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$500G cash that you cant afford to risk, where to put it?
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amother




OP
 

Post  Mon, Jan 06 2020, 5:02 pm
amother [ Jade ] wrote:
I'm surprised no one said this yet, but things in the US are changing for the Jewish and non-Jewish communities. Anti-Semitism, the economy, the value of the dollar, potential war with Iran (and the possibility of a military draft). That's not a country where I would want to have all my assets, let alone get stuck. Does anyone believe CDs and funds (including Vanguard) will be worth the paper they're not even printed on for eternity? I would not bet on that.

OP, I'm saying what I would do in your position: First I would buy a property in Israel. I would take my money and get it out of the USA as fast as I could, as it looks like things there are in the process of taking a bad turn.

Second, I would invest in physical gold/silver bullion stored offshore. Gold and silver bullion stored in a private, insured vault offshore is NOT reportable as an asset on your US taxes. There are several reputable companies offering offshore gold bullion services. Gold is wealth protection (and gold/silver continue to increase in value against the US dollar, as the Federal Reserve's inflationary policies continue to devalue the dollar), while also being a tangible asset, like real estate!

With these ideas, you would protect the value of your assets and have them offshore, in case it becomes necessary to leave the US. An idea which these days sounds increasingly likely.

*Etd. for spelling*


I agree. If I have an account in an Israeli bank's American branch, is that good? Are there Israeli banks that offer cds and money Market accounts?

Btw, gold fluctuates too. (But goes up again).

https://www.macrotrends.net/13.....chart
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amother




OP
 

Post  Mon, Jan 06 2020, 5:08 pm
amother [ Black ] wrote:
She's engaging in what is known as a humblebrag, where she'd pretending to be poor, and oh-so-frugal because she doesn't own multiple homes, but really wants us to know that she's got a half a million.


Really now, without a Username? LOL
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amother




Lime
 

Post  Mon, Jan 06 2020, 5:13 pm
Those accusing op of humblebragging, that's ridiculous.
We once got a gift of $500k, which we used to purchase our home. We are far far far from rich. I am super grateful for everything Hashem gave us and gives us but please don't accuse op of Humblebragging; a one time sum of $500k does not a rich man make.
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amother




Cerulean
 

Post  Mon, Jan 06 2020, 5:14 pm
amother [ Tangerine ] wrote:
In America you would usually say 500k, unless you are a rapper and then it would be 500 Gs.


In the UK they say 500 grand
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amother




Navy
 

Post  Mon, Jan 06 2020, 5:30 pm
I would divide it between retirement accounts, savings- cash, mutual funds, and real estate. If you plan on helping kids with college, college funds as well. (This will help with taxes)
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amother




Green
 

Post  Mon, Jan 06 2020, 5:59 pm
OP, that's great!

I have struggled for many years and we BH were able to save and due to home appreciation, we ended up with a few hundred thousand to put somewhere.
We're also not rich, in that we don't touch the money as we will need for weddings and retirement.
We don't live off any programs, just live under our means, we don't make that much either, we don't buy the latest or go on vacation or any other "needs" many believe are normal for Frum families.

We put our $ in life insurance investments and in some solid businesses. We're also looking into some real estate, not sure yet.

Beware of financial advisors, really do your due diligence as many get commissions and you can't trust completely.

Research everything you do, ask ask and ask again.

Hatzlacha, may it continue to grow.

To all that are struggling, look into ways to expand income, we were stuck for years barely making ends meet and started slowly adding extra little jobs and saving that, we made believe it didn't exist. It was hard as we never have had high incomes.


To those that are sounding jealous, sorry, but you're sounding like the anti semitic people saying that he Jews deserve to be subjected to attacks as they own a lot of Real estate and don't share!
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amother




Jade
 

Post  Mon, Jan 06 2020, 6:10 pm
amother [ OP ] wrote:
I agree. If I have an account in an Israeli bank's American branch, is that good? Are there Israeli banks that offer cds and money Market accounts?

Btw, gold fluctuates too. (But goes up again).

https://www.macrotrends.net/13.....chart


Some say gold fluctuates, and some say the value of the US dollar fluctuates against gold. It depends upon your perspective:) Gold and silver are a wealth preservation tool rather than a wealth multiplication tool. For example, they say during the Roman empire you could buy a nice suit, a pair of shoes and a headdress for 1 ounce of gold. Today for an ounce of gold, you can still get a nice suit, a good pair of leather shoes and a nice hat. Gold doesn't make us rich, but it preserves what we've got, and has done so throughout the ages.

I do know of several Israeli banks offering CDs or Market accounts, and looked into them for myself. But after doing some research, it occurred to me that CDs aren't making anyone money, save the banks. Like in the US, the interest rate you'll earn doesn't keep up with real inflation. When consumer prices continue to rise, as housing prices rise by several percentage points per year in tandem, and your CD or market account earns 2% interest per year, you're losing out due to real inflation. Money market accounts here seem unnecessarily complicated and bureaucratic to me, and I didn't understand that system of investment here well enough to feel comfortable investing in it.
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amother




Burgundy
 

Post  Mon, Jan 06 2020, 6:11 pm
Did OP get a $500,000 windfall, or did she scrimp and save it?

I don't think $500,000 is so much money that she can afford to not be cautious.
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flowerpower




 
 
 
 

Post  Mon, Jan 06 2020, 6:25 pm
Some of you seem really jealous. If you have nothing useful to say then you can just keep quiet!
Op, I am impressed with you that through living frugally you got so save money. Call mesilas or other financial advisers and see what your best options are.
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amother




Bronze
 

Post  Mon, Jan 06 2020, 7:47 pm
amother [ OP ] wrote:
Not quite. Id have nothing in common with the wealthy who have multiple homes, go on many vacations, buy the most expensive jewelry and sheitels, wear designer clothing.

If I'd live and spend anything like them, Id need imabroke.com


Since I'm anonymous I'll be nosy. Where did you get this money from?
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amother




Denim
 

Post  Mon, Jan 06 2020, 10:42 pm
amother [ Black ] wrote:
No one is being "mean" because OP has half a million dollars.

We're simply pointing out that its a lot of money, and that she's not, as she claims, practically poor.

She's engaging in what is known as a humblebrag, where she'd pretending to be poor, and oh-so-frugal because she doesn't own multiple homes, but really wants us to know that she's got a half a million.

Had she said "I recently inherited a half a million dollars" (or received it as a settlement, or whatever ... I'm skeptical that she had $450,000, but no investment strategy until it hit $500,000) "its a lot of money, and I want to make sure that I invest it properly. I'm risk adverse, but looking for long term strategies," the response would have been different.


To me, OP sounds resentful of her frugality and lack of spending, to the point of deprivation for her income level. I can relate. The only thing that would have helped cuz of this audience is leaving out how she is poor compared to others, she is obviously rich compared to others too.
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amother




Coffee
 

Post  Mon, Jan 06 2020, 11:06 pm
amother [ Jade ] wrote:
I'm not sure how illiquid Israeli real estate is. So long as you price a property here at the market rate, it usually sells quite successfully. Funds and CDs are some of the most non-risk adverse investments you could think of. Stock are very risky, and yet what are funds, but a collection of... stocks! What are CDs... buying US dollars! CDs today don't even earn interest equal to the inflation rate. That means you're losing money on inflation. It's madness. While real estate in Israel, like anywhere else in the world, require maintenance and management, that's a negligible problem when you consider that you've got a tangible asset which could earn you a rental income profit, and a place to go should things get even worse than they already are in the States.


Exactly what I was thinking!
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amother




Tangerine
 

Post  Mon, Jan 06 2020, 11:12 pm
amother [ Lime ] wrote:
Those accusing op of humblebragging, that's ridiculous.
We once got a gift of $500k, which we used to purchase our home. We are far far far from rich. I am super grateful for everything Hashem gave us and gives us but please don't accuse op of Humblebragging; a one time sum of $500k does not a rich man make.


No, but that does make you privileged and your relative is probably wealthy.
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sequoia




 
 
 
 

Post  Tue, Jan 07 2020, 2:15 am
😼
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rick1




 
 
 
 

Post  Tue, Jan 07 2020, 2:52 pm
There are many options available to safely invest $500k but it all depends on your age, financial situation, and long term goals with this money. My husband works with Premium Financing which uses the tax free benefits of an indexed universal life insurance policy to enable solid double digit returns. Using an IUL also safeguards the cash value from downward market movements. This is a long term investment strategy. PM if you would like more info.
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amother




Lime
 

Post  Tue, Jan 07 2020, 2:57 pm
amother [ Tangerine ] wrote:
No, but that does make you privileged and your relative is probably wealthy.


Correct, we are "privileged" as in "lucky, fortunate, exceedingly grateful to Hashem."
And yes, the relative is wealthy. But we are not.
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amother




Vermilion
 

Post  Tue, Jan 07 2020, 3:30 pm
rick1 wrote:
There are many options available to safely invest $500k but it all depends on your age, financial situation, and long term goals with this money. My husband works with Premium Financing which uses the tax free benefits of an indexed universal life insurance policy to enable solid double digit returns. Using an IUL also safeguards the cash value from downward market movements. This is a long term investment strategy. PM if you would like more info.


There is no index in existence that has a track record of consistent double digit returns, and that's not including the management fees, agent fees, and cost of insurance inherent in a whole life policy. I find this to be hard to believe.

Regardless, OP sounds like she needs a 5 year plan, not a 20 year plan. 5 years is too short a time period in market terms to risk full securities market exposure, especially given the current volatility and imminence of a correction.
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amother




Orchid
 

Post  Tue, Jan 07 2020, 3:56 pm
I’ll take it!! We’re in debt haven’t paid tuition or rent in months can barely pay for food or basics. There are plenty of people like me desperate for money so ur post is not nice
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rick1




 
 
 
 

Post  Tue, Jan 07 2020, 5:44 pm
amother [ Vermilion ] wrote:
There is no index in existence that has a track record of consistent double digit returns, and that's not including the management fees, agent fees, and cost of insurance inherent in a whole life policy. I find this to be hard to believe.

Regardless, OP sounds like she needs a 5 year plan, not a 20 year plan. 5 years is too short a time period in market terms to risk full securities market exposure, especially given the current volatility and imminence of a correction.


You are correct, this is not a 5 year strategy. You are also correct that a whole life policy wouldn't come close to double double digit returns. He suggested looking into a Premium Financed IUL.
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amother




Black
 

Post  Tue, Jan 07 2020, 6:21 pm
rick1 wrote:
You are correct, this is not a 5 year strategy. You are also correct that a whole life policy wouldn't come close to double double digit returns. He suggested looking into a Premium Financed IUL.


Which allows the policy holder to invest in index funds, AIUI.

Only Bernie Madoff could guarantee double-digit returns over long periodds of time. And look where he is.
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