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10-29-2012, 09:20 PM
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#1
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Dryer sheet wannabe
Join Date: May 2010
Location: Smoky Mountains
Posts: 23
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Where to put 300k?
Hi, new to the site. Rolled over 300k to my Schwab IRA. No debt. Thinking about index funds?...anyone.
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10-29-2012, 09:35 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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I just made a replying post in the other thread, but will copy it here.
Schwab is one of 4 brokerages that I have accounts with.
Schwab has several ETF funds with very low expense ratios, such as 0.04% or 0.07%. You can buy domestic total market, or large cap, small cap, international, or emerging market ETFs, etc... As to selecting the right composition for yourself, you may need to do some reading.
PS. As you have an account with them, trading of their ETFs is commission-free.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-29-2012, 10:17 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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what was it in before you rolled it over?
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10-29-2012, 11:52 PM
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#4
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Dryer sheet aficionado
Join Date: Oct 2012
Posts: 25
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saved.
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10-30-2012, 06:15 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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It really depends on what your personal target AA is and how your existing AA relates to your target AA. There are loads of good, no-load, low-cost equity and bond index funds available as well as good balanced and target date funds, but a lot depends on what your target AA is (and your target AA depends on your time horizon and risk tolerance).
While I own equity and bond index funds, if I were to own a balanced fund I would look at Vanguard Star (which I have owned in the past), Vanguard Wellington and Vanguard Wellesley.
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10-30-2012, 07:45 PM
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#6
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Dryer sheet wannabe
Join Date: May 2010
Location: Smoky Mountains
Posts: 23
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Decided on Disney...(DIS)...bought 5500 shares for 280,000. Pays a dividend, incredibly good revenue stream, just bought LucasArts.
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10-30-2012, 08:15 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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From index funds to DIS. Sounds like a movie. Best wishes.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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10-30-2012, 08:36 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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Quote:
Originally Posted by NW-Bound
I just made a replying post in the other thread, but will copy it here.
Schwab is one of 4 brokerages that I have accounts with.
Schwab has several ETF funds with very low expense ratios, such as 0.04% or 0.07%. You can buy domestic total market, or large cap, small cap, international, or emerging market ETFs, etc... As to selecting the right composition for yourself, you may need to do some reading.
PS. As you have an account with them, trading of their ETFs is commission-free.
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+1
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10-30-2012, 08:45 PM
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#9
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Dryer sheet wannabe
Join Date: May 2010
Location: Smoky Mountains
Posts: 23
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something wrong with DIS?
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10-30-2012, 08:50 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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I think the Bogleheads would say you are now in Disney Land.
__________________
Work is something you do to get enough $ so you don't have to....Me.
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10-30-2012, 08:58 PM
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#11
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Full time employment: Posting here.
Join Date: Jan 2012
Posts: 518
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Quote:
Originally Posted by oldnews
something wrong with DIS?
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I think a lot of people here would say buying that much of a single stock is quite risky. "Putting all your eggs in one basket."
SIS
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10-30-2012, 09:14 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Quote:
Originally Posted by ShortInSeattle
I think a lot of people here would say buying that much of a single stock is quite risky. "Putting all your eggs in one basket."
SIS
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Nothing wrong with Disney. Great company.
But having such a large amount in a single ticker is foolish IMO. I hope you get lucky and it works out for you. Good luck.
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10-30-2012, 09:35 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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I have not owned DIS, and do not follow it. So, this made me curious to take a quick look.
Compared to SPY, a surrogate for the S&P500, DIS's dividend is 1.2%, vs. SPY at 1.98%. P/E ratio of DIS is 16.6 vs SPY at 14. The growth prospect of DIS looks better than SPY according to analysts, so I guess the market gives DIS a price premium.
It is not a bad company, but it's the lack of diversification that most people would worry about. I myself never put more than 5% in any company. But it may just work out for you, who knows?
By the way, the market has been closed due to Hurricane Sandy, so how did you buy it?
PS. Out of curiosity, $280K/5500 = $50.91/share. The quoted price at Friday 10/26/02 close was $50.08.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-31-2012, 02:18 PM
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#14
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Recycles dryer sheets
Join Date: Jun 2010
Location: Southwest Florida
Posts: 470
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Quote:
Originally Posted by oldnews
Decided on Disney...(DIS)...bought 5500 shares for 280,000. Pays a dividend, incredibly good revenue stream, just bought LucasArts.
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I hope you're pulling our leg. The only way you should even consider this much in one stock is if the $280,000 is about 5% of your $5.6 million portfolio. Somehow I feel someone jerking our chain.
Also, OP, are you really from the Smoky Mountains? I wonder, because you don't spell it correctly.
Bruce
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10-31-2012, 02:58 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,304
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Quote:
Originally Posted by oldnews
something wrong with DIS?
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Not at all, but a little less diversification than an index fund no? You mentioned an index fund in your first post...
Like others have said, I'd never put more than 5% of my portfolio in an individual equity, no matter how wonderful and bulletproof I thought the company was/is. You never know who the next WaMu, Circuit City, Enron, Borders, Nortel, Wachovia, Lehman Bros., etc. may be. The list is a mile long. Best of luck...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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11-01-2012, 04:59 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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I would invest in CDs, laddered, for 10 years. If you are in your 70s or 80s, I would buy SPIAs. My view only, I know others will disagree.
Quote:
Originally Posted by oldnews
Hi, new to the site. Rolled over 300k to my Schwab IRA. No debt. Thinking about index funds?...anyone.
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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11-01-2012, 06:41 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Quote:
Originally Posted by obgyn65
I would invest in CDs, laddered, for 10 years. If you are in your 70s or 80s, I would buy SPIAs. My view only, I know others will disagree.
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Why not plunk the whole amount into Disney?
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11-01-2012, 07:23 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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I don't know about laddering CD's, I think you would get eaten up by inflation.
__________________
Work is something you do to get enough $ so you don't have to....Me.
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11-01-2012, 09:01 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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Quote:
Originally Posted by oldnews
something wrong with DIS?
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I was happy with 5% of my portfolio in any one individual stock. I had one or two of them that actually went to zero. You never know. I'd be happy with 100% of my portfolio in one broad based mutual fund. It's invested in lots of companies. It's not going to go to zero. As good as Disney may be, it's just one company. One big accounting glitch and your portfolio could be toast. Permanently.
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11-02-2012, 03:52 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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I have nothing against Disney. I am just more conservative with my investments than most participants here. It is ok to disagree.
Quote:
Originally Posted by pb4uski
Why not plunk the whole amount into Disney?
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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