# how would you invest 1 million dollars?



## fresh (Feb 6, 2012)

Though I would start this thread and see how my fellow members would go about investing their money if they had it at there disposal!


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## newfoundlander61 (Feb 6, 2011)

1. Pay off all debt.
2. Top up RRSP/TFSA for me and the wife.
3. Get professional advice regarding taxes etc.
4. Sit down with family and do what needs to be done regarding their financial situations.
5. I would keep working part time for sure.

Thats about it intially, put the rest in a high interest savings account and let it sink in a little. Change my phone number also


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## donald (Apr 18, 2011)

Id take 250k & buy a house outright(standard average i1 story home,where i live)-take 100k & have that sum in a high interest savings acct(emergency)-take the remaining 150k out of the 1st half of the 500k & use that money to either buy a building lot or use it towards securing a investment/rental property.

The second part of the 500k i would break it down into 2 parts and use 250k for a strict dividend portfolio(ie:bank,tele,pipeline,rails ect)and the second part i'd take 125k & set up a ladder gic or something to get that working and the last 125k i would use for higher risk investments like tech stocks ect.(play money spec/trade)

I'd continue working in my business but would step back more.That is how i would start off allocating that....that would be a beautiful thing!lol.


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## Sampson (Apr 3, 2009)

The same way I would invest $500,000, or $100k, or $25k.

Diversified portfolio, weighted at least 50% in the equities markets, with bonds, cash, REITs, making up the majority of the rest, with a splash or really exotic assets like hedge funds, precious metals etc.


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## Four Pillars (Apr 5, 2009)

I'd start with a Ferrari.


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## uptoolate (Oct 9, 2011)

Couch Potato!


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## Sampson (Apr 3, 2009)

Mike, the Ferrari would eat up most of that money


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## CanadianCapitalist (Mar 31, 2009)

Sampson said:


> The same way I would invest $500,000, or $100k, or $25k.
> 
> Diversified portfolio, weighted at least 50% in the equities markets, with bonds, cash, REITs, making up the majority of the rest, with a splash or really exotic assets like hedge funds, precious metals etc.


+1. I'll skip the exotic assets though. Broad emerging markets is as exotic as it will get for me.


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## larry81 (Nov 22, 2010)

30% VTI
30% VXUS
30% XBB
5% XRE
5% HISA

Hello !


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## Four Pillars (Apr 5, 2009)

Sampson said:


> Mike, the Ferrari would eat up most of that money


I'll buy a used one. Slightly rusted.


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## Argonaut (Dec 7, 2010)

Same as now.

50% Dividend Stocks
25% Precious Metals
25% Cash/Fixed Income

If yields on fixed are ever at or above 7.2% I would switch into the regular Permanent Portfolio.


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## financialnoob (Feb 26, 2011)

The Ferrari could be a good investment since it would attract lots of attractive women. Of course those come with other costs too. So not really sure how you do the math on all of that...


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## KaeJS (Sep 28, 2010)

$400k house
$100k car

$250k portfolio
$200k GIC's
$50k HISA

Work part time at a grocery store for $1k Net Income per month.

I mean, even if you achieved only a combined 4% per year, that's still about $30k/year Net.

And you don't even have anything to save for... That's $2500 a month that you have for living expenses. I can deal with that.


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## Saniokca (Sep 5, 2009)

Four Pillars said:


> I'd start with a Ferrari.


That's clearly a bad idea. A nice Aston Martin DBS is a much better investment...


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## KaeJS (Sep 28, 2010)

Saniokca said:


> That's clearly a bad idea. A nice Aston Martin DBS is a much better investment...


Hm. Yeah. I'll agree with that!


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## Plugging Along (Jan 3, 2011)

Four Pillars said:


> I'll buy a used one. Slightly rusted.


Actually a used Ferrari is more than new one, they actually usually appreciate because Ferreira generally will not sell to a new owner that doesn't have the experience to handle it. So a Ferrari would be a good investment, no or very little depreciation, plus you would have $700k still to invest.


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## Daniel A. (Mar 20, 2011)

I'd park it off shore.


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## Square Root (Jan 30, 2010)

Saniokca said:


> That's clearly a bad idea. A nice Aston Martin DBS is a much better investment...


Looks good but underpowered for the money.


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## jamesbe (May 8, 2010)

Only a select few Ferraris appreciate, 360s, 430s etc do not.

But yeah, I'd pay off the house, slowly since my rate is so low. Buy a track car most likely a z06 and then invest the rest in a GIC ladder for 40% and build the rest.

Kaejs, you think the $500k invested means no more saving required? You comfortable with that? Even without a mortgage a 400k house has usually $4k a year in taxes and maybe $5-7k a year in utilities ... Life adds up


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## Montrealer (Sep 13, 2010)

The long term upkeep for a Ferrari costs too much and you better make sure your $1,000,000.00 is making a decent return if you want to maintain that standard of life.

With $1,000,000.00 I would:

1) Pay off my mortgage in full
2) Pay off my student loan in full
3) Pay off my car in full
4) Buy two income generating properties with 25% down
5) Invest the remaining balance in a mutual fund with at least a 5% return 

The bottom line is that $1,000,000.00 should allow you to pay off any and all debt, invest in properties that generate income and appreciate over time and have a good amount in investments in liquid savings. 

If someone acquires or makes $1,000,000.00 and invests in an exotic car, they should think twice because at the end of the day, the exotic car will cost you much more than the original price you paid for it.

Trust me, I know someone with a Ferrari and someone with a Lamborghini.


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## the-royal-mail (Dec 11, 2009)

I would simply stop working and live on the principal for the rest of my life. Buy a modest house and new car and that will be enough for me. $1M suits me fine. I would probably post a thread like this one on CMF to get advice on how to make the remainder grow a bit so it's sustainable for the rest of my life.

FYI a large percentage of lottery winners go broke. Better be careful with the cars and extra properties. Don't listen to hype.


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## jamesbe (May 8, 2010)

^ Yup, I'd pay off what I have (only debt is my mortgage) and just live well after that.

I'd quit my day job but keep my part-time gig.


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## Four Pillars (Apr 5, 2009)

I don't have any debts, so I'd probably invest in a new garage for the Ferrari since my current one is a bit of a wreck.


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## marina628 (Dec 14, 2010)

I would buy a beach house in Caribbean and whoever makes the best margaritas can stay on for free Any takers ?


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## Plugging Along (Jan 3, 2011)

jamesbe said:


> Only a select few Ferraris appreciate, 360s, 430s etc do not.
> 
> QUOTE]
> 
> ...


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## Four Pillars (Apr 5, 2009)

Plugging Along said:


> jamesbe said:
> 
> 
> > Only a select few Ferraris appreciate, 360s, 430s etc do not.
> ...


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## Plugging Along (Jan 3, 2011)

5Back to the OP's questions, I would split up my investment in the following:

1. Pay off my recreation property
2. Either pay off my investment property or buy another one.
3. Max out the RRSP, RESPs, and TSFA
4. Top off my kids In trust accounts so their education and a few other things are set. 
5. That would leave probably $500 or $600K, so I would have my financial advisor invest half. Yep, I know, not the standard response here. It's worked for me so far as I tend too gamble too much with my investments, left to my own accord.
6. The half, I would invest in some small start ups that I have access to, about $100K, the rest in equities. 

I would continue working, but I would go into my own consulting and work 70%. 

A million dollars for me, wouldn't change much in my lifestyle. It would just get to my financial and life goals a little faster. Honestly, until I know my kids are well on their way in life (so at least finished university), I would continue working, unless I had more then $5 Mil in investable assets.


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## humble_pie (Jun 7, 2009)

i'd use it as seed money to set up a program where inner city kids could all go to the country for simple, inexpensive holidays in winter or summer.

france does this so well. All over the country, huge armies of kids of all ages take off for their "vacances de neiges" in the winter or go "en colonie" in the summertime. The state offers support when a family needs financial help, but the middle-class kids & the offspring from wealthy families all go off en colonie together. There's hardly a french kid from any background who doesn't get to go en colonie at some point in his or her life.

in france, i finally knew that we had arrived at slightly more than a snowball's chance in hell of being accepted by the xenophobic french when the directeur of my son's école primaire asked if he, age 10, would like to go en colonie.

here in canada, there's a network of farmers who host kids from the chernobyl region of russia every summer. The idea is that the russian kids will get away from a toxic stressor environment for at least a month while they vacation in rural canada. I don't know if the farmers are reimbursed for anything, or who pays for the kids' airfare & medical insurance. The impression i had, from a farm family who have been doing this for many years, is that the farmers are volunteering a lot of the costs themselves. Pretty amazing.


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## blin10 (Jun 27, 2011)

put all in 5-7% divi stocks


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## Jon_Snow (May 20, 2009)

If I could convince my wife to part with some of our real estate, I would love to put some of the great ideas of this thread into practice. 58% of our net worth is in real estate, which, IMO, is too much $ tied up in something that brings us ZERO income. Our island property (4 side by side 2 acres lots) is very special to us, and we will retire there eventually, but increasingly I don't think we need 8 acres.... would love to sell 2 of them, put the proceeds into dividend paying equities and we would have the much desired "million dollar portfolio". This is my dream scenario... not necessarily my better half's. 

A likely real estate correction is also making me antsy to liquidate some land. Its already started in the Victoria area... might be too late.


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## CanadianCapitalist (Mar 31, 2009)

humble_pie said:


> i'd use it as seed money to set up a program where inner city kids could all go to the country for simple, inexpensive holidays in winter or summer.


Wow. This is a very good idea, esp. kids from every strata of society mixing together.


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## Sasquatch (Jan 28, 2012)

Very simple...... W W & S ...... wine, women and song....... would work for me


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## Causalien (Apr 4, 2009)

Lock it in at 5% and live off of it?


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## v_tofu (Apr 16, 2009)

50 acres of farm land
guns guns and more guns
same for ammo
gold and silver
giant 3000 sq ft home with 1000 sq ft bunker



And then wait...


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## KaeJS (Sep 28, 2010)

v_tofu said:


> And then wait...


For inflation to kick your *** as you die of old age in your bunker, with the most action being the few birds you shot every couple days?


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## Argonaut (Dec 7, 2010)

$250,000 in gold and silver would be nice to setup Scrooge McDuck style and jump in it.


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## peterk (May 16, 2010)

100% stocks for me. Rent an apartment in a new city around the country/globe every year or two and live well off the 3k/month that it generates me for many years. Perhaps buy a house when I'm 60-70 to settle down in.


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## uptoolate (Oct 9, 2011)

'And then wait'



KaeJS said:


> For inflation to kick your *** as you die of old age in your bunker, with the most action being the few birds you shot every couple days?


+1


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## v_tofu (Apr 16, 2009)

KaeJS said:


> For inflation to kick your *** as you die of old age in your bunker, with the most action being the few birds you shot every couple days?


How will inflation kick my *** when my only *** ets are guns, ammo, and precious metals? 

I'll probably die from eating all those MRE's though


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## ddkay (Nov 20, 2010)

Watching this new series its great http://channel.nationalgeographic.com/channel/doomsday-preppers/


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## humble_pie (Jun 7, 2009)

the squads of goons roaming the countryside in the post nuclear winter will be able to break in to steal the well-known hoard of gold & silver.

it'll be well-known because they will have told in the village how the whole place including the bunker was constructed & where its weak points of entry are. The guys that built it will have told.

they'll probably finish him off with one of his own guns.


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## dcaron (Jul 23, 2009)

Pay off 270K mortgage and 3k debt
Replace our 10-year old and 8 year old car, with slightly used ones (2-4 years)
Set up Emergency Fund for 2 years survival. 
Max out RRSP for wife and I.
Set up dividend generating non-registered investment.
Finish off landscaping in front of house
Finish my basement.
Enhance skill set by training or education for wife and I.
Leave for 2 week vacation.

Wife and I would still continue working ...


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## Andre112 (Apr 27, 2011)

If world comes to an end by the end of this year, do you still have the same answer?


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## RoR (Jan 18, 2012)

v_tofu said:


> 50 acres of farm land
> guns guns and more guns
> same for ammo
> giant 3000 sq ft home with 1000 sq ft bunker:


canadiangunnutz perhaps? lol


1 Million
Buy a bigger house, paid in full. 
Pay off car debt
Max our RRSP's
Max out TFSA's
1 week vaca for 4
Then with a fun 20K, guns, tattoos and plastic surgery.

Then go back to work.


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## Mockingbird (Apr 29, 2009)

1 million in new money? I would set up a charitable foundation.

MB


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## Dmoney (Apr 28, 2011)

Mockingbird said:


> 1 million in new money? I would set up a charitable foundation.
> 
> MB


Well now you're just making us all look bad... 

I'd buy a Ferarri to drive underpriviledged kids around in 

Then with the remainder buy a duplex or triplex mortgage free to rent out, with a driveway for the Ferarri.


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## hboy43 (May 10, 2009)

Hi:

I've spent my life thus far investing in financial assets. If a cool $1M came along, I'd invest in adventure: I'd sink half into a new 45 foot sailing vessel and the other half would keep me going until I couldn't physically do it any more.

In the mean time, I am still working on plan B, a USED 40-45 footer.

hboy43


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## RedRose (Aug 2, 2011)

The boat hobby would swallow up lots of those dollars.
Just like the other boy toys.

I like the idea of the variety of Margaritas and all 5-star living.


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## Sherlock (Apr 18, 2010)

I'd put it all in a dividend portfolio then forget about it for 15 years. By then it should have grown to 2 million assuming 5% average yearly growth, or 3 million assuming 8% average yearly growth. Then I'd retire and spend the rest of my life traveling to exotic places.


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## Kalergie (Jan 7, 2011)

I think I'd do excatly what I am doing right now except worry less about the future. In terms of investments, I'd probably follow the same approach as today but with more share on the fixed income side. (30% equity rather /70% fixed income than 70/30). 

I'd try to work in exotic places and live a few years here and there. (Hong Kong, Singapore, Sydney, London, Sao Paulo, Tokyo) I wouldnt buy a home nor would I buy a fancy car; I'd rent what I love and leave the ownership to locals. You get the point.


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## RedRose (Aug 2, 2011)

It certainly depends on the age of the person.

I have over this figure in assests right now.
I will need to set a clear and secure portfolio to get it to work for me.

Interesting to see the diversity of your choices.

Cars and Boat mania are not my choices. Glad for those that are excited by them.
The exotic places sound inviting but would have to be all 5-star, I am not too keen on long flights either.


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## BigGuy (Feb 11, 2012)

Being all of 22, I would do the following:

Pay of remainder of school loan for me/fiancee ($17k)
Pay off my parents mortgage (40K)
Pay off my brother's student loans ($??k)
Max out our TFSA's/RRSP
Invest the rest in dividends, moving into TFSA/RRSP over time
Wait until I'm around 40-45 then see what I want to do.


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## Ethan (Aug 8, 2010)

1. Pay off mortgage ($210k)
2. Sign with a builder to buy a new, larger house (likely an additional $200k from the sale price of my current house, this would get me a $500k house net of fees)
3. Invest in RRSP's the difference between my earnings and the cutoff for the 35% tax bracket (~43k in SK)
4. Invest $100k in a real estate JV, $100k in a junior oil company and $100k in a farmland investment trust that are only available to accredited investors.
5. I have about $250k left, that would be put in high interest savings to deploy on any future buying opportunities I identify. I imagine my girlfriend of 3 years would be increasing the pressure on me to propose so I'd need a cash reserve for a ring and a wedding.

I'd continue working because $1 million is not enough for a 27 year old to retire on these days. The NPV of my future earnings are significantly greater than $1 million and I'd need to do something with my time.


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