If I were Filthy Rich
By bhattihs+35 Annuity or Cash : Where would you park all the cash ?
Someone in earlier thread mentioned, that Cash option right away is much better than Annuity option because inflation eats away every year. Granted that's a good thought, but :
If you chose Cash option, where would you park those Millions / Billions ? Banks only secure upto FDIC limits. Buying a property would extract property taxes. Even if you go for S&P index fund route, that assumes that you are betting on that America will continue to be unchallenged number 1 economic powerhouse as it was for last 100 years, because if not then even the best index fund could not reach its highest previous peak (Think Japan). Besides, after getting Billions I really wouldn't wanna think about investing or growing it as much as I would about Preserving it.
So What's the SAFEST way to park all that money for the most secure "Preserve" route not "Growing" it route ? That's nearly guaranteed to be safe. Not Banks because like I said above their FDIC insurance doesn't cut it.
Recent responses
+42 @DocAculaRedux Tbf, if America collapses economically, then an annuity could go up in flames. They can only pay you for so long as they CAN pay you. So it's whether you trust yourself and your banks, or the government and the lottery.
+18 @TheWalkingDead91 Diversify Diversify Diversify. Not a financial advisor, just a random broke AF fellow dreamer, but I’m thinking; Personally I’d park my money in all kinds of assets, ensuring that even in the worst case scenario where a couple of them devalue to zero, I’d still be rich or at least well off. Stock Market, Property, Precious Metals, Cash, Bitcoin: probably in that order.
+17 @og_ricc People, when you become wealthy, you no longer bank at regular banks (except to withdraw petty cash). There's private banks for rich folks as well as wealth managers to help you manage your fortune. So when you hit the jackpot, just go to J.P. Morgan, Morgan Stanley, Citigold, Chase or the other dozen banking institutions catering to the rich and famous and let them manage your wealth.
+16 @ReadRightRed99 1. FDIC limits are PER ACCOUNT, not per person. You certainly could spread your money across multiple accounts. Regardless, your money is safe in the bank in the US well above the FDIC guarantee limits. But that would be foolish to hold your money in the bank because your money needs to be working for you from day 1. 2. The first thing I’d do is deposit into a HYSA or money market to earn 4% while I work with my adviser on how to best manage my money. This is just about the safest way to preserve your capital and come close to keeping pace with inflation. 3. I would most certainly invest a portion in the stock market through a broad array of mutual funds. 4. Buy real estate. I’d invest in commercial property to earn better returns than stocks.
+14 @SticksAndBones143 If you really won enough money to be able to just park it and live off the interest, why wouldn't anyone just park it in a HYSA and never look at it again? Seems like the safest bet short of an entire US Economic collapse
+12 @brianbbrady Invest in a diversified portfolio of stocks and bonds and commodities and commercial real estate. Buy a bank, insurance company and precious metals. Borrow against the stock to buy personal property like mansion and yacht. Become invisible by using entities like trusts and LLCs to own assets. No gifts or elaborate acts of wealth. Just simple high quality living. Good food. Off grid choices for vacations and travel.