, but then you'd have to live in a place like north Africa or the middle east. I can't imagine there's a lot to do there.

It suits me. I'm not interested in clubs and pubs. For the kind of life I want it suits well. I'll probably wind up out there one day anyway when I'm done with work.

Land is always a good bet in the long run if researched correctly. However city apartments can do well. Without going into a lot of detail of personal holdings I can give you an example. In Morocco the wife and I are starting a bit of a property empire of late. Plan on going over in July for our normal stay but plan on buying more property. Will use an example of Tangier's because I know the city well. If one were to buy a flat/apartment/condo near the city center however within walking distance to the beach. That place can rent for about 20k dollars(10k pounds) a year. Those places I am speaking of can be bought for anywhere from 80k USD to 120k USD. You do some quick math on those and the return is fairly good. In fact this is where I am targeting for investment over the next 2-3 years myself.

As for not a lot to do in N Africa. If you pick the city I just mentioned of Tangier it is not a long trip to Spain and has decent access to the rest of the med.

I'd buy forest for the money, I like forest and it's a long term investment as the forest will surely be there long after I'm gone.

If the goal in this scenario wasn't to avoid work I'd start a business. Venture capital gives good returns but I wouldn't trust others to take risks with my money. I'd have to be involved enough in the business to know exactly how it's going.

I'd buy forest for the money, I like forest and it's a long term investment as the forest will surely be there long after I'm gone.

If the goal in this scenario wasn't to avoid work I'd start a business. Venture capital gives good returns but I wouldn't trust others to take risks with my money. I'd have to be involved enough in the business to know exactly how it's going.


Those forest land schemes in Ireland seem to pay good dividends.

Land is always a good bet in the long run if researched correctly. However city apartments can do well. Without going into a lot of detail of personal holdings I can give you an example. In Morocco the wife and I are starting a bit of a property empire of late. Plan on going over in July for our normal stay but plan on buying more property. Will use an example of Tangier's because I know the city well. If one were to buy a flat/apartment/condo near the city center however within walking distance to the beach. That place can rent for about 20k dollars(10k pounds) a year. Those places I am speaking of can be bought for anywhere from 80k USD to 120k USD. You do some quick math on those and the return is fairly good. In fact this is where I am targeting for investment over the next 2-3 years myself.

As for not a lot to do in N Africa. If you pick the city I just mentioned of Tangier it is not a long trip to Spain and has decent access to the rest of the med.

My family is part Spanish so we had some small bits of land in the south east from years and years ago. However it never was very productive so the rents were not good (some of our family used it themselves also, I think) but in the end it was sold to developers. The upshot was I got a garden apartment out of it (or more specifically 1 and half apartments for some reason I don't understand)

Tangier is a nice city really, I know it, though not well, the only place in Morocco I'm fond of, truth be told. I would probably go with Egypt, because I know the place very well, know people personally and professionally, and also know the system. I wouldn't mess around with land in the New Valley projects, too risky. The central delta around Tanta is the best bet, very good and productive land, can command good rents and demand is high and the irrigation is good so the future is sound too. Around Kom Ombo is another good bet, and a lot of demand due to the resettlement there.

I love to travel, but mostly stay within the Mid East / N Africa area anyway. The only real reason I'm in Europe is for the academic opportunities and facilities. I haven't even been to the beach in 4 years, which is somewhat scary now I come to think of it.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

Step 1: Come up with a million dollars
Step 2: I'm never going to have a million dollars so nvm

Bit old fashioned eh? Don't know about you but the highest savings rate where I am is in the 3% range with CD's sometimes in the 5% range. I suppose if you could live alright on 50k pre-tax it would be ok.
8%+ out here in Oz (http://www.ingdirect.com.au/savings/our_products/term_deposits.htm), even more in NZ and Iceland. Certainly not a lot of risk, and with $70,000 every 180 days you could live quite comfortably, yes. Plus, you'd likely make some money on the exchange rates as well, since the general trend for the $A is up, and the $US seems to be down.

It all depends on your appetite, doesn't it.

Put it in a savings acoount. Work and add 2000 every year until it hits 2 million. Live off interest. Buy lotsa games and be a lazy bum.:)

That's what margin accounts are. Very dangerous if you don't know what you are doing.

I met a guy who was ruined doing that. All it takes is one hiccup in the economy and all the banks want their money back. That is when credit cards come in handy. ;)

Where the million dollars comes from is important. If it's just a gift to me, I'd feel like a bit of an asshole if I thought only of myself when deciding to invest it.

Putting it in a term account seems pretty much like dodging the decision. Really, that's just letting a financial institution make the real investment decisions.

I might look into giving micro-loans to really poor people. Risky perhaps, but at least "my" money would be doing some good not just participating neutrally in a capitalist system I cannot honestly say I support.

To be brutally honest, and off-topic: I don't think I would invest it, unless you consider buying a cheap block and building a very nice workshop on it "investment." I'd spend most of it, basically, to directly empower myself in making physical things, instead of relying on "money making money."
The rest would probably go to charity.

I would put it into a trust for my children, half for each. I would direct it to be invested in a mix of mutual funds, with about 30% in growth and income and the rest evenly (more or less) distributed in long term earners.

Put it in a savings acoount. Work and add 2000 every year until it hits 2 million. Live off interest. Buy lotsa games and be a lazy bum.:)

You got the lazy bum bit worked out already...? ;)

My family is part Spanish so we had some small bits of land in the south east from years and years ago. However it never was very productive so the rents were not good (some of our family used it themselves also, I think) but in the end it was sold to developers. The upshot was I got a garden apartment out of it (or more specifically 1 and half apartments for some reason I don't understand)

Tangier is a nice city really, I know it, though not well, the only place in Morocco I'm fond of, truth be told. I would probably go with Egypt, because I know the place very well, know people personally and professionally, and also know the system. I wouldn't mess around with land in the New Valley projects, too risky. The central delta around Tanta is the best bet, very good and productive land, can command good rents and demand is high and the irrigation is good so the future is sound too. Around Kom Ombo is another good bet, and a lot of demand due to the resettlement there.

I love to travel, but mostly stay within the Mid East / N Africa area anyway. The only real reason I'm in Europe is for the academic opportunities and facilities. I haven't even been to the beach in 4 years, which is somewhat scary now I come to think of it.

Problem I see with Egypt is the government. I don't know how long the current system can be held in place. Government stability is so key in investing in any aspect of a nations economy.

You got the lazy bum bit worked out already...?
Yep!:D I need lots of practice!

Step 1: Come up with a million dollars
Step 2: I'm never going to have a million dollars so nvm

Everyone can basically come up with a million over a course of a lifetime. The first million is obviously the hardest and done right the second million and so on get easier.

Everyone can basically come up with a million over a course of a lifetime. The first million is obviously the hardest and done right the second million and so on get easier.

Can you expand on this?

I would move to Japan, buy a nice Suzuki motorbike, join a gang and cruise the country for a few years with my gf.

Can you expand on this?

I am just saying a typical family (two partners) can achieve a million dollars net worth. There are several ways of doing this. First their primary residence and then their retirement savings. That is for a typical family. Now you then run into the folks that buy a investment property or two and or put more into their retirement than average. Those people can achieve multi-millionaire status. After one does achieve this level they can then turn around and make another million in less than 10yrs if done right. You could do it even quicker if you can handle a bit or risk.

I am just saying a typical family (two partners) can achieve a million dollars net worth.

It's not quite the same as having a million spare but I do see what you're saying. However, even so those people are far from "everyone".


You could do it even quicker if you can handle a bit or risk.

Or much, much slower if the gamble doesn't pay off

It's not quite the same as having a million spare but I do see what you're saying. However, even so those people are far from "everyone".



Or much, much slower if the gamble doesn't pay off

I think most people that get a bit of education can do it. I can tell you careers you can get into without even going to college that one could make decent money in. So it is within the reach of "most" people. As for the million I mentioned you can use it as leverage to make more money.

Energy firms in key emerging markets, specifically China and India. Especially China, because they're not going to introduce environmental laws for a long-ass time.

I think most people that get a bit of education can do it. I can tell you careers you can get into without even going to college that one could make decent money in. So it is within the reach of "most" people. As for the million I mentioned you can use it as leverage to make more money.

I dunno, don't you you need some of the composition of that million to live in?

I dunno, don't you you need some of the composition of that million to live in?

Well the assumption is that the couple is making money while still working. Many hit the million mark before they are done with their careers and retire.

Energy firms in key emerging markets, specifically China and India. Especially China, because they're not going to introduce environmental laws for a long-ass time.

India and China are great emerging markets. However I don't agree 100% with the lack of regulations on the enviroment really boosts the bottom line.

I could lend you a million but don't know if you could pay my interest rate. ;)

Not on a teacher's salary, unless we could work out another arrangement. ;)

Bit old fashioned eh? Don't know about you but the highest savings rate where I am is in the 3% range with CD's sometimes in the 5% range. I suppose if you could live alright on 50k pre-tax it would be ok.
You could open an overseas fund account. NZ is offering 8.5% pa return on their term deposits, giving you $85k a year which is getting pretty substantial.

As for me, assuming it's $1 mill US we're talking about here, I'd prob buy two properties for rentals, along with a cheap one here in HK for me to live in and a more expenisve one back in NZ out on the coast for my early retirement.
Although I could conceivably buy all these with the money, I'd instead borrow just enough money for the two rentals + coastal property rent to easily cover the mortgage repayments of the 10 year loan, leaving me enough cash left over to invest as I see fit. This would give me another few years of working, saving and investing to build up a sizeable nest egg.
Then after 6-8 years, I'd pay off the remainder of the loan and retire out on the coast with 3 rental properties giving me pretty much everything I need to more than survive, with the investments & savings allowing me to indulge and live comfortably.

Ponzi Time! (http://www.sec.gov/answers/ponzi.htm)

Can you expand on this?
think about it:
Say you've got a million $ spare.
If you put in on term deposit at 8% (what NZ banks are offering), it would take just 9 years compund interest for it to double.
And of course that's just from leaving it in the bank. Invested right and you could easily be getting double that interest rate. 20% ROI reinvested would double that mill within 4 years.
Heck, between 05-07, some investment firms were getting up to 100% annual ROI. All high risk, mostly in the emerging markets. A lot of them are now registering -% returns for this year. But still not so negative as to wipe out all the huge gains made the previous two years.

Problem of course is that not many have that sort of money spare to just sit untouched for several years. Which is why they always say the first mill is the hardest.

edit:
Another example of why it's easier to make more once you have some - and, as well, why the NZ$ is such a widely traded currency - is that lots of people - if they have the financial security (and that's the biggie) - can get extremely low interest (they were 0% for a while!) loans from Japanese banks and depositing the entire loan amount into NZ banks offering as I mentioned very high interest rates. The interest gained would eventually pay off the loan, leaving you with the loan amount - thus costing you nothing. As close to free money as you're ever likely to get.
But of course, us poor schlubs can't get these loans. They only offer them to people who have so much money already they don't actually need them.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?
Rental Property
-- Residential apartment building(s)
Strip Mall
-- Make sure there's room for a drycleaner and a nail salon.
A couple Waffle House franchises.
-- It's a no-fail proposition in Georgia.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

Wow, you are asking an awful lot from a million dollars. I do not think that it could be done. More importantly, I do not think that it should be done. I guess what I am getting at is that having a million dollars and living off of dividends or interest is kind of like eating your seed corn. That money should be reinvested. This would free up your wages for living off of instead of doing the double duty of living off of and using some for investments.

I million is not a lot of money if you are a young person and you want to quit working. Overtime the inflation will be pretty rough and you will not be reinvesting your earnings if you are using it to live off of. It could be done, but I do not think that you would be living comfortably.

schnip

Yeah, I know it's a lot easier to make money if you've got money. I was asking him to explain why he thought that "everyone" could accumulate a million dollars net worth.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

I'd buy a property here in Edmonton where rents are obscene...and rent it out. I'd buy something a bit older, built in the 80s probably...something I'd actually want to live in later on. Fix it a bit...probably put about $100,000 into renos. That would cost me roughtly $450,000 right there, but it would bring in $2500 a month at the very least...more if we convert the basement and rent it out per floor.

Then I'd go to Chile, build a house on the beach for about $50,000 and buy a couple houses in the capital and rent them out so I'd have more income. The rest, I'd sock away in a Chilean bank where you actually get interest.

Something I know well. However what do you think is the best way to go about that and what types of properties?

probably HMO licensed properties in a student city/area. tenants don't expect much and you can get the maximum number of tenants into a property. i've stayed in places that should normally have been max two or three bedroom properties that have had 4-5 bedrooms because of room partitions and conversions.

Yeah, I know it's a lot easier to make money if you've got money. I was asking him to explain why he thought that "everyone" could accumulate a million dollars net worth.

Everyone could accumulate a million dollars easily. The only reason why it seems difficult to accumulate so much is that it takes varying amounts of time to accomplish it. There are all manner of calculators available online that are designed to show how very little amounts of money invested regularly over long periods of time can give you a million dollars. Also, a million dollars becomes easier to get every year because of inflation. If inflation is 3% then in 25 years or so amillion dollars is really only $500,000.

*burst into thread* I heard money

oh right...well I'd buy into a well established bar and use the Internet for ideas or possibly invest in some new technology (so I could be a capitalist and constantly call myself the man)

I think most people that get a bit of education can do it. I can tell you careers you can get into without even going to college that one could make decent money in. So it is within the reach of "most" people. As for the million I mentioned you can use it as leverage to make more money.

:eek: really? are we talking the military here?

Buy lottery tickets.

:eek: really? are we talking the military here?


When I was actually working for a company other than my own I was making near 100k a year in sales in the 90's. That position I was in and most of the sales positions I know of do not require college education. Our insurance sales agents that work our office now do not have college degrees. In fact I hired most of them and can tell you that they don't. The range of income is about 75k-150k a year. There are many jobs out there that don't require college education to make decent money.

Everyone could accumulate a million dollars easily. The only reason why it seems difficult to accumulate so much is that it takes varying amounts of time to accomplish it. There are all manner of calculators available online that are designed to show how very little amounts of money invested regularly over long periods of time can give you a million dollars. Also, a million dollars becomes easier to get every year because of inflation. If inflation is 3% then in 25 years or so amillion dollars is really only $500,000.


Exactly and the saying goes which I find is true is that the first million is the hardest to make.

When I was actually working for a company other than my own I was making near 100k a year in sales in the 90's. That position I was in and most of the sales positions I know of do not require college education. Our insurance sales agents that work our office now do not have college degrees. In fact I hired most of them and can tell you that they don't. The range of income is about 75k-150k a year. There are many jobs out there that don't require college education to make decent money.

I can think of loads of ways to earn decent money but I don't agree that everyone can earn like that.

Everyone could accumulate a million dollars easily. The only reason why it seems difficult to accumulate so much is that it takes varying amounts of time to accomplish it. There are all manner of calculators available online that are designed to show how very little amounts of money invested regularly over long periods of time can give you a million dollars. Also, a million dollars becomes easier to get every year because of inflation. If inflation is 3% then in 25 years or so amillion dollars is really only $500,000.

The last point is a little cheap wouldn't you agree?

Assuming no one posts before I finish, this will be the sixtieth post. There are 59 others that all have slightly different ideas, or comments about these different ideas, and some are bound to be better than the others. My plan: split $250,000 up among all of the people here equally, and tell each one to implement his or her suggested plan. At the end of a time period, say twenty years, see how much everyone has. Whoever has the most gets $100,000, and you invest the leftover $650,000 doing what they suggest.

Tim Horton's, Fort McMurray.

I'd look in to staffing it before construction begins.

Assuming no one posts before I finish, this will be the sixtieth post. There are 59 others that all have slightly different ideas, or comments about these different ideas, and some are bound to be better than the others. My plan: split $250,000 up among all of the people here equally, and tell each one to implement his or her suggested plan. At the end of a time period, say twenty years, see how much everyone has. Whoever has the most gets $100,000, and you invest the leftover $650,000 doing what they suggest.

LOl, I wish we could do that. It would be a fun contest.

Wow, you are asking an awful lot from a million dollars. I do not think that it could be done. More importantly, I do not think that it should be done. I guess what I am getting at is that having a million dollars and living off of dividends or interest is kind of like eating your seed corn. That money should be reinvested. This would free up your wages for living off of instead of doing the double duty of living off of and using some for investments.

I million is not a lot of money if you are a young person and you want to quit working. Overtime the inflation will be pretty rough and you will not be reinvesting your earnings if you are using it to live off of. It could be done, but I do not think that you would be living comfortably.Well, if the people talking about NZ are right and I could get $80,000 a year, I could take half to live off of and leave the rest in the account.

http://www.daveramsey.com/media/pdf/forms/ben_and_arthur_military.pdf

This tells you how investing can REALLY pay off. In time. LOTS of time.

I'd spend 3 years traveling the world and living as adventurously as possible on $300,000 a year. Then I'd retire somewhere with a low cost of living and try to write a successful novel (using my experiences from the 3 years of travel and couple decades before that as inspiration) before my remaining $100,000 wore out.

Exactly and the saying goes which I find is true is that the first million is the hardest to make.

Absolutely. This is espescially true if the first million is invested in appreciating or income generating assets. Even if you blew your first million it would still be easier to make the second due to inflation as long as we are talking about regular minor inflation and not the more nasty versions of it like stagflation.

Marrakech II did you just come into possession of a million dollars?

If so I suggest you send it to me ;)

Otherwise, place it in a high interest bank account, depending where you are I do know of banks that have 8% giving you $80000 a year you could live reasonably comfortable on that.

Also, a million dollars becomes easier to get every year because of inflation. If inflation is 3% then in 25 years or so amillion dollars is really only $500,000.
Only if you take that million out of your bank account and stick it under your mattress. True, some people do do that, but they're mostly old cranks who aren't going to live another 25 years.
With a million bucks to invest, you should easily find some safe low-risk investment that more than covers inflation. Meaning that million $ is going to still be worth $1 mill in 25 yrs time (in 25yrs-time-money).

Split in half. $500,000 goes into a savings account. $500,000 goes into reliable investments, like gold, or Activision Blizzard.

Question here is how would you invest a million dollars or Euros for that matter? The goal is to give yourself a sustaining income so that you could live comfortable without having to work. How would you go about that?

http://www.google.com/search?hl=en&q=Green+Mutual+Funds

It's a long-term idea, but one that will likely pay off quite nicely.

Rolling squid;13647370']buy 50,000 lottery tickets. The odds of winning with a single ticket is about 1:175,711,536, so 175,711,536/50,000= 1:3514. Hmmm, not the best idea. I'd probably invest in real estate, the bottom has fallen out of the market here, so I'd be able to get lots of land, and then I'd just wait for the market to go up again.

It is not only provable but also common sense that no matter what your chances of winning are, the amount of money spent on the tickets will be less than the prize multiplied by the chance of winning.

Nobody said it had to be legal, so coke dealing springs to my albeit slightly twisted mind.

1. Talk to a professional adviser who knows about your taxation regime / circumstances, income requirements, attitude to investment risk, estate situation in the event of your death, etc.

Be willing to pay - anywhere in between 1.5-2% overall annual management charges is about right. Make sure you trust the adviser, and you understand what he or she is saying. Too often I see people put into complicated investment strategies when the size of the portfolio justify it (and $1m, £1m or E1m is not a big portfolio), basically for the adviser's benefit rather than the investor's.

2. Personal opinion, and not to be construed in any way as advice pertinent to your situation... Cash - markets are very volatile, and due a correction in the late summer / autumn. A lot of the bad news about CDOs hasn't even come out yet, and consumer confidence is dropping like a stone. Add in the structural problems from the rapidly growing BRICs economies, rising commodity prices and inflationary pressures, cash is a very good place to be. Avoid property, unless you're actually buying somewhere to live - as an investment vehicle, it's worse than awful right now.

We're taking occasional strategic positions in equities or specialist equity vehicles, but that's mostly to take advantage of market volatility, and catching the bottom of the curve. Profits get taken sharpish.

Nobody said it had to be legal, so coke dealing springs to my albeit slightly twisted mind.

That's a really bad idea! It's an anti-investment (gambling with your life and liberty) and furthermore the interest you earn isn't legal. You can't spend it until you've laundered it somehow.

I'm sure there are worse investments. Perhaps you misread the question? ; )

I could probably comfortably live off the interest of a cash savings account with €1m in it, perhaps less so with $1m on it.

To accumulate; cash is king right now; the time to go back into equities will probably arrive at some point in 2009.

If I did acquire such a sum of money, first thing I'd do would be to buy a house and fill it with shiny and comfortable furnishings (not even lavish necessarily, just shiny and comfy) and put the rest into a cash account. In the UK at this point, the kind of house I'd want (a one- or possibly two-bedroom house in my current home city) plus decoration would come to about £175,000/$350,000. If I then had $650,000/£325,000 left, put it in cash savings, that's accumulating interest at... well at 5% per year that's about £16,000. I could live off £16,000 per year given that all housing costs would be gone, but I'd be much happier on £20-25,000. Start with £1m or even €1m, and that'd be possible (and then some).

this country: land.

Drink it all.

Nobody said it had to be legal, so coke dealing springs to my albeit slightly twisted mind.

It's not illegal until you get caught! Anyway no I didn't put that caveat on the post. Funny you mention that though. Most people do things illegally in one form or another to either keep the money they have or make money. Most of the time it has to do with some type of tax evasion or insurance fraud.

Drink it all.

No need for any money after you are dead! Some people go this method.

this country: land.

Land in most countries. With basic knowledge anyone can get into land and at least maintain their initial investment and probably gain a bit of appreciation to boot.

Only if you take that million out of your bank account and stick it under your mattress. True, some people do do that, but they're mostly old cranks who aren't going to live another 25 years.
With a million bucks to invest, you should easily find some safe low-risk investment that more than covers inflation. Meaning that million $ is going to still be worth $1 mill in 25 yrs time (in 25yrs-time-money).

I doubt it. There is no safe low risk investment that really does well as a long term investment compared to stock index funds or other investments that tap into the appreciation power of stock. The highest yielding fairly low risk investment that I am aware of are top quality investment grade corporate bonds.

Safe low risk investments are typically cash investments like US Savings bonds, T-bills, savings accounts, and money market accounts.

Let's assume that you are in the 25% tax bracket. Let us say that you invested your 1 million in an AAA investment grade bond fund. Let us assume that the interest is 5.25% a year. Let us also assume that you pay 0.4% in costs. Let us also assume that inflation is at 3.5%

You start with that 5.25% of interest which is $52,500. First you subtract out your taxes which are $13,125 leaving $38,875. Then you subtract your costs which are $396.20. Then you subtract your inflation which is 35,000. You are only really left with about $3,478 dollars per year of actual real growth. This is a pretty weak real return on a million dollar investment.