Investing $1,000,000 and making $100,000 passive income a year outside of real estate.

[James Park]

Several people asked this question of how to invest a $1million to get a safe return of 10%. Many of advice given were buy 10 SFRs for $100,000 each, 5 SFRs for $200,000 or a $1,000,000 apartment and collect $100,000 passive income a year. Put it all in real estate. What if you don't want to tie it all into real estate.

Let's say that you have $1,000,000 in cash and you want to avoid the real estate market all together. Let's also restrict loaning out the money or buy/selling notes and you are only to invest the money in your Fidelity brokerage account. How would you invest a million dollars to net a $100,000 income a year without gambling and taking too much risk?

Possible options you are considering
1) buy gold at $1585? silver at $30? Knowing that these assets have risen straight up for the last 12 years.
2) bet that the interest rates are going to rise, which hasn't occurred for the last 32 years. Will the dollar strengthen with a rising interest rate environment as more off shores capital will come back to the U.S. What about gold? Does it go up or down when interest rates rise? Can you make 10% by simply shorting the long term treasury bonds? Will real estate prices rise in a rising interest rate environment?
3) Is TIPS a good bet? What about emerging market bonds? What about high yield corporate bonds? junk bonds? What happens to the emerging market bonds when the dollar strengthens?
4) The best money market pays 1%, which means you will collect $10,000 a year simply putting the entire million in a money market which does not sound so attractive.
5) How about laddering CDs if the rates start to rise? Will we see money market rates pay 5% like we saw in 2007?

What path would you take if investing in real estate is not an option?