Living Unscripted - Handling millions harder than making them?

[e_fastlane]

The last part of Unscripted hit really close to home for me, as I have needed to start making money on my money years ago already. The issue is that I have been too busy making money in my business instead (or enjoying my free time). This results in 7 figures sitting in cash and withering away it's value to inflation.

MJ makes everything seem very simple and easy...However I feel like there is a lot glossed. Which is fair considering Unscripted is not an investment book. But to be honest, it left me more lost than when I began.

Some inconsistencies:

1.

On the one hand: We should just be able to follow some simple rules and something like 5% year after year is very easy to get.

On the other hand: Someone must have not told the guys that do this for a living, since all the funds lost their asses during the crash. (Even the "top dogs").​

2.

On the one hand: I need to be in the know enough about the state of the economy and different industries I am investing in so I can manage the money intelligently.

On the other hand: MJ says he just takes a daily "10 second portfolio peek". It seems like this glosses over all the leg work in the background that has to happen for some days to be just a peek.​

3.

On the one hand: I recognize that there is no free lunch and I need to do my own research.

On the other hand: It sounds like "unscripted " means the goal is to go from business owner to professional financial adviser (of myself).​

4.

On the one hand, I believe MJ and how well he has been doing.

On the other hand: The stock market has just been in a crazy rally for almost a decade and most people made money even with poor decisions.​

Now switch gears to my problem. My time is still best spent investing into my business and not figuring out investing. If it was so low risk and easy, then this service would just be offered. To an average bystander, it seems like this exact service is offered. They call themselves financial advisers, portfolio managers or simply the guys that run funds. So where are the guys that are actually competent? Not everyone is the fresh graduate with only book knowledge. They supposedly have the same ideas of diversification (hence why a fund owns so many different stocks). How can I give someone all my money and get a guaranteed 4% back every year and let them keep the rest? I'm begging to give them my money!

The biggest thing I see wrong in the financial industry is there is no Skin in the game. They make money regardless of whether they make me money. Are there any firms or advisers out there that only make a percent of profit? I would be willing to let them make alot of money from me.

On the other hand..... I doubt banks are giving mortgages for 3.5% if they thought they can make 4% somewhere else........So the best I've been able to make of the situation is that unless I want to start working as a hedge fund manager as my 'retirement' job, I have to keep making money till I have enough to amortize over the rest of my life. Which is unfortunately a much bigger number. Can anyone provide any words of wisdom to straighten me out?

 

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[CareCPA]

...
The biggest thing I see wrong in the financial industry is there is no Skin in the game. They make money regardless of whether they make me money. Are there any firms or advisers out there that only make a percent of profit? I would be willing to let them make alot of money from me.
...

If I remember correctly (from the little studying I have done for an adviser designation), this is considered unethical as it can lead to investments that are not in the best interest of the client.

If you just want 4% returns every year, consider looking into annuities.
I'm sure quite a few bonds and bond funds would also fit the bill.

ETA: obviously with an annuity, you no longer have access to the principal, just the guaranteed payments.

Edit 2: if you really just want 4% a year, I can think of some real estate transactions that would make sense.

 

[Tom.V]

Not the worst of problems to have, but I think expanding on the potential ways you can strategically park your cash could be very high value to someone in your position. Pure reliance on a financial manager to try to eek out a few % points just screams risk to me. Why not look into acquiring real estate? Domestic or abroad. There are many emerging markets out there with higher speculative growth potential.

Cryptocurrencies are also a fairly safe long term bet if you are diligent and diversified. Even taking a bet on a dark horse with a low entry can sometimes yield 1000%+ returns in short time (had a 800%+ return coin that I sold off yesterday).

What I'm getting at is while it may seem like extreme risk to some, educating yourself of the possibilities and finding groups of similar people in similar scenarios can open up the door to much higher potential returns with defined risk.

I've also heard that there are offshore banks with annual returns in the neighborhood of what you're talking about, but I don't know for certain. Maybe @GlobalWealth can weigh in.

Disclaimer: I'm no millionaire, but I'm trending in that direction and am trying to plan for the situation you're in as best as possible.