What would you do? A little hypothetical...

[tolga]

Hi all, long time lurker, first time poster...

without exhaustive detail to the background of the situation, it would appear that my family is preparing to sell our company, from which we will likely net a good amount (my estimate is somewhere bet. 15-20Mil. dollars).

I'm about to graduate from college, and while selling the company means I dont' get the job I was planning on getting, it does mean that I would become my dad's chief advisor on what to do with the money from the sale of the business (fair enough, financial pros would likely be consulted, but he respects the way I approach things and we often work things like this out together). so now for my hypothetical....

what would you do (investment-wise) with that amount of money? as for some conditions, let's say that the money can all be used for investing (life-expenditures will be taken care of), and that no one here is delusionally craving turning 20 million into billions. what are some options on how to invest this money, to continue to make money, and to insure a comfortable (read: college and reasonable leisure) for my family in the years to come?


I'd love to know what you all think.

thanks

Tolga

PS. good books to learn about general investing?

[parttimepro]

Sounds like you chose the right parents.

First thing I would do is wonder why I'm asking a bulletin board half populated by degenerate gamblers what to do with 20 million dollars. This is enough money that professional management becomes worthwhile. If you had 20k, I'd tell you to buy a diversified set of index funds, including foreign and domestic equities and bonds, with a small percentage in commodities and real estate. Small tax inefficiencies wouldn't be a big deal. With this much money, it is worthwhile to have someone with formal training and experience advise you.

The one piece of advice I can give you is that you will probably spend less for this professional if you go with someone who charges a fee for service (i.e. X dollars per hour), compared to a percentage of your assets.

[tolga]

obviously, because I'm a degenerate gambler too!

the amount was irrelevant (and may be higher or lower than the actual sum!), I just wanted someone to direct my research a little more. clearly, professionals will be involved, but just like buying a car or a house, i don't want to go into the field totally naked. I want to be able to ask the right questions, etc.

thanks for the reply

Tolga