I recently sold a house.
I have no wish to buy another house with the proceeds.
I also have no wish to have manual control (for lack of a better term) over how the money is invested.
I know absolutely nothing about investing. I do not want to manually pick out stocks, or bonds, or real-estate, or futures, or derivatives, or whatever.
I was thinking I would give a house-sized pile money to an investment firm. I would then allow the firm invest the money on my behalf.
As naive as I am, I can be very easily swindled.
A representative of investment firm might tell me, "we will give you 3% per year."
I would say, "that is great!" then had over the moolah, even though someone with more than half of a brain would not accept anything less than 10%.
- The money being invested is very liquid (in cash or checking account)
- The sum being invested is approximately equal to the median-value of a house in the United States.
- We want long-term investments. I do not need to receive interest payments any more often than once a year. I never need to receive the original principle back.
- When it comes to risk, I would like a less than 1% chance that half or more of the money evaporates into thin air in the next 10 years. Little dips in the portfolio's value are okay, but catastrophic loss is to be avoided.
What is the minimum rate of return I should demand from an investment firm?