sam i am at osaka airport right now and will be there in 5 hrs.
Have you got the 32 mil with you....or equivalent ?
Investing my Inheritance
- Thread starter slater
- Start date
Have you got the 32 mil with you....or equivalent ?
Obviously financial markets beg to differ from your view.
Just need to look at US bonds. At barely above 1% yields, it goes to show people still think in times of crisis, the safest bet is a US-dollar denominated bond.
Obivously I made my post when the A$ was above parity and before the Greeks tried to take the world down. Now the A$ is at 97c as the risk of a Greek crisis heightens.
The OP would've made a few million dollars already on my advice.
OP - honestly I don't know what the best advice for you is, except that financial advice is probably the biggest sham you could be dealing with. If the guy's so good, he would've went to double his own money already and wouldn't be advising you on how to do it hahaha... If you want to see these guys, feel free to listen to them, but don't act on impulse (ps I deal in the finance world but at a much more high powered level than most advisors to high net worth individuals)
As for other matters, I don't know how safe the internet is and whether someone could trace your IP and find where you post from, but you should be careful about disclosing your wealth on an internet forum.
Id buy an apartment / house for 1.5 mill...
then i would have 5 mill in a fixed deposit - earning 250-300k per year
thats you out of the way for the rest of your life!
that leaves 25 million
set up a charitable trust that allocates 1.5 million per year -to artists, homeless, refugees...whatever takes your fancy
get yourself a nice office, hire a great looking secretary, a few sycophants who help you sift through the proposals ....and do the charity set....parties, give money away etc etc
have fun, socialise with rich, famous ethical people - sounds good to me
cheers
aussie
then i would have 5 mill in a fixed deposit - earning 250-300k per year
thats you out of the way for the rest of your life!
that leaves 25 million
set up a charitable trust that allocates 1.5 million per year -to artists, homeless, refugees...whatever takes your fancy
get yourself a nice office, hire a great looking secretary, a few sycophants who help you sift through the proposals ....and do the charity set....parties, give money away etc etc
have fun, socialise with rich, famous ethical people - sounds good to me
cheers
aussie
Thanks for your input Delta.
I understand that US debt is considered rf by the market.
I am also aware of many other rf options out there with a greater return.
I questioned why an Australian investor would choose a lower return on investment for the safety of US Debt.
I am of the opinion that a significant safety premium is being paid for US debt at present. I am unsure if this will continue to be the case in the moderate to long term.
I would be interested to learn the proportion of European investment in US Bonds ?
I have an inkling that the market value of US debt is inflated by European investors.
I would avoid currency risk and invest in Australian debt.
I understand that US debt is considered rf by the market.
I am also aware of many other rf options out there with a greater return.
I questioned why an Australian investor would choose a lower return on investment for the safety of US Debt.
I am of the opinion that a significant safety premium is being paid for US debt at present. I am unsure if this will continue to be the case in the moderate to long term.
I would be interested to learn the proportion of European investment in US Bonds ?
I have an inkling that the market value of US debt is inflated by European investors.
I would avoid currency risk and invest in Australian debt.
In currency markets, the A$ is considered one of the most high-risk currencies that is easily manipulated by funds. The Australian economy is essentially a one-trick pony and that makes the A$ a currency underpinned by a one-trick pony economy that moves in cyclces (ie commodities booms and busts).
By investing in A$-denominated currency/assets, an investor is essentialy asked to take a view on a one-trick pony investment class (commodities). I don't know what's riskier. That or investing in US$. In commodities bust, the A$ will fall very quickly. And we saw that in late 2008 when the A$ fell from around 86c back down to 60c.
Also if you were concerned that the US$ would no longer be a "global currency" the alternative is to invest in the RMB which is effectively pegged against the US$ but allowed to appreciate in tidbits per annum. The Chinese Government has much stronger controls over the RMB flows than the US does over the US$.
What do you mean by other rf asset classes with higher returns? Like Australian bank term deposits? But the point is the A$ will readjust to lower levels. So it's not that rf.
By investing in A$-denominated currency/assets, an investor is essentialy asked to take a view on a one-trick pony investment class (commodities). I don't know what's riskier. That or investing in US$. In commodities bust, the A$ will fall very quickly. And we saw that in late 2008 when the A$ fell from around 86c back down to 60c.
Also if you were concerned that the US$ would no longer be a "global currency" the alternative is to invest in the RMB which is effectively pegged against the US$ but allowed to appreciate in tidbits per annum. The Chinese Government has much stronger controls over the RMB flows than the US does over the US$.
What do you mean by other rf asset classes with higher returns? Like Australian bank term deposits? But the point is the A$ will readjust to lower levels. So it's not that rf.
Cheers again Delta. Im here to learn.
I didnt consider the strength of the commodities risk.
Ta.
I didnt consider the strength of the commodities risk.
Ta.
Yes it's a little strange, the question itself is an awesome one as it makes you think about the endgame in terms of what would you do if you had X million dollars.What a shady story, I mean this is everyone's dream isn't it! Actually, Im sure someones made a movie about this somewhere. Dont believe it for a second, why would someone who inherited $32m (yes $32 million) come to an anonomous website they have never posted on to ask how to divide it up?? Im thinking you'd being flying to New York, London, Hong Kong etc and seeing the best financial advisors in the world, not a bunch of strangers you know nothing about - no offence somersofters
Max - no problems
End game point - if you were magically lumped with $32m, you'd have that issue. If you had built your way up, you'd be looking at using the same means to grow it. $32m is a lot, but not a lot relative to a lot of businesses and people are still trying to grow these businesses.
End game point - if you were magically lumped with $32m, you'd have that issue. If you had built your way up, you'd be looking at using the same means to grow it. $32m is a lot, but not a lot relative to a lot of businesses and people are still trying to grow these businesses.
I agree - it's a fantastic question (and one that I think about every month when I put the Tattslotto on
). But I think it would have been better as a hypothetical - "what would you do if you inheritred..." Anyway, doesnt really matter I guess, everyone seems to be having fun with the answers
Interesting read.
http://m.smh.com.au/business/europes-turmoil-boosts-victorian-bonds-20120525-1zabh.html
NSW ten years. AAA rated - 4.05%
US ten years. AA+ rated - 1.73%
It appears that the rating agencies consider our debt less of a risk. Consideration has to be had of the commodities risk Delta mentioned and whether or not the premium for US debt is market.
http://mobile.bloomberg.com/markets/rates-bonds/government-bonds/us/
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