I'm looking to turn 1 million USD into 3 Million. Any suggestions on what types of investments to avoid?

Recently inherited a decent sized sum of money and I'd like to avoid losing it all.

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Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi - with a sum this large you would be best served visiting a fee-only financial planner to develop a plan for you. Obviously you want to avoid any fraudulent, "get rich quick" scams. Apply this simple test: if it sounds too good to be true then it is likely a fraud. I would be thinking about what my lifestyle has been prior to receiving this money and what (if anything) I'd want to change. Make a list of what you'd like to do and prioritize it. $1 million seems like a lot of money but when you put a pencil to it you might see it (or at least your perception of it) shrink rapidly. I would be cautious about expanding my lifestyle - many people experiencing sudden wealth get carried away and before they know it, all that's left are the bills for their new lifestyle which they can no longer afford. There is no sure way to triple your money without a plan. One question you should ask yourself is "how fast do I want to triple my money?" Reaching high when investing always involves a risk of loss - think carefully about how much of this money you can risk losing. Many people in your situation would say "I don't want to lose ANY of it!" You have a lot to consider - meeting with a fee-only financial adviser is your best first step. Good luck! | 01.20.15 @ 23:52
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
Answered by Christopher Nesbitt, Insurance Agent in San Clemente, CA
This is a good question, and deserves a simple answer; however, can you first tell me these things?... 1.What is your time frame? (best case/worst case) 2.What is your risk tolerance? 3.Will you want to receive the payout as income (in payments) or in a lump sum? | 01.21.15 @ 00:56
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
Answered by MoneyTips Writing Staff, Financial Adviser in Los Angeles, CA
I once heard this question put a little differently, for obvious comic purposes. It went: “How do you make a million dollars in the restaurant business?” The answer was, “Start with two million.” The point I’m making is that some investments present a lot more obvious risk than others. Thus, investing in a restaurant, franchise or other business opportunity where one has no prior experience would top my list of investments to avoid.

Making money as an investor takes experience, diligence, discipline, self-awareness as to one’s goals and risk tolerances — and, most of all, time. If you truly want to turn $1 million into $3 million, it’s going to take time. I strongly recommend that you begin your quest to triple your money by seeking the advice of experienced investment professionals who have produced these kinds of results often in the past and who are not peddling short cuts.
| 01.21.15 @ 03:23
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
Answered by Gregg Himfar, Financial Adviser in Carlsbad, CA
Any investment advice given in this forum is based on the limited information provided. Why not turn it into $5 million? Just saying. | 08.17.15 @ 20:45
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
I would agree with Kim. You need to invest your assets with a fee-only adviser that acts as a fiduciary, and has your best interest in mind. A good adviser will listen to your needs, and develop an investment policy plan that clearly states what your goals are. Your investment plan should address important considerations such as taxes, inflation, projected growth of your assets, your time horizon, and your individual risk tolerance. There are many ways to manage money, but definitely stay away from anything that sounds too good to be true. You can always use the RULE of 72 to determine how long it will take to double you money.... you need to do that first before you tipple it. Take 72 and divide it by any given interest rate, and you will have the estimated time frame (in years) that it will take to make $1m into $2m. Best of luck! | 01.12.16 @ 21:29
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
That's easy. The best investments to avoid are the ones you know little to nothing about. My philosophy as a value investor is to be an inch wide and a mile deep with any investment that is using my $$. Why? Because I want my $$ to work just as hard for me as i have for them.

On $1 million, well at a market rate of return this will double to $2 million in ~14 yrs. Any Investment manager with average intelligence can get you a double in less than 10 yrs.

Questions for you:
1). Are you wanting to invest the money yourself?
2) Are you wanting someone like myself to invest it for you?
Answers;
I can help you with both. Obviously, I will invest your money through discretionary authority and you will invest your money using your own authority. Always do what is in your best interest. As a fiduciary, I always do what is in your best interest.

In Investing, just like in any relationship, 3 qualities are required;
1) Integrity
2) intelligence
3) Energy

Now we can discuss intelligence & energy until infinity. I trust we both agree that without integrity, the other two can wipe you out easily.

Send me a message to discuss. Together we can determine your number which is how long your income will exceed your expenses. No obligation


It's not what you make, it's what you keep that determines your lifestyle.
| 03.17.16 @ 23:45
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
An inheritance can be a great thing and potentially scary thing if you do not have experience with money and it will be equally important to continue on the good work of the previous owner(s) to try and leave your own legacy.

I have been an advisor for 25 years and if it were my money I would avoid illiquid investments and any get rich quick recommendations. Trying to triple your money in a shorter time frame will likely lead to losing your ______.

I would interview several advisors and then hire one who works off a plan and for a fee rather than a commissioned sales rep or someone recommending products.

I would make sure that advisor could provide you a plan that provided a defensive component. Not something generic, but very specific. If the markets do x, then your funds will be managed this way...in detail. All markets go up and down, and in my opinion, one of the best ways to multiply your investment over time is through an excellent defense so you are not giving back all of your gains when markets go south.

My website provides information on our strategy if you'd like more info or wish to set up a call.
You can also send a message through this forum. All consultations are complimentary and confidential.

| 06.14.16 @ 20:51
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:21
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA

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