Quote:
Originally Posted by MisterEx
I have several million dollars to invest (sale of a business)
Quote:
Originally Posted by isukatpkr
I'd look into a professional for this. Managing several million dollars is a full time job.
Quote:
Originally Posted by mugatu668
If i were in your position I would take 10% and go physical gold
I second each of the two other quotes, with that much money going a professional services route like Dave says is likely the best route to go...but then again, several million from ANY of the big names (T Rowe, Fidelty, American Funds etc) will qualify you for lower fees, no loads and personal service, so its up to personal preference.
I'd think of something like:
30% Vanguard Total Bond Market
30% Vanguard High Yield Corporate
15% Vanguard Total Stock Market
10% Vanguard FTSE All World ex-US
10% Vanguard Inflation Protected Securities
5% Vanguard Utilities Index
Giving you around 4.3% yield, which on $3m equates to around $100k/year after 20% tax.
I stick utilities in there because they are pretty darn consistent in throwing off dividends, so any fall in the others is likely to not occur with the utilities.
To decrease risk (and lower income) in this case would be to actually lower the high yield corporate exposure and increase total bond and/or inflation protected. You don't want to ignore stock funds entirely, but allocation to them isn't as important since they are not really income producing unless you pick individual stocks. Plus you are looking for income and capital preservation first, growth secondary, if not tiertiary.