I will have an unusual year this year and will make close to 1 million. what is the best way to invest. Im 36

I make a good living, but this year will have close to a million in income. I live fairly conservative and i am looking for advice on how to invest. what would be the safest and best return

My 12 Step Program for Millionaires(TM) (C)2008

1. I would go seek a professional adviser with 10+ years experience.

2. If you haven't already you need an estate plan.

3. You should seek a CPA or CPA attorney to help you with taxes. Perhaps create a side business that can allow some greater write offs.

4. Max out Roth IRA each year. Dollar cost average in the S&P 500.

5. If you have kids, max out their College IRA or other 529 plan.

6. You may consider placing some funds in a tax sheltered annuity. Money can grow tax deferred. No withdrawals until 59 1/2. Pay tax only on gains when withdrawn at 59 1/2 or later.

7. Buy distressed real estate - prob one of the best long term investments right now, and may the best time to buy in our life time. Look at bank foreclosed properties, short sales, rental properties. Generate income (use property management firm to handle tenants if you go that route) Good tax deductions here too.

8. Keep in mind that at 36 you need to plan for retirement too. You have at least another 40-50 years+ and that is a long time for money to grow. Historically inflation will eat up your interest and cash over time.

example:
By historic inflation standards, $1 MM today will have the buying power of just $300,000 in 30 years.

9. You need a short term, mid term and long term plan.

10. Short term, US Treasuries are the safest and federally tax free interest. Mid term depends on your needs. Long term: Retirement focus.

11. You may want to look at AAA rated insured, tax free municipal bonds in the city or state you live in. Make sure the bonds are not subject to AMT tax. That way the interest on the bonds are 100% tax free on federal and state and not subject to the dreaded AMT tax. Diversify bonds. Avoid bond funds.

12. See an asset protection attorney to help control risk in the event of a law suit. The more money you have, the more likely it is that you will be sued sometimes in your life, even if it is baseless.

Hope this helps as a starting guide. See my bio of what led me to make these suggestions.

PS I know you are conservative and don't want a lot of risk. I've helped many clients who have these goals. So I know I don't have to tell you that you don't have to trade stocks, trade Forex, buy gold, become a lender, speculate on wild ventures, or joining some nutty investment scheme.

You can stick to the basics and have your money start working for you.

Good Luck!

I think you are young enough to take a little risk with stocks. The site below has lots of good suggestions.

take a look at www.forex4investors.com - they are about to come up with a new trader who made over 50% over last several months with highest drawdown having been only 15%. You could go with lower leverage of course.

give it to the government. They'll take care of you.

I wouldn't put it in any equities. If you have a million cash, I would put $100,000 in a high yield bond or bond fund. PIMCO High Income (PHK) has a very nice yield. ING Clarion Global Real Estate fund (IGR) yields 15%, and there is currently a nice buying opportunity as well.

Next, I would take another $100,000 and put it in a money market account. For the remaining $800,000, I would use it as a down payment on a $1.6 million apartment building that is currently being rented at market rates with at least 90% occupancy and a high yield. Now you will have a 50% equity interest. In time, the apartment complex will pay for itself.

Banks are more than willing to lend for apartment buildings. People will always need a place to live. In time, the building will be paid off and you will be receiving a monthly income forever that you can either (A) live off or (B) reinvest into other properties, hedge funds or mutual funds.

Hope this helped. Good luck!

The best advice I can give you is to consult SEVERAL people on how you can best plan for taxes--- at that income range, taxes will be the #1 way you will lose money. Take advantage of tax shelters. Be aware of any deductions you can take and maximize them.

Otherwise there is no good rule. Just diversify.

I like the Vanguard funds because of their nice expense ratios. You can also buy admiral shares ($100,000 and up minimum investment). And it's so easy to track your money online! Plus, I've always had bad luck with financial advisors.- they always seem to have a conflict of interest. And the fee for service folks never tell me anything useful. But that's just me.

I can't afford to be too conservative or safe at this age. CD, savings are paying low interest. You can find some bond index funds paying about 5%. That's the safest one I have. But it depends on your risk tolerance and how involved and active you want to be in moving your money around. My style is to pick an investment and leave it there. I only move it if there is a major change in return or something a lot better comes along.

If this were true...you'd be be lunching with your financial advisor rather than asking the unknowledgeable, broke masses on yahoo answers.

YOU CAN INVEST IN LOANS. BECOME A PRIVATE FUNDER. YOU CAN DO COLLATERAL LOANS. YOU CAN ACCEPT JEWELRY. I CAN HELP YOU GET CLIENTS AND ASSIST WITH CI OF BORROWERS AND APPRAISAL OF PROPERTY, EVEN WITH DOCUMENTATION... THIS IS A WIN WIN BUSINESS. YOU CAN EMAIL ME BACK AT allancr13@yahoo.com. so we can discuss this matter.. I'm presently employed at Ortigas and i have 6 years experience on field of lending.

Buy bonds funds. avoid any stocks temporaly.
Also real estate, except in Middle East.

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