5 million at 24

[daveh]

Let's see:

3.6% * 30% Vanguard Intermediate-Term Tax-Exempt
4.2% * 30% Vanguard Inflation-Protected Securities
1.5% * 20% Vanguard Total Stock Market
1.5% * 15% Vanguard Tax-Managed International
1.5% * 5% Vanguard Emerging Markets ETF

= 3%

Monty,

Was this in 2005? How long have you invested in Vanguard? Can you give yearly return estimates?

I am half tempted to invest in 11mnth CDs yielding 4.6 across multiple banks/CUs- which will give me more time to learn...


Thanks for any advise...


Dave

 

[poyet]

47.5% commercial RE or NNN looking for properties yielding 10% before taxes to generate 240k$ of revenue (be the landlord you'll squeeze more out of your props) and 47.5% in stocks to generate max cap appreciation over the long run with 0% withdrawal rate from the portfolio. I would go for a mix of ETFs, e.g. SPY, QQQQ, or lows fees funds etc. Spread the 2.5M over several banks and brookers and keep in mind the Baring story. Eggs of 250/300k are fine and never in the same basket. Avoid bonds as they have ruined over the long term all owners. RE (will also appreciate with the rents) and stocks should fight inflation over the long term. Believe in you and only you and do your homework. Be a PT and put less than 5% in your home. You've got all chances to be dead before you run out of money if you're conservative. Even if you pay 80k taxes and 20k to upkeep props, you'll have 140k of which you'll have to save at least 80k to keep growing and 60k to enjoy your life. Your total net worth should double every ten years, minimum (7% growth).
Good luck.

 

[PJ03]

Mike, I'm somewhat in the same boat as yourself. I'm new to stock investing. So while I read and learn I placed a lump sum with my Banker, Bank America. They have a preferred service in which my account sits, they have been buying AAA State bonds which turn over every second week, for the past few months I've been making just over 3% Tax exempt and the money is deposited in my account every second week, They do not charge any fees for this service.
This I will do until I've finished reading and learning about which way to go, I'm leaning towards Index funds, I just finished reading The four pillars, its a very good read, I have a few more to read.
FYI. I got some really great advice from these guys on this board,

 

[Oliver]

Old thread but ... At some point below $5m, I would change my investments to include a very sign. allocation to the passive investments from DFA. I would hire a flat fee advisor that would give me advice and access to the funds.

Oliver

 

[PJ03]

Old thread but ...  At some point below $5m, I would change my investments to include a very sign. allocation to the passive investments from DFA.  I would hire a flat fee advisor that would give me advice and access to the funds.

Oliver

I'm really leaning in this direction, I have a adviser who will buy DFA for a small fixed fee. the rest I'll buy from Vanguard.

 

[Oliver]

Hi PJ03,

If you don't mind me asking, what sort of fees is your advisor charging?

Oliver

 

[PJ03]

Hi PJ03,

If you don't mind me asking, what sort of fees is your advisor charging?

Oliver

Hey Oliver
$1k up to $300,000.00 $2k up to 1 mil
They want $3k for $3 mil and up. I have learned that with almost very Adviser they will lower their fees, when you think about it, there is really no difference in managing 500K and 5 mil when your in passive investments using either Vanguard or DFA funds.