You are a Chinese immigrant, inherited a million dollars, just moved to Irvine

[panda]

Just for fun......

Let's say you are a Chinese immigrant who majored in Economics and Finance from the University of Beijing. You inherited $1,000,000 from your dad and just moved to Irvine to raise your family and send your kids to one of the best school districtis in California.

Right before leaving for China, your father tells you, "my son, I will never see you again and this is all the money I can give you, therefore do not squander this money away and invest it wisely to live a happy life in Irvine."  

You moved to Irvine from China on January 3rd, 2012 and you can't get a job since you don't have a visa, so you have to invest this money wisely to produce investment income to support your family without getting a job. What investments would you consider if you were this Chinese immigrant who just moved to Irvine.

Couple of thoughts going through your mind.....

1. If i buy a home in Irvine with all my cash, my equity in the home will be dead equity and i will have no money left to invest to take care of my family. My savings would also deplete very fast from the high mello roos & property tax and HOA. I am not sure if this would be wise move.

2. If I put the entire amount into a money market account, I will get less than 1% interest which am actually losing money due to inflation

3. Gold and Silver seems a bit too expensive right now?. I remember when my father told me told me that one ounce of gold is worth $300 and silver is $4 10 years ago.

4. I remember seeing a mortgage advertisement for 3.875 30 year fixed at Bank of America yesterday. I don?t think I will ever see these rates again in the 50 ? 60 years. Unfortunately, I am Chinese immigrant with no job and visa so no banks would lend to me. I wonder if there is another way I can invest in the opportunity?

What should I do?

 

[socal78]

Oh, please don't delete this one like usual. I miss the Panda "What-If" game. 

 

[panda]

I only erase my posts when IHO puts Johns Creek in the same category as Santa Ana... Crazy offended.

Don't worry this post will not get erased.

Oh, please don't delete this one like usual. I miss the Panda "What-If" game. 

 

[cubiczirconia]

My Chinese "finance" brother would always need help, and wouldn't ever mind paying me in cash.
If you buy a house, you get citizenship - no?

 

[traceimage]

If you buy a house, you get citizenship - no?

If only it were that easy!

I'd work on my "no visa, so can't get a job" problem. Isn't there some kind of work visa foreign nationals can get--H1B or something? I'd try to do that. $1,000,000 and the resulting interest/earnings from investments won't last long enough to live a happy life in Irvine.

I'd also start the citizenship application process, if I intended to live here forever. Incidentally, why is my father apparently kicking me out of China?

 

[panda]

We will name the Chinese immigrant.. "Lin Fen Xu. Lin Fen Xu's primary goal is not "citizenship", but survival as he is now completely on his own and he will no longer receive a penny more outpatient care from his rich Chinese dad. He does not want to dip into his savings if he can help it.

His minimum desired annural return would be 5% - 7% : $50,000-$75,000/year. This would atleast pay for rent & utilities for 2 bed/bath IAC Apartment in either Portola Springs or Woodbury and provide a modest life style for his family.

He would feel more secure and confident, if he can find an investment strategy that will bring him returns of 10 - 15% a year: $100k - $150k/year. This way he will not have to dip into his savings.

If Lin Fen Xu has a natural god given talent of a hedge fund manager and can bring consistent returns of 26%. He will double his father?s inheritance money from $1 million to $2 million in 3 years.
 
Morekaos, Trojan, IndieDev, Round Corners, Qwerty.... "What investment advice would you give to the poor chinese immigrant in 2012 who is trying to survive in Irvine without a job.

 

[socal78]

High rate of return is desirable. Liquidity is no problem. Chinese... possible connections or familiarity with Triad Society. The answer is simple:

Become a loan shark.

 

[qwerty]

We will name the Chinese immigrant.. "Lin Fen Xu. Lin Fen Xu's primary goal is not "citizenship", but survival as he is now completely on his own and he will no longer receive a penny more outpatient care from his rich Chinese dad. He does not want to dip into his savings if he can help it.

His minimum desired annural return would be 5% - 7% : $50,000-$75,000/year. This would atleast pay for rent & utilities for 2 bed/bath IAC Apartment in either Portola Springs or Woodbury and provide a modest life style for his family.

He would feel more secure and confident, if he can find an investment strategy that will bring him returns of 10 - 15% a year: $100k - $150k/year. This way he will not have to dip into his savings.

If Lin Fen Xu has a natural god given talent of a hedge fund manager and can bring consistent returns of 26%. He will double his father?s inheritance money from $1 million to $2 million in 3 years.
 
Morekaos, Trojan, IndieDev, Round Corners, Qwerty.... "What investment advice would you give to the poor chinese immigrant in 2012 who is trying to survive in Irvine without a job.

i would tell him to put the 1M in SDS and short the S&P500, go all in!

alternatively, if if he wanted to keep his million in the bank, he could rent a two bedroom IAC apartment and enter the korean sex trade, that will create alot of free cash flow while still preserving his principal, the returns on his 2000-2500 monthly rent would be insane, much much better than the 26% the best hedge fund manager can do.

 

[MovingOnUp]

Didn't we already discuss this topic earlier today about the Chinese?

Straight to Vegas where he'll find all his friends. Then let it ride. Ride or Die.

With the winnings minus the money spent on American dream girl hookers, open a Chinese restaurant.

 

[irvinehomeowner]

I only erase my posts when IHO puts Johns Creek in the same category as Santa Ana... Crazy offended.

Oh... WAH.

Graph has done worse to you and you're offended at that? IrvineHomeShopper should be offended that I compare Santa Ana to John's Creek!

Put the mil into a McD's franchise... should be cheap real estate in John's Creek. Then just rent in Irvine... or Floral Park.

 

[irvinehomeshopper]

Just the last month at the courthouse there were 4 cases of pimping in irvine. All are Chinese nationals operating whorehouses in Irvine.

I will pick that due to low overhead.

 

[morekaos]

Ahhh, a challenge in the morning.  I love a challenge with my coffee.  Off the cuff I would allocate roughly 25-30% to National tax free bonds.    The remaining 70-75% I would spread over domestic stocks allocated between utilities, convertibles, reits and large caps.  Rough yield would fall in the 5%-8% after tax range but if done well the risk could be minimal.  How you ask?  Pick your poison, ETFs, funds, managers, that's what they pay bums like me for.

 

[LAtoOC]

My advice below is for entertainment purposes only

Tax Free Muni 35% - PCIMX - Assume you get the annualized 3.60% return (tax free)
"Safe" stock 35% - MO/T/POM/ED - About average yield of 4.5-5% after tax yield of 3.325%, but potential for Capital Gains
Risky Allocation - 25% - Despite what some people say, I still like REITS this year, but will need to watch - AGNC/RSO/NLY/CIM, whichever one looks good + BDC companies - ARCC/TCAP/AINV/MAIN - Average yield of 11%, after tax yield of 7.7%
EM Allocation 5% - Some allocation to Asia EX Japan, maybe an ETF, probable yield about 2% if an ETF, but goal for this one is Capital Gains

After tax yield of 4.42%. Mr. Irvine may want to look into prostitution.


You can add some diversification with a Commodities allocation, but that is only useful if you think the world economy is in recovery mode.

 

[sgip]

1) Fast track the process and marry an American Citizen.

2) Buy an Irvine area Chick-fil-A franchise for giggles.

3) Move to Switzerland. Centrally located. Good Chocolate. Strong currency. High gold reserves. Easily defensible area.

My .02c

 

[roundcorners]

The parents in China probably couldn't make the 1-mil without any US business contacts or associates, well, unless it was stolen by gov corruption, won thru gambling or other illegal means...

assuming that $ was earned somewhat legally, there should be some small biz contact here in Cali, use those contacts to find a small business to invest in, warehousing, industry, importing, exporting, retail, etc...

A small cash infusion of just $250k-$500 in a small business should yield monthly or yearly dividends.  Live on the rest of the money in the meantime.  Being a silent partner or better yet an involved partner gives him the opportunity to be involved in daily operations; he can learn the in & out of the biz, therefore keep tabs of the health of the biz...

The guys can start out in sales and learn the language and assimilate into the culture; help grow the biz, part-time or full-time and work under the table for cash...

Work on his citizenship in the meantime and a shot at the American dream... I don't believe in -not- working...

and in this case, even just inheriting $100k should work...

 

[IndieDev]

Just the last month at the courthouse there were 4 cases of pimping in irvine. All are Chinese nationals operating whorehouses in Irvine.

I will pick that due to low overhead.

That's a good business model. Lots of potential customers (lots of asian guys in Irvine have no game), low overhead, and since Irvine PD is obviously corrupt, potential to get the law off your back fairly easy.

 

[irvinehomeshopper]

IPD protocol is to fight crime that affect FBI crime index. Pimping and prostitution do not fall into into the FBI criteria. IPD is not interested in the bust unless the neighbors pressure them.  This is a very safe business venture. The stupid ones got caught usually pissed off the neighbors. The end units by the exit stairs or motorcourt are pretty discreet. No start up cost and bureaucracy license fee. No uncle Sam taking a cut. All cash transactions. Everyone is very happy at the end.

 

[ps99472]

IPD protocol is to fight crime that affect FBI crime index. Pimping and prostitution do not fall into into the FBI criteria. IPD is not interested in the bust unless the neighbors pressure them.  This is a very safe business venture. The stupid ones got caught usually pissed off the neighbors. The end units by the exit stairs or motorcourt are pretty discreet. No start up cost and bureaucracy license fee. No uncle Sam taking a cut. All cash transactions. Everyone is very happy at the end.

Haha funny last quote...hey I got an idea, build a casino in portola to honor the dead ones in the ground,  we can call it Portanga or Morongola Casino.  Probably need a few investors for this and pay off the council members .

 

[IndieDev]

IPD protocol is to fight crime that affect FBI crime index. Pimping and prostitution do not fall into into the FBI criteria. IPD is not interested in the bust unless the neighbors pressure them.  This is a very safe business venture. The stupid ones got caught usually pissed off the neighbors. The end units by the exit stairs or motorcourt are pretty discreet. No start up cost and bureaucracy license fee. No uncle Sam taking a cut. All cash transactions. Everyone is very happy at the end.

BTW, did one of the Chinese "business" rings they raided involve some shadiness at the Lollicup on Walnut and Jeffrey? The wife and I sometimes go to that area for free Yogurt from Yogurtland (we are neighbors with the owners). We saw way too many "older chinese gents" with sub-20 year old Chinese women who spoke a lot of mandarin...

 

[irvinehomeshopper]

To answer your question I have to do market research and conduct interviews. Can you wait 9 months before I can draw a conclusion or you will need an answer right now base on my stereotype knowledge?

Asian UCI students are turning tricks to pay for their education and expenses. The common meeting places from internet ads like Backpage, CL an SexUSA forum are places that the girls could blend in easily with the other patrons. Boba and Yogurtland places are some of the meeting places before they take the older men to the rear office parking lots to do their tricks. The rear side of Arbor Center is quite quiet and safe for the girls. If anything  bad happens the girls could seek safety running out of the car to the busier side of the center by Taiko across the pond.