From Matt Levine's Money Stuff/Bloomberg
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"Where are the Reimanns’ yachts?
Let’s say you’re rich. Like really quite rich, billions of dollars, money that you inherited because your great-great-great-grandfather founded a big chemicals business. You will never need to work, and don’t. But there is the question of how you should invest your money. Your choices include, in roughly ascending order of fanciness:
Box of cash under the bed. This is honestly very cool, but probably not feasible in the modern economy.
Go to the Vanguard website, open an account, go to some low-cost index funds, click the “buy” button, type “$1,000,000,000” into the “amount” box, spend 20 minutes on this, get yourself a nice mix of stock and bond funds, never check the website again, and occasionally withdraw 0.1% of your money to buy a house.
Walk into your local Merrill Lynch office, find a financial adviser and pay her a fee for managing your money. She’ll put you into a lot of index funds, probably, but also some racier stuff. “Ah you are an accredited investor,” she’ll tell you; “can I interest you in a private credit fund?” There is a range of fanciness here, and at your level of wealth you will probably be assigned to a very fancy private wealth adviser who can give you the raciest investments, the best tax and estate advice, help buying yachts, etc. But basically you are outsourcing your wealth management to someone who works for the bank and who has other clients.
[Post trimmed by admin LadyGeek. "Please limit quotations and reproductions of external materials to the minimum necessary to make your point." See: Quoting outside material]
You can sign up for free emails of his opinion column.
"Where are the Reimanns’ yachts?
Let’s say you’re rich. Like really quite rich, billions of dollars, money that you inherited because your great-great-great-grandfather founded a big chemicals business. You will never need to work, and don’t. But there is the question of how you should invest your money. Your choices include, in roughly ascending order of fanciness:
Box of cash under the bed. This is honestly very cool, but probably not feasible in the modern economy.
Go to the Vanguard website, open an account, go to some low-cost index funds, click the “buy” button, type “$1,000,000,000” into the “amount” box, spend 20 minutes on this, get yourself a nice mix of stock and bond funds, never check the website again, and occasionally withdraw 0.1% of your money to buy a house.
Walk into your local Merrill Lynch office, find a financial adviser and pay her a fee for managing your money. She’ll put you into a lot of index funds, probably, but also some racier stuff. “Ah you are an accredited investor,” she’ll tell you; “can I interest you in a private credit fund?” There is a range of fanciness here, and at your level of wealth you will probably be assigned to a very fancy private wealth adviser who can give you the raciest investments, the best tax and estate advice, help buying yachts, etc. But basically you are outsourcing your wealth management to someone who works for the bank and who has other clients.
[Post trimmed by admin LadyGeek. "Please limit quotations and reproductions of external materials to the minimum necessary to make your point." See: Quoting outside material]
Statistics: Posted by RetiredArtist — Wed Aug 14, 2024 7:13 pm — Replies 0 — Views 397