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Taking the lump sum is not at all indicative of a lack of good investment advice. Going with the installment payments is equivalent to taking the lump sum and t
by scott00 8y ago
Taking the lump sum is not at all indicative of a lack of good investment advice. Going with the installment payments is equivalent to taking the lump sum and then investing it all in US treasury bonds. That's an extraordinarily conservative investment strategy and most investment advisors would recommend something more aggressive.
- WorldMaker 8y agoIt's more that that the ratio is so out-of-tune with the ratio of investors whom should be getting conservative investment strategy advice at the decision point in question. The qualifier here may be "good investment advice". Most investment advisors would recommend something more aggressive, but they also get paid a lot more in that case, that doesn't necessarily correlate with "good advice".
- fjsolwmv 8y agoGetting a surprise $100M is different from managing your portfolio. Aggressive means easy to lose it all due to ignorance or fraud. Getting a dozen mulligans via installments is good insurance against losing it all.
- scott00 8y ago> Getting a surprise $100M is different from managing your portfolio. It's really not that different. All of the advice out there concerning how to prudently manage a portfolio of $100K applies pretty well to $100M. Going up to the $100M opens up some additional options (private equity, hedge funds, venture capital, real estate) and involves some additional taxes (estate/gift taxes), but you could do a lot worse with your $100M than sticking 60% in low cost equity index funds and 40% in low cost bond index funds and ignoring alternatives and tax optimization. > Aggressive means easy to lose it all due to ignorance or fraud. More aggressive than ultra-conservative does not mean aggressive in an absolute sense.