Where would you park $800k?

xandman said:
Just for clarification. The guy said he wanted to "park". So, he wants a near cash alternative.

There is no way anyone will make a positive real yield risk free. No way. This gives him a fighting chance to come out with an absolute/nominal positive yield much higher than standard treasuries.

In cash, he will loose by the inflation print. In VTIP, his REAL loss is locked into about 2.5% currently.
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Yup what he is looking for existed, maybe, 20 years ago. Maybe. Even then like you say inflation always takes "it's cut" first.

In order to beat inflation the return has to be greater by "X".
 
DaveV said:
Have you done any basic research before recommending these securities, or are you just guessing that based on the ETF name, they will do for the OP? For example, QRMI (Global X NASDAQ 100 Risk Managed Income ETF) is already down 2.4% YTD and only has a 1.3% dividend yield; for comparison, SPY is up 5.1% YTD.
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yea i've looked into it. It's similar to QYLD giving out 11% annual premium yield with just CC, but since it's a collar, it will be around 8-9%. More along the lines of NUSI which is currently at 7-8%. I figure he put in that QRMI, reinvest half of the premiums earned with buying more shares every month. So long term, his equity is basically flat, and the account grows by bigger share of QRMI and basically bigger premiums.

Plus OP old friend is not looking to beat the damn index. He's looking to earn consistent income that beats CDs without the excessive downside risk.
 
Open an account at Gemini.com which is a crypto exchange, regulated in the US. If it sounds scary, do some research and you should be able to reassure your friend.
Follow all security advices on their website.

Don't do any kind of trading.
Transfer part or all of your 800K into this new account.
Buy the Gemini dollar Wich is a stablecoin ( the value never change and is 1 to 1 ) and click on "Gemini earn". You don't need a "cold wallet" or anything fancy.
You will now have a 8% per year of interest.
If you leave US dollars in this account, they are FDIC insured. The GUSD or Gemini dollar is also FDIC insured for 250K.

No fees to buy or sell the Gemini dollar. (Expensive fees for active trading of anything else).

I don't know anything as good and more secure than that.
 
Variable annuities with Premium Rated insurance. No downside risk and unlimited upside with a guaranteed return.
 
Fonz said:
Open an account at Gemini.com which is a crypto exchange, regulated in the US. If it sounds scary, do some research and you should be able to reassure your friend.
Follow all security advices on their website.

Don't do any kind of trading.
Transfer part or all of your 800K into this new account.
Buy the Gemini dollar Wich is a stablecoin ( the value never change and is 1 to 1 ) and click on "Gemini earn". You don't need a "cold wallet" or anything fancy.
You will now have a 8% per year of interest.
If you leave US dollars in this account, they are FDIC insured. The GUSD or Gemini dollar is also FDIC insured for 250K.

No fees to buy or sell the Gemini dollar. (Expensive fees for active trading of anything else).

I don't know anything as good and more secure than that.
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@fpmz THANKS !
 
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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Buy a home in a nice nearby neighborhood or nearby rural area...rent it out on AirnB or Vrbo.

Sell whenever he reaches his profit target after the appraisal appreciates.

wrbtrader
 
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