REVscene - Vancouver Automotive Forum

impactX · 10-07-2009, 07:33 PM

Say, if you have 2 million+ Canadian dollars, and you want to have a relative safe way to invest this chunk of money so you can live off the interest without touching the principal.

What's a relatively risk-free (4-6% return per year) to do it in a long term? (Yeah, I know about savings account, term deposit, but the interest rate fluctuates too much over the years and the rate is crappy right now, so can't really do it year after year.)

One investment option I figure is that government bonds (that have excellent ratings), which yield around 2-6% a year.

Any idea?

SkinnyPupp · 10-07-2009, 08:37 PM

I would buy a giant pile of sugar

Ulic Qel-Droma · 10-08-2009, 02:19 AM

give one million to me. I'll turn it into a lot more.

misteranswer · 10-08-2009, 02:39 AM

Long term government bonds is the only way I can think of. Virtually credit risk free.

Hehe · 10-08-2009, 09:45 AM

IMO, commercial real estate in big US cities/metro area has pretty good potential for you.

You could buy the property outright. With ideal properties, you are looking at least 7% cap rate. And the price in US is pretty much bottom alrdy. Can't really go much lower than what's at right now.

People often stay away from commercial properties due to high entry barrier (you need some big money down). But with 2M, you could do pretty good.

Again, this is only valid if you were to invest it in relatively long term, at least 5+ years.

kluk · 10-08-2009, 09:52 AM

I agree with Gov't Bonds. 2-6% ain't bad and its bscly guaranteed.

impactX · 10-08-2009, 05:35 PM

Guess that's the best option and probably good to opt for one with earlier buy-back date.

Chuck Norris · 10-08-2009, 10:14 PM

If you're looking for dumb, safe and secure, it's not going to be huge returns.

Count your blessings if you can get 4% After tax that means you're making above the average family salary in BC.

$2 million doesn't get you what it used to.