How to Invest $1 Million | A Simple Strategy to Invest a Windfall
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Published 2021-04-02
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0:00 How to Invest $1 Million
2:00 How Ryan Cohen invested $3.4 billion
4:04 Why investing $1 million is hard
8:50 How to invest a windfall
12:07 The Warren Buffett Portfolio
15:10 3 Fund Portfolio
19:34 Indvidual Stocks
23:26 Book recommendations
In today's episode, I'm going to answer a deceptively simple question. The question that seems hard, and it's really pretty easy. And it's this, how should you invest $1 million? Now, a lot of you may be saying, Rob, that's the last thing I need to worry about. I'm just trying to save $50 a month, or $500 a month, or whatever. It actually turns out to be, I think, a pretty significant question. And we can learn a lot about ourselves and investing generally, by asking this question and answering it, even if maybe it's not directly applicable to you right at this moment.
#1million #investing #windfall
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own
All Comments (21)
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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!
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I received advice to spread my investments across various assets like stocks and bonds to safeguard my inherited portfolio, which stands at about $2.5 million. My usual strategy of buy-and-hold doesn't
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Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence.
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Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
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Ensuring the protection of your capital holds greater significance than solely focusing on making money. This is primarily because once your capital is lost, the process of generating profits becomes significantly more challenging. It is comparable to the notion of "missing the train" versus the irreversible consequence of "losing your money." While there are various opportunities available, once your funds are depleted, it becomes exceedingly difficult to recover.
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Rob, You nailed it! I left a long term employer and rolled it over to an IRA. It was scary and relatives had assets under management and so we did the same. Four to five years later I am self directed, thanks to you and others!
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Thank you. I am always impressed with your videos. The content is spot-on and provides excellent advice. In addition, you provide a feeling of confidence in your honest delivery. You help us relate to the message by tying it to your own decisions.
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I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. I played with the stock market sometime in 2020, and I was surprised at how well it turned out. I want to put in $90k more into the market. I heard people are making really great returns despite the downturn. Any recommendations?
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First time watching Rob Berger. Great talk Rob. Really informative, intelligent points in this video. And you have a nice, likable presentation style. So I subscribed. I'm 56, it's nice to find a financial youtuber who's more at my own stage in life.
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How to invest $1M? That's easy. 1) Pay off your house and any other debt 2) Keep enough cash to sleep very well and fund any major expenses in the next 5 years (home renovations, kids' college, etc.) 3) Dump the rest in an S&P index fund.
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The was a great, no bs, straightforward video!!! I love his chill style and I’m probably going to binge him over the next few days. Lots of learned knowledge and experience!
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I couldn't agree more. Common sense, simple portfolio construction with 2 - 6 ETF. And avoiding complexity. I really like your take on those topics. And you combine your knowledge with life experience and pragmatism. I´m currently about to retire and only recently found your channel. Thx for your work and your views.
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Allocation should be driven by 1) risk tolerance, 2) years to retirement and/or years to needing access to money, and 3) objectives and final goals. A million maybe enough for some and a person may choose a less risky allocation to avoid volatility while providing needed cash requirements.
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Thank you Rob for the wonderful insight. It just answers to the point my concern at this point. Appreciate that!
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Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
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Thank you so much for your video's, they are excellent. I was wondering if a personal financial advisor is needed if I follow either your 3 or 6 "bucket" portfolio structures and then use a good accountant to advise me on tax related issues?
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I'm considering using Vanguard's advisory services. In the introduction call, the advisor asked me where I would get income since I am considering retiring before 59 1/2. I said I would consider 72t distributions. The advisor wasnt aware that 72t distributions applied to IRAs. Has me thinking this person may not be right for me.
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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.
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Thank you for explaining this in a clean way..
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@Rob, If you are near or reach age 65, do you think you would change your percentage of investment allocation? or any other adjustment? thanks.
