Quote from showyouwang:
I would recommend staying away, it will eat at you unless you commit 100%... I am talking 100% committed or don't do it at all.
I agree!
Btw, to another poster, I am an INDEPENDENT Investment Advisor, and CFP. I do agree, RUN from traditional wirehouses, traditional brokers, etc.,
I'm not a traditional broker by any means. My job is putting together a step-by-step plan of action for Clients that when implemented helps them achieve their goals, for the reasons that are important to THEM.
To the OP, I don't believe you're ready to make financial decisions with ALL of your $$$. Too much emotion involved, and I can sense you are somewhat emotional form what you've typed. Don't worry, you're not alone in this. I have 3rd party managers handling some of my retirement assets. I manage about 15-20% of my own. Yes, that's right. An Investment Advisor who hires other Managers to manage some of his retirement $$$$. That's the discipline.
You and your Wife are Accredited. That opens many doors for you that are closed to so many.
I would have to ask what your tolerances for risk are, and create an Investment Personality Profile before telling you any certain plan is for you.
However, here's an example Portfolio I created two weeks ago for a Couple who have a tolerance number of 3 (1 = cash, and gold under the bed, lol! 6 = 100% equities, Opportunistic HF's, etc.,)
Ages:
Him 52, Her 41
LNW $5,120,000
Goals:
1. Retirement for Him (she doesn't work) July 17, 2015 Wants $15,000/month
2. College Education for three children starting with the 1st child in August 2012
3. Donating to three charities ongoing
4. Purchase of third vacation home needing $800,000-950,000 now- end of year.
Without getting into Charitable Remainder Trusts, a Trust, and the advice needed to get them there, I'll list the Portfolio Model to be brief:
15% 3rd Party Money Managers- All caps, bonds, ETF's, etc., (Tactical) Why 15%? NEVER invest all your $$$$ with one money manager. "Made-off" is an extreme example, but relevant. The main reason is what heppens to you if the managers blow up, and lose 50%+??? The 15% number fits these particular Clients, and is only an example.
15% 3rd Party Money Managers- (Quantitative)
15% 3rd Party Money Managers- (Traditional Asset Allocation)
5% Private Real Estate Partnership yielding 8%, and is ALL CASH.
3% Oil and Nat Gas drilling Partnership ("Piggybacking" with the big boys like Chesapeake, BP, St. Mary's, etc., seeking a total return)
2% Oil and Nat Gas Partnership yielding 16.5%, monthly income, with principal back at year four. (66% return)
4% Equipment Leasing Partnership program which is a pseudo-hedge against rising rates/inflation. Yields 9.5%, monthly income, and liquidation phase at end of program which seeks an additional 10-30%, depending on inflation. (Major companies don't replace equipment when rates and inflation are soaring. They keep what they have, and the Fund does well with that scenario!)
2% Fx HF
7% among two-three HF's that meet "the profile" for what you need from them.
5% Managed Futures
5% Precious Metals
2% State-Sponsored 529 Plan. (No Fed, BUT also No state income taxes if you choose a state-sponsored plan. Check w/ your state first to make sure.)
15% Cash, CD's, etc.,
Again, this is just an example. I hope this helps you in modeling a portfolio. You can always trade with 10k, etc., but I would focus on the bigger picture right now, and that's your future. What do you want the 1.8M to do for you and your Wife? Ask yourself, "what's important...about money...to me?"
Best of luck to you!
