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If you had a Million bucks in cash.....
- Thread starter Nexen
- Start date
A long term "don't touch" portfolio IMO would be something like
20% bonds (government, corporate, emerging markets, some junk)
20% equities(US 5%, EFA 5%, Emerging markets 5%, 5% short/bear fund)
20% managed futures (fund of managed futures funds, alternative LSC or RYMFX)
10% long commodities
10% Master Limited Partnerships (a basket, or ETF e.g. http://seekingalpha.com/article/135750-jpmorgan-launches-new-mlp-etf)
10% REITs (e.g. IYR/RWX)
10% carry trade (DBV)
IMO beats "running your own company" by a longshot. Less hassle, less workload, less risk etc. etc.
You only run a company if you absolutely love doing it (but don't do it for the money) or if you have to (absolutely need the money). Not worth it just to earn more money if you don't enjoy what you're doing.
20% bonds (government, corporate, emerging markets, some junk)
20% equities(US 5%, EFA 5%, Emerging markets 5%, 5% short/bear fund)
20% managed futures (fund of managed futures funds, alternative LSC or RYMFX)
10% long commodities
10% Master Limited Partnerships (a basket, or ETF e.g. http://seekingalpha.com/article/135750-jpmorgan-launches-new-mlp-etf)
10% REITs (e.g. IYR/RWX)
10% carry trade (DBV)
IMO beats "running your own company" by a longshot. Less hassle, less workload, less risk etc. etc.
You only run a company if you absolutely love doing it (but don't do it for the money) or if you have to (absolutely need the money). Not worth it just to earn more money if you don't enjoy what you're doing.
Quote from makloda:
A long term "don't touch" portfolio IMO would be something like
20% bonds (government, corporate, emerging markets, some junk)
20% equities(US 5%, EFA 5%, Emerging markets 5%, 5% short/bear fund)
20% managed futures (fund of managed futures funds, alternative LSC or RYMFX)
10% long commodities
10% Master Limited Partnerships (a basket, or ETF e.g. http://seekingalpha.com/article/135750-jpmorgan-launches-new-mlp-etf)
10% REITs (e.g. IYR/RWX)
10% carry trade (DBV)
IMO beats "running your own company" by a longshot. Less hassle, less workload, less risk etc. etc.
You only run a company if you absolutely love doing it (but don't do it for the money) or if you have to (absolutely need the money). Not worth it just to earn more money if you don't enjoy what you're doing.
Thank you for the first intelligent reply.
As to the person who suggested placing the million on T or VZ, not only are you neglecting the old golden nugget of not putting all your eggs in one basket but after taxes I would be surprised if you even beat inflation. Particularly with the state of the US Dollar. That 15% tax break in dividends won't last past 2010 with Obama. One more thing, MO has better yield.
i would go this way:
20% precious metals
20% reit
20% CAN SLIM style investing- not the can slim etf that is always in the market though, one that is cash the vast majority of the time.
20% bonds ~ mixed between TIPs and short-term currently wait for better yields before going out past 1-3 year treasuries
10-15% corporate debt some csj, hyg, jnk, lqd, ciu- mainly camp in csj until treasury yields break and bring these up with them
5-10% cash
the key here is as little market exposure as possible (especially if you are alive) because the market isn't going anywhere for the next two decades. CAN SLIM is my only market exposure and that is cash 85%+ of the time. wait until the baby boomers spend a decade hitting the bid to pay their bills, then might be a decent time to start buying stocks.
20% precious metals
20% reit
20% CAN SLIM style investing- not the can slim etf that is always in the market though, one that is cash the vast majority of the time.
20% bonds ~ mixed between TIPs and short-term currently wait for better yields before going out past 1-3 year treasuries
10-15% corporate debt some csj, hyg, jnk, lqd, ciu- mainly camp in csj until treasury yields break and bring these up with them
5-10% cash
the key here is as little market exposure as possible (especially if you are alive) because the market isn't going anywhere for the next two decades. CAN SLIM is my only market exposure and that is cash 85%+ of the time. wait until the baby boomers spend a decade hitting the bid to pay their bills, then might be a decent time to start buying stocks.
Quote from Nexen:
How would you invest it, for how long and where?
Would be interesting to come back to the replies in the future and see how we all did.
I will post mine when it's complete.
Thank you for participating.
there is no reason you cant swing trade a million bucks. it works very well thank you. the advantage of having that much capital is that you dont have to make any risky trades to make a fine living.
First of you need a place to live of your own and 100k for emergencies.
So that even if you lose all you don't end up in the street.
If you have all that you can start to speculate more agressively.
If you don't a place where you would want to live could cost you 400k for a small appartment making that 1 million not that big of an amount anymore so it really depends on your personal profile.
Don't put your eg in one basket.
No one has ever gotten rich putting his egs in 10 baskets.
So that even if you lose all you don't end up in the street.
If you have all that you can start to speculate more agressively.
If you don't a place where you would want to live could cost you 400k for a small appartment making that 1 million not that big of an amount anymore so it really depends on your personal profile.
Don't put your eg in one basket.
No one has ever gotten rich putting his egs in 10 baskets.
oh please rent for a few years, housing market is no where near a bottom (at least in large cities, maybe you can buy in towns or villages)- or buy a place in mexico
I would place the money on low risk investments, CDs, Savings Accounts, Bonds and the best checking account interest rate I could find to cushion the following plan.
(All diversified to obtain full protection from FDIC, multiple institutions etc.)
Obtaining a Trader's Degree
**********************
- Watching price and volume for years until an understanding of price action is achieved.
- Once this is accomplished, graduate to cash trading with small amounts of capital.
- Continue with gradual but responsible size increases until you are prepared to trade the principal yourself. At this point you kill the safe investments and you become your own manager trader.
In the process I would live off interests and borrow the rest from the principal to be able to study daytrading for up to 5 years. This would be an education costing around 100-150k from the principal borrowed plus the interest gains to support yourself and your family in the process.
If after 5 years an understanding for price action is not achieved, I would use the remaining 850-900k (1 Million + interest - principal borrowed) to start my own business.
This suggestion is precisely what I did three years ago, Im currently on the last step, gradual size increase, once every 3 months, provided the trimester was steadily profitable.
(All diversified to obtain full protection from FDIC, multiple institutions etc.)
Obtaining a Trader's Degree
**********************
- Watching price and volume for years until an understanding of price action is achieved.
- Once this is accomplished, graduate to cash trading with small amounts of capital.
- Continue with gradual but responsible size increases until you are prepared to trade the principal yourself. At this point you kill the safe investments and you become your own manager trader.
In the process I would live off interests and borrow the rest from the principal to be able to study daytrading for up to 5 years. This would be an education costing around 100-150k from the principal borrowed plus the interest gains to support yourself and your family in the process.
If after 5 years an understanding for price action is not achieved, I would use the remaining 850-900k (1 Million + interest - principal borrowed) to start my own business.
This suggestion is precisely what I did three years ago, Im currently on the last step, gradual size increase, once every 3 months, provided the trimester was steadily profitable.