where to invest a couple million

Discussion in 'Hangar Talk' started by FORANE, Feb 22, 2021 at 4:19 PM.

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  1. FORANE

    FORANE En-Route

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    Assuming one were to sell some apartments they own and received a couple million. What would be good options for investing that money today? Of course this would be after buying the obligatory Bonanza...
     
    Last edited: Feb 22, 2021 at 4:43 PM
  2. Doc Holliday

    Doc Holliday Pattern Altitude

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    Ball bearings..........everything uses ball bearings............
     
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  3. JOhnH

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  4. Sluggo63

    Sluggo63 Cleared for Takeoff

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  5. asicer

    asicer Final Approach

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    Bitcoin mining equipment.
     
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  6. schmookeeg

    schmookeeg Administrator Management Council Member PoA Supporter

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    I wish I had this answer, as the owner of several high-froth-content objects and properties. I can't think of anything ELSE to put money into.

    Who were the big winners when the Weimar republic fell? :D
     
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  7. PaulS

    PaulS Touchdown! Greaser!

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    Bitcoin, part of it anyway. It really depends on what you want to do with the money.
     
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  8. wrbix

    wrbix Pattern Altitude

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    One word: plastics.
     
  9. Ted

    Ted The pilot formerly known as Twin Engine Ted

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    What's the goal with the money, and how critical is it to the rest of your financial picture? What's your risk tolerance.

    Needs more info to give a better answer. The answer could be classic Ferraris, or index funds. But probably some combination of investments.
     
  10. weilke

    weilke Touchdown! Greaser!

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  11. murphey

    murphey Touchdown! Greaser! PoA Supporter

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    Gold. Silver. High-yield bonds. More real estate. Stuff that everyone always needs, such as consumer goods & personal hygiene (e.g. Proctor & Gamble). Utilities (but not in Texas).
    No, go for the mining companies, such as RIOT. You can buy the ASICs (but there's a HUGE backlog right now for new units) and run them yourself but the power consumption is outlandish. You can pick up a used 6-GPU rig on eBay right now for $150 or so. A 12 GPU board is about the same price but you still need the rig, fan, power, etc. This is why the mining companies have large farms in places with low power costs. Not exactly a "green" product.

    https://www.thebalance.com/how-much-power-does-the-bitcoin-network-use-391280

    Stock price of a mining company fluctuates in line with Bitcoin. You're good until all the crypto is uncovered. Being a mathematician first, a computer scientist second, and a software engineer for the paycheck, I appreciate the algorithms (yes, I've studied the paper and downloaded the code) but I'm not fond of intangibles masquerading as money. On the other hand it does satisfy the definition:

    Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.

    Disclaimer: I own 0.04783611 of 1 bitcoin, bought it last October. I consider it play money. Won't buy more, won't be painful if it disappears. The "serious" money is in high-yield bonds and blue-chips. Not exciting but reliable.
     
  12. Checkout_my_Six

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    dough.....then you could say you have a lot of dough. ;)
     
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  13. EdFred

    EdFred Taxi to Parking

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    If it were me...tax free mutual funds. Yeah there's a 4% front load, but 3% tax free more or less guaranteed. 2 million gives you 60k tax free to play with a year. That will support quite a few aircraft.
     
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  14. Ted

    Ted The pilot formerly known as Twin Engine Ted

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    You have never operated a twin turboprop. I could throw one bill that was more than $60k.
     
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  15. Sac Arrow

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    Bro do you even lift
    Certainly, having a couple million to play with is a lot different game than having a couple hundred thousand to play with. This puts you in the category were you can throw out $50K on highly speculative privately held investments. Some will flop, some will get sold, hopefully at very high payouts, and some will go public - think being in on the IPO before it becomes an IPO.

    I personally do not manage my money anymore. I used to be pretty good at trading, and making decent returns, but then the dot com bust, the real estate bust... I have an independent financial consultant do the trading and investments. I won't say I completely avoided the COVID bust but I'm still ahead of the game. I'm about 30% in on privately held investments, and the rest on stocks and some mutual funds. My financial guy gives me access to investments I don't have access to on my own.

    Also, if your AGI is very high (and it might be after incurring capital gains on $2M) you might consider buying a land conservation easement. It's about a 4 for 1 write off on funds donated. If you're pushing $300k in a tax year, a $30K land conservation easement is going to net you about 50K in tax savings. Don't sharpshoot my math. That seems to be how it works out.
     
  16. wsuffa

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  17. schmookeeg

    schmookeeg Administrator Management Council Member PoA Supporter

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    Hard to argue with the crypto suggestions as I just sold all of mine last week. :D It's sure to have a solid run now.
     
  18. danhagan

    danhagan Pattern Altitude

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    It always goes back to 10k ... give it a little time;)
     
  19. Let'sgoflying!

    Let'sgoflying! Touchdown! Greaser! PoA Supporter

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    how does capital gains work on selling those apartments, if one goal is to get out of property are there techniques to minimize that?
     
  20. Sac Arrow

    Sac Arrow Touchdown! Greaser! PoA Supporter

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    See my post land conservation easements.
     
  21. Salty

    Salty Final Approach

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    Real estate. Buy some apartments or something.
     
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  22. optionizerSS

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    It depends on your situation. I would probably suggest a good financial advisor but you probably can't go wrong buying mutual funds and collecting 10-20% per year off it. That would be the conservative move and something I'd consider if I was close to retirement age. Myself, being a day trader I'd put some in long term stock holdings in solid companies like AAPL, MSFT, UPS, etc. I'm a day trader so I would manage the rest differently and I wouldn't advise going that route as it is a hard path and likely to cost you 1/2 of it until you figure it out.

    Disclaimer: I am not a financial advisor
     
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  23. Zeldman

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    You could always invest in the Help The Zeldman Enrichment Fund.....
     
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  24. EdFred

    EdFred Taxi to Parking

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    I didn't say every aircraft I said quite a few.
     
  25. MuseChaser

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    I'd invest it in either an acoustic jazz startup record company, or a reality TV show, like "American Idol," except the contestants all have to perform unaccompanied, without any recorded backing tracks, and must play violin, viola, or cello.

    Or maybe a pork and chicken sushi chain,..
     
  26. PaulS

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    Lol, pork and chicken sushi, call it "Gut Rumble".
     
  27. Tom-D

    Tom-D Taxi to Parking

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    gold. gold and more gold.
     
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  28. GRG55

    GRG55 Final Approach

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    Just one? o_O:D
     
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  29. weilke

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    A few years of marriage to a gold-digger would be another way to invest this money.
     
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  30. Ted

    Ted The pilot formerly known as Twin Engine Ted

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  31. RyanB

    RyanB Administrator Management Council Member PoA Supporter

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    The first mistake was selling the apartments ;), because we all know real estate is one of the best investments there is! :)

    That said, I’d more than likely take half of it and put it into some good ETF’s or mutual funds and forget about it until I near retirement. The other half would go back into real estate and/or start a business.
     
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  32. MountainDude

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    Really depends on the goals.
     
  33. 455 Bravo Uniform

    455 Bravo Uniform En-Route

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    Said a few times above, what are the goals? Why was the apartment sale done? New goals? Same goals?

    Roll another one, apartments or strip center from scratch, if you like to stay active with your money, with good returns. Fill ‘em up and collect checks, or sell again and do it yet again.

    Or if you want to be conservative and live off the fat, buy farm land and cash rent.

    Or if you want conservatism but something for the next generation, or you’re young enough and can wait, buy land and plant trees for a big payout 10-30 years. I’m looking into this option myself this year.

    I can’t envision someone selling apartments and then increasing their risk threshold...usually goes the other way, but maybe I hang with the wrong crowd. I don’t have a mansion or super cars. I live a 5 minute walk from corn and soybeans.
     
  34. denverpilot

    denverpilot Tied Down PoA Supporter

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    What’s the timeframe and desired ROI? Risk tolerance?
     
  35. Joe_B1

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    You could buy me a new Piper!
     
  36. FORANE

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    Lot's of responses here.
    The apartments are providing a good cash flow and I would keep them but for many reasons including the removal of a legal path to remove tenants who don't pay rent. I would buy more real estate, possibly in a location where contract law is upheld.
    The answer to the question asked earlier regarding avoiding capital gains is a starker exchange. @Let'sgoflying!
    The purpose of the money would be retirement income.
    Where can one get the 10-20% return stated by @optionizerSS without losing half of it?
    Plastics? I must be slow. @wrbix
    Low risk and any return in excess of the true inflation rate would be good. @denverpilot
     
    Last edited: Feb 23, 2021 at 5:35 AM
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  37. Flocker

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    1031 Exchange.
     
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  38. FORANE

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    Into what?
     
  39. FORANE

    FORANE En-Route

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    Mmmm, froth. Tell me more.
    Good question.
     
  40. kyleb

    kyleb Final Approach

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    What is "People with a lot of debt", for a thousan..two thous...three tho...five th...ohhell ten thousand.
     
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