A friend of mine recently inherited and sold a modest property in Point Piper. We can't find a bank account with a decent interest rate for the whole amount, so time is critical.
My friend is in their 20s, single and not looking to start a family any time soon.
Any advice is appreciated.
Best advice is to not ask anyone on ozbargain on how to invest 5M and go and see a financial planner.
Most-epic-ozbargain-meetup-ever… In the Bahamas…
Turn it into cash and remove it from the banking system. Trust me on this!
Why?
You know don't about the Zombie Apocalypse that's coming?
What makes you think cash will be accepted after an apocalyptic event?
@Scrooge McDuck: Well, you're going to need things to burn to keep the fire going…Admittedly this would work better if our notes were still paper.
Well, you're going to need things to burn to keep the fire going…
I think it'd be more prudent to convert wealth to something with bartering value.
Kindling will be abundant…
Admittedly this would work better if our notes were still paper.
With that lack of foresight, you wouldn't survive a Zombie Apocalypse.
@Scrooge McDuck: What might you suggest? Grabs a pen and pad
Hey now. I wouldn't be the one with 5 million in cash…
$5,000,000 could build a pretty comfortable bunker…
Not in Sydney!
But you didn't speak up about that here.
You're right, I didn't. I need to go reassess my priorities in the event of an apocalypse.
Not in Sydney!
It would be imprudent to inhabit a population centre let alone a capital city. Better to build in the middle of nowhere.
I need to go reassess my priorities in the event of an apocalypse.
You got that right!
Not sure if sarcastic or not.
5 million in cold hard cash is a risk.
As if! Anyone who really had $5m and sought investment advice here would be a complete idiot.
Not really. You won't find a more greedy, cunning, money-obsessed community anywhere :)
I find advice from Ozbargainers often to be very good and balanced.
put it in vanguards i guess. the one that tracks the us market. or the snp500
or the snp500
What does SNP stand for?
Don't put all your eggs in one basket (like in a particular property or particular shares).
Contact a professional management firm like MLC, and have them invest your money based simply on level of risk you are prepared to take (low, moderate, high).
They will give you investment advise in relation to where you should invest (bonds, local shares, international markets, property trusts etc).
Diversifying your investment portfolio in this fashion greatly minimises your risk and 'evens out' the peaks and troughs.
Forget all the advice about putting it all into a particular property or share market. Spread it out and if required draw out a regular payment if you like to supplement your current income. $5 million is a substantial amount of money, and in my opinion no point in locking it all up for later.
There's more to life than acquiring wealth. Let professionals look after what you have, and live a little too :).
What a waste someone with that much money to play with and doesnt even know what to do with it. How does someone so clueless come across that in the first place unless they got lucky.
Edit: Inheritance ah that explains it
someone so clueless
You mean like someone who replies to a thread before reading the 1st sentence of a 4 sentence OP?
Tesla/spaceX Shares you watch and see what they will be worth in 20 years
Bullcrap! Spend the money and be poor/middle class like the rest of us who take advice from dummies :P
you give it to me
He could retire with that 5M .. No need to invest, Investing is if you plan to have kids and give them wealth aswell …
LOL right….looking for $5M investment advice on Ozbargain…
Start a medicinal marijuana company and float it on the ASX…
spend it on hookers if hes in mid 20s, and single
It's a she … still, hookers if she wants them!
1 Step - Find a good financial advisor.
2 Step - Find a good financial advisor.
3 Step - Go on holiday and enjoy some of the money.
Modest?!?
Advice
Take a very small proportion of that $5,000,000 and see a professional investment advisor.
Pay my debts and I'll tell you after that.
Inherit 5 MILLIONS… damnn
I should've taken those nigerian prince emails seriously now!!
I think your friend needs to consult a good accountant in order to protect his principal amount from future lawsuits from spouses etc. Given that he is so young and hasn't kept his wealth a secret (atleast not from you etc) I would assume he is likely to tell his next girlfriend/defacto partner the same information. This can spell disaster for him.
Also to give an example of how important good advice is, had his parents considered getting advice for their estate planning they could have placed their assets into a testamentary trust which may have been more beneficial for your friend considering his age.
I hope you seriously consider getting good accounting advice from a qualified accountant and please for your friends sake go to a reputable firm that has the size and scale to advise him properly.
The fees you pay today may save him half his assets in the future upon marital dispute.
If you speak to JV, he'll probably say "Does your $5,000,000 comes in $5 notes?"