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Follower ○○

$1,000,000.00 Challenge ?

So, how would you invest a cool $million if your number one priority was Safety . . . with a cap S? Anything legal, conservative, and Safe is fair game. Questions? Ideas? Thanks for your input.

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11 Replies
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Explorer ○

Re: $1,000,000.00 Challenge ?

Laddered CDs.

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Frequent Contributor

Re: $1,000,000.00 Challenge ?

For how long?

40 Reward Checking Accounts at (4% APY, $25K) each.

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Explorer ○

Re: $1,000,000.00 Challenge ?

The # of steps and duration may be dictated by your occasional need for some of the $$. I use to use a 3 year ladder but am now down to 2 years.

This is backup cash for my spouse in case of my untimely demise.

Consider jumbo CDs if they offer a better rate. Of course they must be FDIC insured. You might consider 2 or 3 different institutions.

I never go for rates attracting new customers.

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Follower ○○

Re: $1,000,000.00 Challenge ?

Thanks. Let's say 10 years. Don't need to tap into the funds.

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Frequent Contributor

Re: $1,000,000.00 Challenge ?


 

@whocansay wrote:

Thanks. Let's say 10 years. Don't need to tap into the funds.

        A muni fund. We’ve had different ones on reinvestment for 40+ years. The cities still exist, you have a better chance keeping up with your personal inflation rate then any bank for profit products and they’re tax friendly. 

                 I don’t think given a ten year horizon the yield will vary much. Make sure you take into account the loss of purchasing power to “safety”. No use having small principle gains after taxes if your cash buys less as a result over time. One mil now may buy 900k worth of products and services in 10 years. Our muni went down in value about 5-10% recently, recovered and has paid 30% in reinvested dividends for the last 10 years Fed tax free. 

                  If that isn’t Safe enough that’s why banks exist. There really is no Safe though. Cash should be for safety of eminent large purposes or quick turnover to minimize the effects of inflation.


 

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Frequent Contributor

Re: $1,000,000.00 Challenge ?

Define safe. What is the max loss you are willing to have?

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Explorer ○○

Re: $1,000,000.00 Challenge ?


@whocansay wrote:

Thanks. Let's say 10 years. Don't need to tap into the funds.


4 GIC’s @ $250K each. I have one earning 3.5% API, 9 year term. Bought it when I retired as sequence-of-return risk mitigation. 

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Frequent Contributor

Re: $1,000,000.00 Challenge ?


@whocansay wrote:

Thanks. Let's say 10 years. Don't need to tap into the funds.


Then put half in S&P 500 fund and the other half in treasuries. Set and forget. Unless you really dislike making money?

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Participant ○○○

Re: $1,000,000.00 Challenge ?

50% World Stocks + 50% USD Hedged World Bonds

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Follower ○○

Re: $1,000,000.00 Challenge ?

Thanks. I could deal with 10 - 15% loss.

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Follower ○○

Re: $1,000,000.00 Challenge ?

I'm a Yank.

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