How to Invest $1 Million | A Simple Strategy to Invest a Windfall

Hi Rob. Love your videos and the simplicity of investing. I have recently interviewed 3 financial advisors, and while they all provided some great information and a complex investing scheme, I am leaning back to simplifying and going to either the 3 or 6 fund method. I recently retired, so I have money in IRA's (80%) and about 20% in taxed investments. Since I plan to let my IRA grow tax free, and will be drawing on my post-tax investments first, I am thinking I might want to move a big chunk to dividend funds. This would reduce my taxes, since I would be able to keep my gross income low, and would pay 0% tax on dividends.
Any thoughts on this?

My gf just got 2 sums of money first was a little over a mil and second over 3 mil and we just don’t have any idea what to do sir I’m 25 all we know to do is get a good financial advisor. I’ve been poor poor my whole life and now bam we got this and we wanna not blow it and make many millions more

Apple,Amazon,Google,and Nvidia.I don’t want to run on a gold plated hamster wheel or pull be a donkey pulling a cart.I do my thing and don’t lose any sleep at night.just keep up on the world news and hope some politician doesn’t find a way to wreck it.

Simple program I have folled through thick and thin: on friday afternoon, check the NASDAQ... if it is a positive week, do nothing. If it is a negative week buy the percentage of your milly that the index is down for the week. I call it "Smart dollar cost averaging."

Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.

i have about 700K to invest. i wanna invest and basically retire. i was thinking dca about 500k into VII s&p500, about 10k a week for the first year

As a nurse and part-time real estate agent with $330k saved, I'm keen to invest in the stock market to combat low bank returns and guard against inflation. How can I build a solid portfolio?

Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

This is exactly what I needed to hear. Great video, thank you for simplifying investing for us. You really alleviated the fear around investing

Question I have is: once we say invest in the 3 fund portfolio: how do we go about rebalancing? I.e
Do we need to increase the bond, lower the stock closer to retirement? Much appreciated!

Thanks Rob
I live in the Washington DC area and would love a recommendation on a fee only financial advisor to help my with my portfolio construction/mainentence. Someone who was knowledgeable about ROTH conversion and tax implications would serve me well too. Might you have a recommendation?

very easy for me; 50% laddered interest and individual bonds, 30% SPY buy and hold, 20% SPXL with 20/50 EMA passovers of SPY, and rebalance within absolute bands of 5% representation change..When 20 over 50 it becomes 50/90 portfolio otherwise it becomes 70/30 portfolio.. you are welcome

Buy gold.

I definitely wouldn't pay someone to help me choose which stocks to buy. My invested wealth is almost entirely in index funds. But I DO think it's important to rely on some outside expertise when your wealth is significant (over $1M), you have many types of assets (house, 401K, stocks, etc.), and/or your life situation is complicated or changing. Tax implications of every decision can be enormous. There may be windows for making certain changes, contributions, or withdrawals. A financial plan is essential.

Just a perfect video for simple guy in Vermont. Thank you!

Why live off less than 4%. That’s ridiculous. Your getting that in a simple bank account ( money market). You are loquacious and are not getting to the point. You are 10 minutes into the video and have said nothing on how to invest. Get to your point!

Please get to the point

Get too the point.

Rambling for 2/3 of video and no short on detailed advice.

I appreciate your normalness!

If someone came up to me and asked me I got this $1mil windfall, how should I invest it?
My first question would be, how old are you?
My second question would be, do you own your own home?
Depending on thoues answers I would ask other questions.

Say... From the time of this video & till today; Now where would you have been in a gain with BTC..?? :)

LOL
Never-before has a video been so irrelevant to me.

Please quit wasting time on errant thoughts and focus on the subject - not your personal non-sequestration random thoughts. Some good data here, but focus please.

There are 24.5 millionaires in the U.S. that’s about 7.3% of the U.S. population. It’s not a crazy thing to cover. As a millionaire, I should know. It’s also nowhere as big a deal as it used to be. Inflation will make even poorer people millionaires at some point.

blah blah blah

Put it in an index fund and leave it alone. All that matters is fees.

Correct info.

best advice Ive heard in many years

How is 6K a year for 20 years a million dollars? Given the returns of s&p500, you have to either contribute 16K a year, or extend the time to 30 years.

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️

I don't agree with "Even if I had 100 Million dollars, I would put it in 3 fund portfolio"..........really?

In a world of YOLO minded individuals, most are not thinking about saving any money just to die and never end up enjoying it. Hence after Covid you saw so many people wasting their money mostly on bucket list things and have made the economy as outrageously priced for simple things as you see today because most people have no discipline nor the desire to have any. So unless you're rolling the dice, if your young to middle aged and that you'll live till your 80 or leave your fortune to your children or loved ones you'll most likely spend all your money, which after all is the "American dream", which is something you have to be sleeping to believe in.✌🏽🇺🇲

I’m surprised this guy has any money

An excellent discussion. Keeping it simple is a huge step up for the majority of people.

video too long!

Warren Buffet doesn’t advise bonds at all, 0. There’s countless of videos where he doesn’t advise that.

Excellent, well-balanced, commentary. You are very intelligent, knowledgeable, and articulate. Thanks for your video.

Buy 15 BTC with $1m. and get off the fiat hamster wheel

I spend about 5k a month on Chewy products. A month ago I became a nonprofit. I asked Chewy what they might be willing to offer with respect to discounted product to feed our huge feral colony. Their "charity" department offered us 10 percent off our NEXT order, or $30. Whichever was greater. And that, Ladies and Gents, is how the rich stay rich.

Ran out of time. Spent 8 minutes listening and never even started saying it.

I’ve always been one to pay off loans as quickly as possible ….my wife and I had very little when we go together a little over 20 years ago. Both of us had middle of the road jobs. It paid the bills and we live relatively comfortably…..can’t buy whatever we want but we could buy the basic things we needed…her being a waitress her whole life and me being an auto tech for a long time…we decided to buy a restaurant if we were gonna work that hard , we would do it for ourselves instead of making other people rich…..since then our restaurant has done well and helped us by rentals during the housing market crash from 08-10 or so. Tenants have paid 100% of everything for the multiple rentals we own and the restaurant is paid for…..starting to sell off the rentals and working at selling the restaurant soon. Both of us have physically worked our whole lives and now looking to invest in some sort of insured investment plan…..it is scary cause I don’t totally understand how it works other than we give a bunch of money and get a percentage back every month to live off of…it’s just weird to imagine

Great video. I had been evaluating my holdings and was leaning to moving to a six fund portfolio of all low cost index funds and/or etfs. Then I spoke to a representative (supposedly a fiduciary) of a large fund company about doing a managed service. He made some good recommendations about investment allocation and tax management across my 3 accounts (IRA, Roth IRA and Brokerage). When I got the list of proposed funds to use, I was stunned. The IRAs were to be spread across 13 funds, and the brokerage across 23 funds. I looked at the fees for some of the funds. They were high (as you warned about in the video). I did not go with the managed service.

I faced more or less exactly this situation. One of my foremost concerns was to exercise some caution so as not to lose the principal. I entered the stock market and became surely overdiversified, with a certain portion in CD's but most of it spread far around amongst stocks. I ended the latest year with about a 40% profit, and things continue prospering along nicely. I trade frequently seeking profits, but also am aware of dividends and selling option premium to enhance returns. I make all my own decisions and would never entertain paying any portion in fees to any so-called professional for management.

I would buy 20 or 30 dividend paying stocks and funds across several sectors. It would look pretty much like what I have now.

Hey a VA Tech shout out, I'm a HOKIE!

I like to have my portfolio to look like a full body dry heave set to music. With all the kicks and the thumbs.

GREAT episode