Reply to What a self made multiple millionaire would do in your shoes to increase your net worth.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I'll be following your responses with interest, as I am a self made millionaire (okay, with my husband ;-) ) as well.

We are late 40s, make $400K to $450,000 a year, depending on bonuses. Both full time employees.  Our kids are 10 and 12.

No debt of any kind.

Assets are retirement tax advantaged funds ($1.3 million); taxable accounts ($600,000); company stock ($120,000); kids' college funds ($140,000).  Our house is worth about $750,000.[/quote]

You do not have enough risk in your portfolio.  You are majorly exposed to inflation, which I expect to be very high in the coming years.  You need a major hedge.  I would look into mortgaged real estate.  You should do a Roth Rollover.  The taxes suck, but you should begin rolling, especially with taxes where they are today.

The company stock worries me.  It is too much tied up in one place, but not enough (presumably) to give you any real benefits.  I've never done this before, but presuming it is publicly traded stock, I would put a margin account on it and buy other stock.  Margin accounts are non recourse so if the value of the stock goes down they will force sell the stock for you, but never come after you.  It is margined against just the company stock.  By margining it you get to keep the stock, but buy something that is a hedge to it dropping in value.  Margin interest is very low, so this strategy should increase your return by a few percent, while minimizing your exposure.  Generally you can margin to 50% of the stocks value.[/quote]

I am required to keep this much company stock - condition of employment.  Why am I exposed to inflation if I have growth stocks? Only $70K of our tax advantaged investments is in a traditional IRA.[/quote]

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