rcole33856 wrote:I am recieving approximately 2 mill in realestate about 7 different properties from florida to hawaii all paid off. Also after taxes approximate 15mill in cash. I am 45 currently in med field making a good living but after this I think I want to retire and live off these investments. I believe in passive investing and I just want to preserve what I have nothing fancy. I would like to take about 5% in distributions each year and live off that. Yes I need a financial adviser, cpa ect but what would be the best way to tackle this and be able to have the money last 40 yrs or so. Thanks for everyones advice
- put most of it in *very safe* government securities and sit and wait
- talk to lots of people, read lots
Generally that kind of money comes out of investment in commercial RE (use funds, and don't use private LPs-- investors are often ripped off). About a 5% yield is possible.
I would diversify as much as you can. Global small cap, commercial RE, TIPS, global inflation linked bonds, etc. etc.
Do read William Bernstein on people who broke to High Net Worths. There are a lot of vultures out there.
You are very unlikely to need things like Hedge Funds, Private Equity or private real estate LPs.
Read the Michael Lewis article (it's still online somewhere) in Portfolio magazine about the DFA Adviser who serves Hollywood. It's very eye opening. You might want to meet that guy and discuss your needs.
That's the sort of financial adviser you might want to have.
Larry Swedroe who posts here would be another.
Get out of your profession but I would get involved with a charity or driving purpose in your life. Otherwise you could old really quick-- the idle rich are none too happy in my experience.