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Bloviating Zeppelin: One Million Dollars

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Sunday, September 20, 2009

One Million Dollars

Let's say something amazing happened.

Let's say that a person you once befriended and assisted, in a way you thought insignificant and about which you had completely forgotten, wired one million dollars into your personal account.

You can't put it under your mattress. You can't take it out in cash.

What would you do?

How would you invest that money?

What would you do with that money in order to ensure you reaped the greatest possible yield and paid the least amount of taxes possible, legally?



Anonymous Ranando said...

$1,000,000.00 in stocks would make you or break you, you never know what's the stock market going to do.

$1,000,000.00 in bonds would return you a yearly income of around $40,000.00 give or take $10,000.00 and not much risk, hardly any.

Also, start a family trust.

I say bonds and utilities and never, let me repeat never touch the principle, the $1,000,000.00.

It would be tough to completely retire on a million bucks these days, IMO.

Different people have different ideas, I'm not a big risk taker when it comes to my money, business YES, cold hard cash NO.

Sun Sep 20, 05:25:00 PM PDT  
Blogger dons_mind said...

lacking any kind of financial sense whatsoever, i'd have to consult a professional - although Ranando's point about not touching the principal is a definite......

Sun Sep 20, 05:37:00 PM PDT  
Blogger Tom said...

I can think of several worthy charities. (NOT ACORN!!!)

Sun Sep 20, 05:54:00 PM PDT  
Blogger Bloviating Zeppelin said...

Ranando: thanks for the erudition!

Don: Professional -- yes.

Tom: charities? A nice thought but they won't help you in your advancing years. You have to KEEP and perhaps enhance your money in order to help OTHERS. If YOU aren't strong your charities can't benefit.


Sun Sep 20, 06:29:00 PM PDT  
Blogger TexasFred said...

We have moved nearly everything we have into bonds for the time being, my financial manager calls it "Obama proofing" our profiles...

And Ranando is 100% on the money with exactly what our people are telling us... And since we're talking money, we recently moved our money to a Raymond James broker, so far it's the best thing we've ever done, he's recouped nearly all of our recent losses, and is making our money as safe as is possible in these highly volatile times...

Since you threw it out here, is this hypothetical or have you been graced with a nice windfall??

Sun Sep 20, 07:21:00 PM PDT  
Blogger Greywolfe said...

Since we're dreaming here, I'd Buy up a bunch of gold coins and bury their shiny bottoms in some part of my family's land and wait for the self Obamastruction (read also as suicide or self destruction) of our financial and social fabric to bottom out.

Then cash it in for whatever currency the U.N. would then be using for its reserve currency and retire to some island where the only real decision a person has to make is whether he wants sunscrean or just stay in the hamock under the coconut trees that day.

Sun Sep 20, 08:38:00 PM PDT  
Blogger TexasFred said...

Greywolf, some of us were trying to have a REAL discussion, there were NO dreams involved, at least not on my part...

Gold coins and the UN? That's not a dream, it's a fucking nightmare...

Sun Sep 20, 09:23:00 PM PDT  
Blogger Arkady said...

In the America we live in today, investing is scary - who knows which industry will be compromised next. The best use is to use the million dollars to support conservative/libertarian organizations and to spread awareness.

Btw, amazing blog you got here. Would love a blog roll swap.


Sun Sep 20, 09:30:00 PM PDT  
Blogger Greywolfe said...

Well Texasfred, as no one has actually offered me a million bucks that I'm aware of, it's dreaming to me, even if the conversation IS real.

As for the gold and the U.N. that's the world we currently live in. Barry and his ilk are pushing his socialist poison down our throats and the the U.N. is calling for a "global currency" to replace the dollar as the international reserve currency. A nightmare it may well be, but it's one that we are sharing.

And frankly, without some form of extreme remedy, I see no way to stop what's coming. Everything that we've tried (tea parties, town halls, 9/12 march) has been ignored by the Marxist in Chief and the wicked witch of the left coast.

My favorite idea for a remedy is for a couple of states to declare secession....that would be one hell of a wake up call.

Sun Sep 20, 10:35:00 PM PDT  
Blogger Greywolfe said...

But make no mistake, if I came into a million bucks tomorrow, that's exactly what I'd do. Buy gold and plant the stuff against a rainy day.

Then move to the state that secedes first.

Sun Sep 20, 10:37:00 PM PDT  
Blogger A Jacksonian said...

A million dollars does me little good at all. The investment climate is such that with the federal government deciding to abrogate contracts in real estate, banking, finance, automobiles and elsewhere, that those venues are now at peril of further government take-over and intervention. That goes for secured trusts and IRAs and their legal brethren: the 'trust busters' of the early part of the 20th century ensured that such things fell into the federal jurisdiction at the large scale, and as the small scale monies in them now dwarf those types of industrial trusts, they become a ripe target for government 'revenue'.

My few investments, such as they are, are in sector funds, not company funds: energy, health care, broad market stocks, and a couple of small market stocks that utilize game based forecasting of markets by other larger groups (DOW and S&P). That and some truly small investments in overseas emerging market funds, bioresearch and even an REIT fund, all at bare minumum investments.

No matter what our government does, the need for energy and health care are demographic driven on a global basis and those sector funds invest globally and are willing to shift to better companies as needed to address those sectors. Both of those sectors are very near points of major and radical alteration due to technology, and those changes will alter how we approach our lives and how we perceive energy, as well as substantially altering those markets globally. That is a very good thing and worth any loss in those realms as it shifts power out of the hands of industrial groups and to individuals at extremely low cost.

Examining the 1930's reveals some truisms that are still true. Land is no longer being made and is a good investment, even if it is just a place to retreat to. The highest of flying hotel and entertainment values took a hit during the GD but continued on as other Nations pulled out of it and their wealthy spent money. The 'sin' market for alcohol and tobacco products is resistant to market changes and a good place to invest as markets will drive public policy (in re: the removal of Prohibition). Gold actually does keep purchasing power outside of speculative spikes: the cost in gold of a suit in 1920 is the exact same amount of gold in 1990, it is the money that has been devalued. That said it is a 10% hedge, not an absolute buy-in unless you really do expect the economony and legal system to crash and burn.

The question is: not what to invest in, but what do you see in our future? I would make such an investment and hand that over to my close family to continue past my demise. I am not expecting this government to allow radically altering technology to remove power from its hands. But I would invest as above because I trust in civil society to honor agreements made even if our government and economy crashes and burns. We did during the Revolution and after the Civil War.

Mon Sep 21, 03:54:00 AM PDT  
Anonymous Ranando said...

You see BZ, everyone is different.

That's why some people have money and some don't.

Mon Sep 21, 06:06:00 AM PDT  
Blogger Tom said...

BZ - OK, so now we're talking retirement instead of what good the money could do.

A diverse portfolio of mutual funds, municipal bonds, and precious metals. Real estate could be a good investment now since the prices are depressed nationwide, but could take some time to bounce back. If your needs were modest, then living off the interest would be very possible.

Mon Sep 21, 09:37:00 AM PDT  
Blogger Tim said...

Put some of it in the Matthews Asia China Fund. This newsletter shows how China is eating our lunch in many key areas.

But don't forget to put 100K in the collection plate first.

Mon Sep 21, 09:56:00 AM PDT  
Blogger shoprat said...

I would first off set aside a portion to assist my father and the brother who has the bulk of responsibility for him and make sure I get a tax credit for it.

After that Gold and Silver because I don't think a dollar is going to be worth much but gold pretty much holds value.

Mon Sep 21, 10:34:00 AM PDT  
Blogger TexasFred said...

Ranando said...
You see BZ, everyone is different.

That's why some people have money and some don't.
Best damned comment you ever made...

Mon Sep 21, 10:39:00 AM PDT  
Anonymous Ranando said...


That's great news about recouping your losses, good for you, smart move.

Mon Sep 21, 11:56:00 AM PDT  
Blogger DirtCrashr said...

Run for Congress as a Democrat? Those guys don't pay any taxes. Then buy a house in Bangalore - the climate is nice, better than Calcutta anyhow.

Mon Sep 21, 02:52:00 PM PDT  
Blogger Tim said...

I have recouped almost all of my losses. Asian, and especially China, have played a bigger part than US investments. I expect to surpass where my portfolio was by next month unless something like another 9/11 happens. Precious metals, while a great hedge against inflation, will not earn much in a contracting global economy. China and to a lesser extent India are the growth areas. My previous link needs the letter f on the end.

Really, big bankers are just laughing their asses off when reading some of the paranoia of some comments here.

Mon Sep 21, 03:43:00 PM PDT  
Blogger Bloviating Zeppelin said...

Some thoughts: gold seems to be peddled BIG time these days, but I find it difficult to grasp the concept of metal coins.

Yes, if you wish to acquire and hold them for the Long Run and when they can be redeemed at leisure, I can understand their acquisition.

But a LARGE portions of most Common Persons' concerns include "liquidity." And, let's say, in a very "bad" situation, just how "liquid" will those gold coins be??

I submit: not too damned much.

Arkady: nice blog. Let's reciprocate.


Mon Sep 21, 04:00:00 PM PDT  
Blogger TexasFred said...

Tim said... Really, big bankers are just laughing their asses off when reading some of the paranoia of some comments here.
Not just big bankers... But then you have to figure, some people think a million bucks makes em rich... It doesn't... For many, all it does is change your tax bracket, and for a few, it may not even do that...

Mon Sep 21, 08:39:00 PM PDT  
Blogger Greywolfe said...

Actually BZ, the reason I mention coins is that unlike gold bars or even trading in stocks, there is no legal way for the Government to track purchases of gold coins older than 1933. Gold of that age was of good quality and purity and is very easy to liquidate, as there are always people that see gold as a thing to desire.

The only other way to amass quantities of gold that is non-trackable is to mine/pan for it yourself. I've known a couple of people that have made the annual trip to Colorado for just that purpose and after 5 years of doing it, they are starting to collect a surprising amount of placer gold. But the amount of work they put in is definately more than I'm currently in the mood to put out.

So, if the hypothetical million did come in, it would go into gold coins and I'd continue to work. I would point out that in 2005 the avg price of gold was $444 an oz. Now its currently at $1006. an oz. That's good return and if the market does another flop like it did last year, and it will if cap and tax is passed, then we can expect gold to rocket up again.

Mon Sep 21, 11:16:00 PM PDT  
Blogger Tim said...

Burying gold coins in the ground? What a joke. If it gets as bad as all that people with guns will take Greywolf's gold coins. Hoarding gold is a silly thing to do. As the economy improves, gold will decrease in value. If you have just got to invest in gold, I'd look at Freeport Morgan (NYSE:FCX) a mining company. I'd wait for a 65$ entry point.

Real Estate is an excellent investment at the moment. I'd invest thru a real estate investment trust (REIT) mutual fund unless I knew my local market well. I hear San Diego is going to be very hot soon. Owning property is time intensive though.

Tue Sep 22, 03:59:00 AM PDT  

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