Quote:
Originally posted by quiet
i've asked this question before, might as well ask it again as this seems like a good thread to mention it. let's say you have no debt, some investments (a couple 100K) own two homes straight out, and have around 3.5 - 4 M USD net retained after taxes sitting in a high interest bank account.
what should be done with that 3.5 M that is low risk, and low maintenance. retirement style income for someone under 40.
besides talking to a financial advisor :P your thoughts...
|
Ok quiet........ I wasn't going to say anything........... I've been wanting to say something for a while, but I wasn't going to, but you asked, so now I am.
Please keep in mind that I have no idea what site you own, if you shoot your own content, etc.
I know that your site is incredibly lucrative and that sometime later this year you plan to just walk away, close it down, and retire.
ARE YOU ON DRUGS?!?!?!?!
My biggest suggestion would be that you either:
a) sell the site to a big company for shitloads of money, or
b) work something out with an indiviual for them to take it over and you get a percentage of the profits for a period of time. (something like you get 60% the first year, 50% the second, and so on) Something with contracts and some kind of monetary oversight set up so that you don't get screwed.
You built something that took a lot of your time and effort. Yeah it's a porn site, but it's a very succesful business that you created and I think it's a shame to just shut it down like it never existed. Plus I think you're a bit foolish to turn your back on the money you could get from it. Ok, I think you are a lot foolish.
Yes you have 3.5-4 mill, but it has to last you for a whole lot of years, and through a whole lot of inflation. The rule of thumb that I have read is that on a yearly basis you should never withdraw more than 4% of the total. That should supposedly enable you to get through the ups and downs and never run out of money.
Keep 2 years of expenses in cash. Keep another 5 years in CD's or government bonds (like I bonds). Of the remaining, keep 20% in bond funds. For the rest, I would look into stuff like.... Vanguard has some tax managed funds, I would put some in the total stock market index fund........ spread it around a little.
Pick some indiviual stocks, across different sectors... companies you believe in. But never more than 5% of the whole in any one company.
Whatever you do, don't do any large lump sum investing. Pick where you want to put it, and then dollar cost average it.
Seriously though, I would read everything you can....... Motley Fool, Smart Money, Kiplingers, everything. Then shop around for a financial advisor who works for a fee, NOT a comission. And I mean really shop around, talk to as many as you can find. Listen to what they say and see how it fits with what you read and think, and find someone you can trust. You worked very hard for that money, don't piss it away, be careful.
Karen
ICQ #146194