Asking For A Friend
This evening I had a lengthy phone call with a very close friend who has just returned from a family holiday in Mauritius. His mother is fairly wealthy and was on holiday with them over dinner one night mentioned she was unsure about her investments.
The US Dollar has depreciated by around 15% this year alone in physical buying power excluding inflation so holding on to $2 million in cash is not good news. The mother is adding $100K per year to the lump sum which is 5% and doing the maths the dollar value is growing, but is losing real value.
The mother is visiting an investment consultant this week and I was asked for advice on what questions to ask. What would I be doing with $2 million in cash and how would I invest this sum. My friend was chatting as a friend to another friend as we have so much history (30 years) doing business together and the trust is there. We are like brothers who discuss almost everything and this topic kind of threw me.
Not Financial Advice As I Won't Be Giving Any
Over the last year we have heard how will street has been turning to Bitcoin as a hedge against inflation and devaluation of the US Dollar. I know what I would do if I had $2 million lying around, but I do not feel as though it is my place to give advice. I gave him some questions for his mother to ask the investment advisor so we shall see what he says and then discuss this further. This is not financial advice, but more of a guidance. The dad was the smart one who invested wisely and he is no longer around. I won't give them financial advice because I cannot do this even hypothetically, but will listen to what is said as this is no place for me to say either way as this is not my money.
If it was my money the decision would be easier because whatever you do it is your decision and you have to live with that decision good or bad. When you give someone else financial advice you could be blamed good or bad and why we don't do this even if the question is hypothetical.
My friend is concerned as there are 3 kids and this one day will be their inheritance so he is not only looking out for his mother, but also his brother and sister. Most of us have been involved in crypto for many years and would not be concerned especially thinking long term. Bitcoin in 10 years from now will not be $115K and the USD will still be USD with $1 being $1, but as buying power how much will $1 be worth in real value?
What I am asking you is give me some ideas of what would you do if you had $2 million sitting in your bank account? I have many ideas besides buying a crypto portfolio like stocks and shares, but again timing the market is also a good idea and seeing Buffet sold shares recently there is definitely market uncertainty. Buying property is another option with various deals that offer you a 10% return on investment within a 10 year time period.
We shall know more later this week whenever the meeting is with the financial advisor as I am curious to know what advice they are given.