I need to know how to invest a large sum of money safely. without loosing it so just the interest generates income and the taxes to make it function.....
is offshore banking a better move ...........
If you can help it will be appreciated, I have been a working stiff my whole life ....the only thing I ever learned about stock was how to do it in a grocery store........and a bond was something the judge asked for before he would let me go home!!!!!!
Jo And Craig said
10:27 PM Sep 18, 2012
Mike, if you will PM me I will share some info with you.
GENECOP said
11:16 PM Sep 18, 2012
Mike, this is a big question, while getting some feedback on the Net is OK ( without of coarse discussing specifics, amounts, etc....) you really need to get a referrel to a good financial planner in your neck of the woods. I am assuming you have worked your whole life to get to the place you are at, now you REALLY NEED to do your homework, get connected to the right people, and protect your principal while generating an income that balances your risk / reward ratio. If you have an accountant they can often lead you in the right direction. Be smart, these decisions will make or brake your future financial picture.....if you need any specific guidance (general) please please ask away.
Lucky Mike said
11:55 PM Sep 18, 2012
Thank you Gene.......yes Im more interested in proper steerage........I guess my attorney would be a good place to start, there is no doubt a finacial planner and several others will become part of my day to day life.....
I figure when the hospital releases me this winter Im getting back in the coach and finding me a few good hiding spots until the media frenzy settles down.......and then sneak back into my nomadic free spirited simple life I miss so much!!!!
Cindy T said
12:52 AM Sep 19, 2012
Mike,
Are you familiar with Dave Ramsey? He's a well-known financial expert who is very down-to-earth & practical. His website is http://www.daveramsey.com/home/. On his site, he has referrals to Endorsed Local Providers (ELP's) all over the country. These are financial experts who you can meet with to discuss your financial situation & how to best handle the money that you have. These folks advise & educate you so you can make a well informed decision. You might want to check his website & see if there are any ELP's in your area.
Alie and Jims Carrilite said
01:06 AM Sep 19, 2012
I've got some water front property for sale!
No other useful info though. I used to keep mutual funds, Fidielity, Janus, to name a few that did well. (used= x-wife made me part with over 1/2).
GENECOP said
01:58 AM Sep 19, 2012
Lucky Mike wrote:
Thank you Gene.......yes Im more interested in proper steerage........I guess my attorney would be a good place to start, there is no doubt a finacial planner and several others will become part of my day to day life.....
I figure when the hospital releases me this winter Im getting back in the coach and finding me a few good hiding spots until the media frenzy settles down.......and then sneak back into my nomadic free spirited simple life I miss so much!!!!
Sounds like a great plan Mike, Myrtle Beach is real nice in the winter, maybe we will see you there.....
Jake62 said
02:14 AM Sep 19, 2012
Mike,
Dave Ramsey's website is outstanding and can furnish you general direction. Don't know if you're a USAA Member, but they offer free financial advise to their members and you can sit down and talk to over the phone with these advisors. If you have more than $500,000, they offer additional services. If you're not a USAA Member, then any of the other large reputable investment firms like Fidelity, Vanguard, etc. will offer free financial planning where you can sit down for free with any of their financial advisors.
Your attorney really is not the right source for financial planning; however, your attorney can refer you to a good Estate Planning Attorney who could set-up a complete Estate plan. You should certainly execute an Estate Plan with a competent lawyer if you have assets in excess of $50,000.
Good luck!
Lucky Mike said
02:32 AM Sep 19, 2012
Jake the attorney has already completed all the estate planning....wills ,executors , trusts and legal protections for my children..........my only decision at this point is if I want to anuitize the payments or accept one lump......for tax reasons Im leaning on the payment program over 10 years...to include full life & medical for myself & family...
Jake62 said
02:50 AM Sep 19, 2012
Outstanding Mike! And, stretching your payments over a period of time will certainly help you tax wise. Good luck!
Jo And Craig said
03:09 AM Sep 19, 2012
Then again, Mike, if you annuitize and take payments over time, would your heirs still be able to receive any remaining payments? If you choose annuitized payments and your heirs are NOT entitled to receive the remainder, then you are betting your life span will be longer instead of shorter. One never knows. Something to most definitely think about.
And, Mike, listen up... if you do take a lump sum and invest with a reputable investor, it sounds like your investments could provide you with a very comfortable monthly income. If you take payments, your earnings on investments would be less and less over time since you will probably end up cutting into the principal as time goes on. So, I ask you... why leave money on someone else's table and not your own. If it were me, forget the taxes. They're a fact of life. I would much rather be in control of MY money (and the income a larger sum would generate) than to let someone else hold on to it and dole MY money out to me over time. You can't generate a lot of income if you don't have a lot of income to generate income!
I am not giving professional advice as I am not a financial expert. This just makes sense to me.
Good luck, Lucky Mike! (Did I say LUCKY?)
Racerguy said
04:49 AM Sep 19, 2012
I agree with Mary.Not an expert either but the only financial advisers that I ever heard that liked Annuities were ones selling them.
Jo And Craig said
07:40 AM Sep 19, 2012
With all due respect, nothing was ever said about a 401(k) or IRA. Never, never, EVER take a lump sum from those type of accounts!!!!! Not only would you pay taxes, but a penalty if taken out too early. (I have no clue your age!) Anyway, if this is a settlement of some kind or winnings, then you could do a lump sum and go ahead and pay the taxes, although there are some settlements whereby you do not have to pay any taxes whatsoever. Look, you will have to pay taxes on the money, anyway, so why not just pay the taxes, get them behind you, and move on with the remaining sum of YOUR money to INVEST for monthly INCOME? To my way of thinking, it's kind of like taking a bunch of money out of a paycheck for your 401(k). If you don't see it in your check, you don't miss it. The same with taking a lump sum. Focus on the NET, not the GROSS. The idea is to have enough principal that will generate a sufficient monthly income, bottom line.
Annuity? Mike, please, NEVER. What an annuity does, among other things, is put money into the pockets of the person selling it to you. Even Dave Ramsey would tell you that is THE WORSE INVESTMENT YOU COULD EVER MAKE... if you can call that an investment! Hence, another reason to contact an investor. The markets are a fine balancing act. If you had the knowledge and understanding on investments and how to invest, wouldn't you be a millionaire already? Alternatively, if you have a good investor whom you like and trust, he/she can work miracles! And, they know a lot about tax implications of various investments. Just my two cents worth!
Again, this is not professional advice.
Good luck!
-- Edited by Mary Sunshine on Wednesday 19th of September 2012 07:41:25 AM
Jake62 said
11:10 AM Sep 19, 2012
After re-reading your post Mike,
I agree with Mary & Racerguy, specifically that an annuity is usually not a good idea if you want to pass onto your heirs and inheritance. I have a pension plan that would allow us to annuitize my pension upon my retirement. However, the big issue - if I died earlier than expected, say a few years later, my heirs would not receive a penny.
On the other hand, I disagree with Mary regarding taking the lump sum if your money if coming from a 401K, IRA, etc. If you withdrawal the entire amount and take a lump sum, it would put you in a much higher tax bracket. However, leaving your money in a managed fund which you take out 3%-5% of the principal per year, which financial experts like Ramsey say should keep up with your investment strategies, would tax your money at a lower tax rate while allowing the remaining money to continue to be invested. Now, if your money is not in a tax deferred account, then you certainly don't have to worry about taxes.
Lucky Mike said
05:44 PM Sep 19, 2012
mary ....this is a structured Settlement , I worded it wrong by calling it an annuity. By taking it over a 10 year period it carries a greater tax shelter and just in simple 2% interest in the first year would gross over 250k....
I want to protect it for a future for someone else and keep it simple at this point until I can grasp an understanding of what has happen and what can be done.
My children are still young (14 & 16 ) This is their future and unfortunately Rags to riches tends to be wasted if not handled right......Im not in it for the money anymore. my life will be as it is and comfortable til my bucketlist is completed...
Unfortunately, like all others who fall into this category the stress and attention that goes with it has now fallen into my lap. the money is nice but I cant buy back the losses and life it cost to get it.
Jo And Craig said
06:07 PM Sep 19, 2012
Completely understood! I wish you all the very best!!!
Jack Mayer said
07:23 PM Sep 20, 2012
Mike, you need good professional investment and tax advice. Making the wrong move can be costly. Making the right moves can set your family up for their future years.
folivier said
02:30 PM Sep 23, 2012
Since you're dealing with such a large sum I would definately look for a financial adviser. I use an advisor through Morgan Stanley and have been very pleased with them. PM me if you would like a recommendation. A good professional will have a better understanding of the different types of investments to put together a relatively safe portfolio. And take away most of the worry. Good luck.
Northwoods Mary said
02:27 PM Apr 30, 2013
Mike, structured settlements are set up based on current interest rates, which right now are historically low - meaning you will receive far less than you would if the rates were higher. And once you've locked in your structure, it's a done deal, leaving you with far less flexibility than another type of investment. I've seen many situations where people's situations change and they end up selling their structured settlements later for HUGE discounts. When I used to practice law (don't take this as legal advice - talk to your own attorney) I always emphasized that as a lawyer, I was NOT the client's financial adviser. You need to connect with that person in addition to your lawyer. Taxes are complicated and there may be many options depending on the type of settlement. It sounds like you're dealing with enough money to justify a tax planning expert - just make sure they'd don't advise getting too creative so you run afoul of the IRS. My final advice would be pay by the hour - avoid any financial planner/broker that wants a percentage to "actively" manage your money. I'm not an expert on this - just my own advice and what I've read. (AARP has some good general financial planning articles as a place to start.). Good luck.....Lucky Mike!
Northwoods Mary said
02:34 PM Apr 30, 2013
Mike, I should have looked at the date do your post before I responded...
Northwoods Mary said
03:26 PM Apr 30, 2013
I'm not sure if this is the right place for this post, but health insurance costs have been one of our biggest concerns planning for an early retirement so we can start full timing. We thought we were in good shape because my husband''s employer of over 20 years promised we could continue our coverage through them after age 55, for the same cost as when DH was working. Then his division of this very large food company was sold to another very large food company and, just like that, goodbye cheap retiree health coverage (among other things).
I've been researching the Affordable Care Act (but it still seems to be a work in progress). As of 2014, it seems it may be a great option for us as pre-Medicare retirees. Our only real "income" will be interest from our non-IRA savings, which certainly will be less than $60,000. My understanding is that in these circumstances we can buy insurance through the "exchange" at a cost of no more than 10% of our income. Does anyone know if that is true? I also understand assets don't count against you - but if we are using assets (house sale proceeds) to live, will that count as income? Last question: will the answers vary by state in which case we should think about this when deciding a residency?
If anyone else has been researching this or knows of a good resource for information, we'd really appreciate it. We're healthy now, but if we don't choose hubbie's very expensive retiree plan when he leaves work, we can't pick it up later so we want to make the right choice.
Thanks!
Jo And Craig said
04:53 PM Apr 30, 2013
Same here, Mary! A VERY LARGE, WELL KNOWN company I work for (who purchased our company 2 years ago) worded the continuation of medical insurance VERY BROADLY when we came onboard. After months and months of trying to find out the real truth, I finally learned anyone can "retire" from this company at the age of 60 with at least 10 years of service, but my current level of insurance will cost me $840.00 PER MONTH!!! Other than our 401(k), there are no other "retirement" benefits. I just wish companies would be honest and call it something else. I now have 14 years of service with the company and am eligible to "retire" in August. Retire? How about just not come back to work one day? After all, isn't that how pretty much anyone retires nowadays? So, I have a choice... continue my current coverage which would cost $50,400 for the 5-year period (that is IF the rate stays the same), COBRA for 18 months at HALF the cost of my company's health insurance premium and then be on my own for 3.5 years until Medicare kicks in, or get my own private insurance up front when I do "retire" for probably less, but still at a significant cost. Decisions... decisions.
I know this topic has been addressed on this awesome board previously, but it might be a good idea to get everyone's updated ideas and/or suggestions. What say everyone?
Northwoods Mary said
07:43 PM Apr 30, 2013
Mary,
i found more info a this topic on am early retiree website. I then followed a link to an estimator tool for pt he cost of purchasing care from an "Obamacare" exchange, and the cost to us is less than $400 a month for better coverage than we would get from my husband's employer at 3 times the cost. (Assuming our magi is $60,000). Assets apparently don't matter, so the way I understand it, our interest income would count, but not any money we spent from our home sale.)
I wonder if we're talking about the same second largest food company in the world who sold a division to the largest food company? The former bartered the company employees as though it owned them, all the while assuring employees that the new employer would continue the benefits employees had worked many years to earn. After the deal went through, it. Was like pulling teeth to get any details, but one by one we've learned benefits have been cut or reduced....and it's still ongoing.
I guess if we continue this it belongs on different rent thread? Can this be transferred?
thanks and commiserating with you!
one Mary to another
Jo And Craig said
08:59 PM Apr 30, 2013
No, I don't work for a food company. Hint: The company that bought us does not pay taxes.
PIEERE said
04:07 PM May 23, 2013
There is one nice thing about not having money!!! Less worries and no vultures on the doorstep!!! LOL!
Today Im sure I will make alot of Friends!!!!!
I need to know how to invest a large sum of money safely. without loosing it so just the interest generates income and the taxes to make it function.....
is offshore banking a better move ...........
If you can help it will be appreciated, I have been a working stiff my whole life ....the only thing I ever learned about stock was how to do it in a grocery store........and a bond was something the judge asked for before he would let me go home!!!!!!
Thank you Gene.......yes Im more interested in proper steerage........I guess my attorney would be a good place to start, there is no doubt a finacial planner and several others will become part of my day to day life.....
I figure when the hospital releases me this winter Im getting back in the coach and finding me a few good hiding spots until the media frenzy settles down.......and then sneak back into my nomadic free spirited simple life I miss so much!!!!
Mike,
Are you familiar with Dave Ramsey? He's a well-known financial expert who is very down-to-earth & practical. His website is http://www.daveramsey.com/home/. On his site, he has referrals to Endorsed Local Providers (ELP's) all over the country. These are financial experts who you can meet with to discuss your financial situation & how to best handle the money that you have. These folks advise & educate you so you can make a well informed decision. You might want to check his website & see if there are any ELP's in your area.
I've got some water front property for sale!
No other useful info though. I used to keep mutual funds, Fidielity, Janus, to name a few that did well. (used= x-wife made me part with over 1/2).
Dave Ramsey's website is outstanding and can furnish you general direction. Don't know if you're a USAA Member, but they offer free financial advise to their members and you can sit down and talk to over the phone with these advisors. If you have more than $500,000, they offer additional services. If you're not a USAA Member, then any of the other large reputable investment firms like Fidelity, Vanguard, etc. will offer free financial planning where you can sit down for free with any of their financial advisors.
Your attorney really is not the right source for financial planning; however, your attorney can refer you to a good Estate Planning Attorney who could set-up a complete Estate plan. You should certainly execute an Estate Plan with a competent lawyer if you have assets in excess of $50,000.
Good luck!
Jake the attorney has already completed all the estate planning....wills ,executors , trusts and legal protections for my children..........my only decision at this point is if I want to anuitize the payments or accept one lump......for tax reasons Im leaning on the payment program over 10 years...to include full life & medical for myself & family...
Then again, Mike, if you annuitize and take payments over time, would your heirs still be able to receive any remaining payments? If you choose annuitized payments and your heirs are NOT entitled to receive the remainder, then you are betting your life span will be longer instead of shorter. One never knows. Something to most definitely think about.
And, Mike, listen up... if you do take a lump sum and invest with a reputable investor, it sounds like your investments could provide you with a very comfortable monthly income. If you take payments, your earnings on investments would be less and less over time since you will probably end up cutting into the principal as time goes on. So, I ask you... why leave money on someone else's table and not your own. If it were me, forget the taxes. They're a fact of life. I would much rather be in control of MY money (and the income a larger sum would generate) than to let someone else hold on to it and dole MY money out to me over time. You can't generate a lot of income if you don't have a lot of income to generate income!
I am not giving professional advice as I am not a financial expert. This just makes sense to me.
Good luck, Lucky Mike! (Did I say LUCKY?)
With all due respect, nothing was ever said about a 401(k) or IRA. Never, never, EVER take a lump sum from those type of accounts!!!!! Not only would you pay taxes, but a penalty if taken out too early. (I have no clue your age!) Anyway, if this is a settlement of some kind or winnings, then you could do a lump sum and go ahead and pay the taxes, although there are some settlements whereby you do not have to pay any taxes whatsoever. Look, you will have to pay taxes on the money, anyway, so why not just pay the taxes, get them behind you, and move on with the remaining sum of YOUR money to INVEST for monthly INCOME? To my way of thinking, it's kind of like taking a bunch of money out of a paycheck for your 401(k). If you don't see it in your check, you don't miss it. The same with taking a lump sum. Focus on the NET, not the GROSS. The idea is to have enough principal that will generate a sufficient monthly income, bottom line.
Annuity? Mike, please, NEVER. What an annuity does, among other things, is put money into the pockets of the person selling it to you. Even Dave Ramsey would tell you that is THE WORSE INVESTMENT YOU COULD EVER MAKE... if you can call that an investment! Hence, another reason to contact an investor. The markets are a fine balancing act. If you had the knowledge and understanding on investments and how to invest, wouldn't you be a millionaire already? Alternatively, if you have a good investor whom you like and trust, he/she can work miracles! And, they know a lot about tax implications of various investments. Just my two cents worth!
Again, this is not professional advice.
Good luck!
-- Edited by Mary Sunshine on Wednesday 19th of September 2012 07:41:25 AM
I agree with Mary & Racerguy, specifically that an annuity is usually not a good idea if you want to pass onto your heirs and inheritance. I have a pension plan that would allow us to annuitize my pension upon my retirement. However, the big issue - if I died earlier than expected, say a few years later, my heirs would not receive a penny.
On the other hand, I disagree with Mary regarding taking the lump sum if your money if coming from a 401K, IRA, etc. If you withdrawal the entire amount and take a lump sum, it would put you in a much higher tax bracket. However, leaving your money in a managed fund which you take out 3%-5% of the principal per year, which financial experts like Ramsey say should keep up with your investment strategies, would tax your money at a lower tax rate while allowing the remaining money to continue to be invested. Now, if your money is not in a tax deferred account, then you certainly don't have to worry about taxes.
I want to protect it for a future for someone else and keep it simple at this point until I can grasp an understanding of what has happen and what can be done.
My children are still young (14 & 16 ) This is their future and unfortunately Rags to riches tends to be wasted if not handled right......Im not in it for the money anymore. my life will be as it is and comfortable til my bucketlist is completed...
Unfortunately, like all others who fall into this category the stress and attention that goes with it has now fallen into my lap. the money is nice but I cant buy back the losses and life it cost to get it.
Completely understood! I wish you all the very best!!!
A good professional will have a better understanding of the different types of investments to put together a relatively safe portfolio. And take away most of the worry.
Good luck.
I'm not sure if this is the right place for this post, but health insurance costs have been one of our biggest concerns planning for an early retirement so we can start full timing. We thought we were in good shape because my husband''s employer of over 20 years promised we could continue our coverage through them after age 55, for the same cost as when DH was working. Then his division of this very large food company was sold to another very large food company and, just like that, goodbye cheap retiree health coverage (among other things).
I've been researching the Affordable Care Act (but it still seems to be a work in progress). As of 2014, it seems it may be a great option for us as pre-Medicare retirees. Our only real "income" will be interest from our non-IRA savings, which certainly will be less than $60,000. My understanding is that in these circumstances we can buy insurance through the "exchange" at a cost of no more than 10% of our income. Does anyone know if that is true? I also understand assets don't count against you - but if we are using assets (house sale proceeds) to live, will that count as income? Last question: will the answers vary by state in which case we should think about this when deciding a residency?
If anyone else has been researching this or knows of a good resource for information, we'd really appreciate it. We're healthy now, but if we don't choose hubbie's very expensive retiree plan when he leaves work, we can't pick it up later so we want to make the right choice.
Thanks!
Same here, Mary! A VERY LARGE, WELL KNOWN company I work for (who purchased our company 2 years ago) worded the continuation of medical insurance VERY BROADLY when we came onboard. After months and months of trying to find out the real truth, I finally learned anyone can "retire" from this company at the age of 60 with at least 10 years of service, but my current level of insurance will cost me $840.00 PER MONTH!!! Other than our 401(k), there are no other "retirement" benefits. I just wish companies would be honest and call it something else. I now have 14 years of service with the company and am eligible to "retire" in August. Retire? How about just not come back to work one day? After all, isn't that how pretty much anyone retires nowadays? So, I have a choice... continue my current coverage which would cost $50,400 for the 5-year period (that is IF the rate stays the same), COBRA for 18 months at HALF the cost of my company's health insurance premium and then be on my own for 3.5 years until Medicare kicks in, or get my own private insurance up front when I do "retire" for probably less, but still at a significant cost. Decisions... decisions.
I know this topic has been addressed on this awesome board previously, but it might be a good idea to get everyone's updated ideas and/or suggestions. What say everyone?
Mary,
i found more info a this topic on am early retiree website. I then followed a link to an estimator tool for pt he cost of purchasing care from an "Obamacare" exchange, and the cost to us is less than $400 a month for better coverage than we would get from my husband's employer at 3 times the cost. (Assuming our magi is $60,000). Assets apparently don't matter, so the way I understand it, our interest income would count, but not any money we spent from our home sale.)
I wonder if we're talking about the same second largest food company in the world who sold a division to the largest food company? The former bartered the company employees as though it owned them, all the while assuring employees that the new employer would continue the benefits employees had worked many years to earn. After the deal went through, it. Was like pulling teeth to get any details, but one by one we've learned benefits have been cut or reduced....and it's still ongoing.
I guess if we continue this it belongs on different rent thread? Can this be transferred?
thanks and commiserating with you!
one Mary to another