No. of Recommendations: 0
What kind of advice should I give my brother who has over 3 million from working
for Intel and taking in all stock options. He does not want to work anymore, he is
45, single and feels he could live off of 60,000 a year quite comfortably. Where
should I direct him so the "wise men" will not take his money? Yes, his money is
still in Intell which I would think some diversity would be quite foolish. Hugh

Rethink the 60,000 per year. This is very important for a 45 year old. Does he want to travel, get married at 50? etc. Since he has money and will have time his expenses might increase.

Off the top of my head I would keep 1 million in Intel. Why? I am assuming he may not want to sell the stock so he will keep some. I also think long term it is a good investment. I also think he can live off the remaining 2 million (don't forget taxes as he diversifies. Better get a CPA to help with tax planning) Lets say he lives off of 4% of what ever the 2,000,000 brings. Lets say 75%+(of 2million) in stocks and indexes. 25%- in fixed income depending on his risk factors. I would sell covered call options on the Intell stock to generate income. I would plan on some of these being exercised and try and keep Intel to 1 million. If he does well on Intel opetions and appreciation he can take less out of the 2 million fund or just spend it.

Since he may have a lot of appreciation in the stock some chartible contributions etc may have tax advantages for him. See a CPA.

I think with 3 million he might be able to get into an investment partmership by contributing his stock and getting a diversified portfollio back with no taxes. Maybe look at the 2 million going this way. Check with a big brocker such as Merril Lynch.

He needs a good planner to minimize taxes. Should also do estate planning. Medical directive, power of attorney if disabled, long term care when older.

He should buy expert advice on what to do, but try and avoid fees that go on year after year if you can.
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