Where would you park $800k?

zghorner said:
looking for some suggestions for an older friend on some places to park $800k. Must be low risk, Must be fairly simple and must provide a better return than CDs (currently averaging around 0.5% APY). Simply putting it in the SP500 is completely out of the question for him...he is in his 60's and extremely risk averse with this money.

Does anything like this even exist? even 2-3% would be acceptable to this guy.
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My goto is credit / debit spreads. Dec 2023 SPY 250/150 Put credit spread is a $5.73 credit, which is about 2.4% return on capital. Very easy to scale up the reward/risk by picking farther strikes. SPX if commissions are an issue. If you or your friend are expecting volatility to rise later, the debit spread is better.
 
zghorner said:
Does anything like this even exist? even 2-3% would be acceptable to this guy.
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Define "low risk". We don't know the risk mandate so the question can not be answered properly.

What is the Max Draw Down ("MDD") on the total Eq he is okay with? if you can answer this question it will possible to give a good answer.
 
Bonds or a fund with low equity split might be the way to go. Needs to at least match inflation. Might be worth explaining to him inflation risk
 
bln said:
Define "low risk". We don't know the risk mandate so the question can not be answered properly.

What is the Max Draw Down ("MDD") on the total Eq he is okay with? if you can answer this question it will possible to give a good answer.
More...
essentially he is looking for risk free 2%. The money has been wrapped up in CDs up to this point and wants to beat what they are offering. If that doesn't exist without some draw down risk then so be it.
 
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