Sale of my business about to go through -- Where do I park the money?

[Grog]

I know its a ton of money (probably about $50K/year in fees, at least) but it seems to be in line with what other investment guys charge. Does that sound right to you?

I have a lot to learn about the market and so I am ok relying on someone at this stage, I could not do it myself. He also said some stuff about being able to buy funds at their lowest prices because of the power of UBS. IDK. I do know that those $500 flat fees could have cost me about $10/each on Etrade...

The biggest decision I have to make is whether to take advantage of the credit line to pay the 2M I owe in taxes come April.

 

[CHOPTALK]

The biggest decision I have to make is whether to take advantage of the credit line to pay the 2M I owe in taxes come April.

If I were you I would not do that right now.
But I would not take advice on something like this from a stranger on a gambling board.

Just realize the guy that told you to do this gets paid to sell equities and most of the time they don't have your well being as their #1 priority.

In a worst case situation you could be in a real bind using credit for investments if the market crashes at the wrong time.

In a perfect world it would be great.
But we don't live in a perfect world.

You have plenty enough equity to have a nice retirement just investing what you have.

 

[Acebb]

My investment guy wants to put 1 M in equities and so far has purchased $50,000 worth of the following:

United Technologies UTX
Boeing (BA)
Novartis (NVS)
Siemens (Siegy)
Unilever (UL)
Marriot (MAR)
Disney (DIS)

I would not do this.

Just curious, what is the reasoning behind these stocks, did he tell you? What is the expected outcome of you investing in these stocks? Why not mutual funds instead?

Grog,

what I'm not seeing here is an identified strategy and associated goals. For example, is it your strategy to say "invest so the sale of my company enables me to live a flexible lifestyle"? What are your goals? What are you doing about healthcare and retirement?

What about using municipal bonds for income?

I think you should take a step back and identify what your strategy and goals are before looking at specific investments, that way you can invest in things to meet your goals.

For example;

- I want to minimize my tax liability
- I need $XXX income to live the lifestyle I want
- I plan to invest in ___ to preserve and grow my capital.

I'm not seeing any of that (I'm not trying to be overly critical) and that would concern me if that were my money.

 

[PatsFan1283]

I know its a ton of money (probably about $50K/year in fees, at least) but it seems to be in line with what other investment guys charge. Does that sound right to you?

I have a lot to learn about the market and so I am ok relying on someone at this stage, I could not do it myself. He also said some stuff about being able to buy funds at their lowest prices because of the power of UBS. IDK. I do know that those $500 flat fees could have cost me about $10/each on Etrade...

The biggest decision I have to make is whether to take advantage of the credit line to pay the 2M I owe in taxes come April.

FWIW 75 basis points is .75% not .075

also what happened to the stocks/bonds mutual fund/etf asset allocation mix he had drawn up for you?

 

[Grog]

FWIW 75 basis points is .75% not .075

also what happened to the stocks/bonds mutual fund/etf asset allocation mix he had drawn up for you?

Thanks for the correction on the basis points.

The allocation of mutual funds is all the investment money outside of the 1M he's putting into straight (blue chip) stocks.

 

[Time2shine]

Do the research my friend.....BIOYF....another gift! Enjoy.

 

[TheFalls]

Did I just read that you were charged $500 for something that could have cost you around $60?
The fees will eat you-but if you have no clue about markets- you pay up.
I would add that I'm with Chop and others-pay off all debts.


What was company and line of business you sold?

 

[halekulani]

i'm w chop
i mean, u could have put 50k on microsoft and been fine for the next 10 years
why the fuck would i pay someone 500 dollars to buy 50k worth of disney or boeing

 

[mickj]

Did I just read that you were charged $500 for something that could have cost you around $60?

Actually $500 per so times 7 stocks that would be $3,500. Scottrade is $7 per so that would be $49 total.

 

[Time2shine]

Park some money into XXII soon and check it in about 2 years!!! You won't be dis-appointed in my opinion!! Enjoy