Where would you invest 750k USD?

[Dreamy]

>> Remaining Farm Land

How it works? For example, if you have account in US broker. Is it possible to buy stocks of Farm companies in US? I didn't see really, most of them are not public, but private, and their stocks are not selling on NYSE for example. The same question about other agricultural, for example, Bill Gates bought a lot of agricultural land in US. But for example I don't know any company that grow something in such lands + it is public and it is possible to buy its stocks on some stock exchange.

 

[drumtraks]

FAB in the UAE is giving 4%+ on sitting money, yearly basis. That amount will be available as a credit line (ie. credit card).

 

[JimBeam]

About the initial question:
If you need cash flow (you need to live of something) you could park that at JEPI ETF and get roughly $6 - 8k in dividends - MONTHLY! If you don't use all cash each month it will auto-compound.
And it's not a commodity (like gold, silver or oil) so you need to be speculative about it price or you need to sell to get the cash (and if the price is bad you'll have to sell at a loss).
This ETF will pay you dividends each month and even if the stock is down a bit you will still get dividends (maybe a bit lower as well) but you don't have to sell anything at a loss to get some cash.

If you you don't need that much cash flow then consider SCHD (or a mix of these two ETFs).
Both are zero maintenance (unlike real estate) and you can convert it back to cash with a click of a button.

FAB in the UAE is giving 4%+ on sitting money, yearly basis. That amount will be available as a credit line (ie. credit card).

Would like to know more about this.

 

[OffshorePhantom]

If you need cash flow (you need to live of something) you could park that at JEPI ETF and get roughly $6 - 8k in dividends - MONTHLY! If you don't use all cash each month it will auto-compound.
And it's not a commodity (like gold, silver or oil) so you need to be speculative about it price or you need to sell to get the cash (and if the price is bad you'll have to sell at a loss).
This ETF will pay you dividends each month and even if the stock is down a bit you will still get dividends (maybe a bit lower as well) but you don't have to sell anything at a loss to get some cash.

That is interesting! The only problem is if you are a UAE resident there is a 30% WTH tax applied on those dividends, which can be lowered down to 10-15% if you live in some other treaty countries.

 

[denniz07]

JEPI ETF and get roughly $6 - 8k in dividends - MONTHLY!

It just has a very short history so far. With a 10% dividend yield you are kind of beating the returns of the S&P 500 for the past decades. It is somehow too good to be true.
Not saying it is bad. Just some doubts, because don't undestand how it works and what the downside is.

 

[JohnnyDoe]

It just has a very short history so far. With a 10% dividend yield you are kind of beating the returns of the S&P 500 for the past decades. It is somehow too good to be true.
Not saying it is bad. Just some doubts, because don't undestand how it works and what the downside is.

They are selling covered options. It’s good until they have a -90% drawdown, which is typical for this type of strategy. Regular small returns, limited upside potential, high risk (read: certainty) of ruin.

Many have failed in the past with this strategy for various reasons, mainly because of hubris. You never know what a fund manager really does with your money.

 

[Mercury]

They are selling covered options. It’s good until they have a -90% drawdown, which is typical for this type of strategy. Regular small returns, limited upside potential, high risk (read: certainty) of ruin.

Please elaborate.

"JEPI has a total of 132 holdings and holds stocks from the United States that are in the S&P 500. The top 10 holdings account for 15.28% of the fund's assets."

Stock market is not as volatile as crypto, a -90% drawdown is unlikely to be expected on a mix of 100+ blue chip stocks from the S&P 500 ...

 

[JohnnyDoe]

Please elaborate.

"JEPI has a total of 132 holdings and holds stocks from the United States that are in the S&P 500. The top 10 holdings account for 15.28% of the fund's assets."

Stock market is not as volatile as crypto, a -90% drawdown is unlikely to be expected on a mix of 100+ blue chip stocks from the S&P 500 ...

You don’t need a -90% drawdown in stocks for a fund to go bust. There are so many other factors to consider.

As I wrote, you never know what a fund manager really does with your money.
The portfolio managers are: Hamilton Reiner Raffaele Zingone
I remind you who were the portfolio managers of LTCM: Myron Scholes - Wikipedia Robert C. Merton - Wikipedia

This JEPI is not the holy grail. It’s just a fund selling covered options.

A good Twitter thread on selling options:

https://twitter.com/x/status/1063702374232064000

 

[JimBeam]

JPMorgan runs this fund and it's a simple strategy. They buy dividend/bluechip stocks and write calls against them and collect premiums. A 90% loss is absolutely impossible but it can limit uplift potential for sure.

You have similar funds like DIVO operating since 2016 and they didn't had 90% loss. On the contrary they had about 10% YoY gain in the past 5 years.

It's includes a bit more risk than just buying a stock or SP500 ETF but is still pretty safe.

 

[Jorozey]

Sorry for the late reply.

What return are Bulgarian investors seeing on them? Are they buying a share of a turbine?

I invested in a solar panel thing a while ago on a complete whim just to see what it was all about. Sun Exchange.

As I mentioned above, a second hand 3.2MW Enercon earns around 300-350k per year according to my source of information. I'm not familiar with shares on turbines, but I know you can partner with another person to buy a turbine 50/50. If you want accurate information I can put you in touch with a person who deals with the sale and their construction in Bulgaria if you wish. He will surely answer all your questions with accurate data.

Is it really worth it for a private investor? I mean if my numbers are right a turbine costs more than 2MM so you make 17% return in one of the best years. Stocks etc. have about a return of 7%.
One other risk is that, EU is trying to get their money back though excess return tax. So he might be forced to pay a part back or go to court.

To be honest on one hand it is very interesting. On the other hand it sounds like a business for the big guys (companies) which have the expertise and have the economics of scale.

Indeed, the big boys invest in turbines, smaller investors in solar panels. Private investors can afford it as long as they are financially secure. Second hand 3.2MW Enercon turbine range around 500k euro +/-, this includes the turbine itself, transport, truck-mounted crane needed for installation and workers, but no warranty. Brand new turbines with truck-mounted crane and installation exceed 1M Euro, there of course you get a warranty. This is information that my client shared with me.

 

[alek9898]

Sorry for the late reply.


As I mentioned above, a second hand 3.2MW Enercon earns around 300-350k per year according to my source of information. I'm not familiar with shares on turbines, but I know you can partner with another person to buy a turbine 50/50. If you want accurate information I can put you in touch with a person who deals with the sale and their construction in Bulgaria if you wish. He will surely answer all your questions with accurate data.


Indeed, the big boys invest in turbines, smaller investors in solar panels. Private investors can afford it as long as they are financially secure. Second hand 3.2MW Enercon turbine range around 500k euro +/-, this includes the turbine itself, transport, truck-mounted crane needed for installation and workers, but no warranty. Brand new turbines with truck-mounted crane and installation exceed 1M Euro, there of course you get a warranty. This is information that my client shared with me.

can you please DM me

 

[alistera]

There are specific wealth management numbers attached to investments of this size, for example Equities being 23% of the portfolio, I work with a hedge fund architecture however the wealth managers clearly state one pre-requisite.

The goal of a hedge fund is to generate 15-20%pa returns, the part which is never mentioned that is to protect 80% of the profits, today due to the new dynamics those hedge funds will be only able to protect 50% of profits taking gross returns down to 7-10%pa, hence massive worldwide fund redemption.

This applies to all investment vehicles from real estate to art to stocks, at $100,000s to invest your baseline investment is 7-10%pa gross return, if you try and go for 15-20%pa you will likely only be able to protect 20% of the profits and expose the underlying capital to losses, you don't want to do this. I was working with people fund managing their family office and private funds, via an institutional architecture, one of the approaches they use is to take 20% of the allocation on higher returns and leave the other 80% in non-volatile bonds/real estate but generate the 20%pa over the entire portfolio, it's one scenario.

In the end it all comes down to a very specific set of numbers, which the wealth managers kindly gave me, and what you want to achieve to either grow or maintain the capital as they use different approaches, I was generating 50% per quarter for a family office to seed a $10mil private fund they wanted launched at 50%pa, as with all things the fund owner couldn't understand why you can't just generate 100%pa for the private fund if you can for the family office, it doesn't work that way.

The platform (think of it like a Bloomberg Terminal but with algos to replace people and fund managers to curate content), last year provided 50% return on a Tesla short and 70% return on a long Boeing position via the stock research reports, the one thing we see all the time is people spend 80% of their effort to generate capital and 20% to maintain it, whereas it's 80% effort to maintain the capital, losing the one key point along the way regardless of the asset class, protecting 80% of the profits made which then by default protects the underlying capital because anything less than 80% and you expose the capital.

 

[clintk84]

Hi guys,
I just sold part of my SaaS. Currently have 750k USD in my new LLC in Citibank US.
What would you guys do with that amount in terms of investment? Mid-High risk high returns?
Would love to hear from you guys? Also if you have some interesting biz ops would love to talk 1on1.

Cheers.

Hello

I have sent a DM regarding investment into yachts,
I did have 2 previous posts about the topic, once such opportunity has been taken and no longer available

 

[alistera]

Hello

I have sent a DM regarding investment into yachts,
I did have 2 previous posts about the topic, once such opportunity has been taken and no longer available

Do you know the wealth management number of net worth that should be allocated to a yacht, I was talking to someone a few years back who was a broker for mid-end yachts, she didn't have the faintest clue what that number was and her 'guess' was so far off it was not funny, it would have been rude to enlighten her!

 

[JohnnyDoe]

Do you know the wealth management number of net worth that should be allocated to a yacht,

So now wealth managers even have calculated how much you should invest in a yacht? What about hookers?

 

[JimBeam]

I've spoken with a friend who works at high-street bank in London.
He told me that "yachts" are for HNWIs that have hundreds of millions of $ and that their bank had dedicated teams that would assist the clients with everything related to that.
So, if you don't have what it takes, better stay away as that's not a game for you (you're still not at that level).

 

[FantomOffshore]

So now wealth managers even have calculated how much you should invest in a yacht? What about hookers?

Hookers were always a part of wealth management, although you could hardly call it investing.

 

[clintk84]

Do you know the wealth management number of net worth that should be allocated to a yacht, I was talking to someone a few years back who was a broker for mid-end yachts, she didn't have the faintest clue what that number was and her 'guess' was so far off it was not funny, it would have been rude to enlighten her!

Actually I don't think that number means anything, unless you are taking about super Yachts / HNWI ?

The catamaran yachts we build range from $500k for a basic 50ft open plan day charter yacht to $3m for 64ft carbon racing catamaran, so it all depends on spec and use.

The consumer market ranges from big boys who want to show off their fancy toys, all the way down to small business and couples who just want to sail around the world, or retire as a nomad.

Just look at YouTube and you find numerous people who live off a yacht and their online content.

I've spoken with a friend who works at high-street bank in London.
He told me that "yachts" are for HNWIs that have hundreds of millions of $ and that their bank had dedicated teams that would assist the clients with everything related to that.
So, if you don't have what it takes, better stay away as that's not a game for you (you're still not at that level).

That depends on the context of the individual and the yacht. That's like the bank saying the common man cannot buy a 'car'! Yes the common man cannot go buy a brand new Ferrari, but he certainly can buy a standard spec Ford or Chevy

Check my previous reply too

 

[JohnnyDoe]

I've spoken with a friend who works at high-street bank in London.
He told me that "yachts" are for HNWIs that have hundreds of millions of $ and that their bank had dedicated teams that would assist the clients with everything related to that.
So, if you don't have what it takes, better stay away as that's not a game for you (you're still not at that level).

Of course “wealth managers” prefer that money is allocated to their stupid products, instead of being spent on something real they have no control on and makes the client happy

 

[JimBeam]

I guess you're missing the point here a bit. Buying a yacht is not the same as buying a house or a car: it's way more expensive, requires a lot more planning, it takes years to deliver, you need to find a place where to keep it, maintain it, crew trainings etc. Usually a new company is setup just for that etc. So it's a very complex product and top banks offer top their clients help and support during that process. Banks will still make money from the deals because not many clients have a couple 100M laying around doing nothing so they might need some financing/loans/lombards etc.

Guys that own hundreds of millions of dollars have already spent a some coin on bank's bulls**t products already.
So, now it's the time to sell them something else - a dream and probably the most expensive "toy" a man can own.