| Friend receiving 2 million from settlement-Advice Needed |
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shouliha
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 23 Nov 2007
Location: Mt Pleasant SC
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| Friend receiving 2 million from settlement-Advice Needed |
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This sounds crazy. I have recently (past 5 months) met someone who is / was, semi homeless. A street smart guy, who details cars. He did my car, I helped him out with cash, etc... He was injured in a bus accident, and just received 2 million cash. (it clears on monday). He trust no-one (and I don't blame him) but he does trust me. He has no debt, is 42, and single. He wants my assistance / advice with his money. He's not the most sharp financial guy. I obviously don't want to see him blow the money (nor does he) He / I, have already allocated about 300K for a nice condo, 30K for a car. (he has neither) My thought currently is to take 1.5 million and buy a lifetime immediate annuity. This would pay him 7K per month, for life. He's still got 500K cash, to buy a home, nice car, and still have a few hundred K left (20-30% downpayment) The annuity might seem crazy, but he doesn't have the skills to invest and I don't want to see him burn the money. (so by puting a chunk in an annuity he won't touch, and we'll see how he does with the 500K) I don't want anyone to take advantage of him. With this scenario, he's got the essentials (nice ones to) at least 250K in the bank, and will receive 7,000 per month until he dies. Without trying to sell me anything (Financial guys) does anyone have any thoughts about this, good or bad? A better way to do this? I know I should consult a financial advisor, but, to be honest I know these guys are looking at how much commission they make. He's got plenty to live on, I would like to keep this simple, guaranteed, and let him live a comfortable life. (if it were my money, I'd invest other ways, but for him, I want to again keep it simple and guaranteed.)
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Fri Nov 23, 2007 12:28 am |
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Apollo
Senior Member
Cash: $ 73.85
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Joined: 10 Sep 2007
Location: New York
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If you're friend is happy with 7k every month then there is nothing wrong with your plan.
Since you said that he will have about 250k in the bank that is sufficent for him to make adjustments, i.e. invest part of his money if he ever chooses to do so while the 7k will be there every month.
It is not smart to play it safe but it is safe to play it smart.
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Fri Nov 23, 2007 10:05 am |
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ukey
Contributing Member
Cash: $ 7.45
Posts: 32
Joined: 02 Nov 2007
Location: Singapore
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or u can look into going to an investment bank for a wealth management account. Think they have started accepting $1m accounts. I might be wrong...
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Sat Nov 24, 2007 4:03 am |
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