livesoft wrote:It appears to me that these folks do not need any safety other than the normal avoidance of Madoff-like actors.
Just send to Vanguard and be done with it. If they want to split among financial institutions, I would recommend that they just use Vanguard ETFs or funds and Fidelity Spartan Advantage funds at those places. In my order of preference: WellsFargo, TDAmeritrade, Fidelity, Vanguard. The assets could be set up in "set-and-forget" mode except for one vendor. That one vendor would get all transactions except perhaps once every 3 or 4 years the other accounts would need some action.
Dandy wrote:What are they comfortable with now? What can they reasonably be comfortable with? If they come from a "savings" orientation then ETFs might be a little much for them - mutual funds may not be too much. Even though they may not need this money they may feel a strong emotional attachment to it as it represents their life savings/achievement - and may not like the bumps in the road that investments invariably incurr.
On the other hand they may be very comfortable with risk having been in business etc. You need to get to understand not only what they say but what they really feel and can tolerate. Not easy.
My advice if they are not very experienced in investing is to start slow and always have a decent amount in low or no risk vehicles. See how they handle a market "correction" and whether they see that as a buying opportunity. If so, they can move forward if not maybe investing a lot of their nest egg is not for them.
letsgobobby wrote:Do they need the money at all, or does their modest spending come from SS and/or pensions?
Do they have heirs? Are they investing for them?
airahcaz wrote:Where does one park the proceeds before investing? FDIC insure bank accounts only to $250K, I doubt the rich split their money by $250k each?
livesoft wrote:I could put $3MM into ETFs easily without paying commissions and with a very low bid/ask spread. In other words, ETFs are very liquid. I don't know if they can manage the trades or not, but index mutual funds with the same low expense ratios are available, so they don't have to use ETFs unless they want to. Or they could use a mix of funds and ETFs.
livesoft wrote:I'm sorry, I did not understand your comment.
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