How to invest 1.2 Million for ER?

[wcv56]

Keith good question, out of 5,000 or so hedge funds wonder
why Bear Stearns is having problems on one of their hedge funds.
Have you noticed any mutual funds having problems recently.
No news on mutual fund problems because it is a regular occurence I guess.

Retiring Early you need downside risk as most if not all our money will need
to be invested to keep the income coming in until the pensions or social security kicks in. Also we will need to maintain a living standard that is
acceptable to the same as it was in the working years.

I am only concerned with Retire early commonalities we will all face.
55 and beyond is not really retiring early anymore. With many not getting any type of pension like myself it is important to use what tools are in the shed. I can afford to have some years of small or no return on investment but a period of down years would really put me back to work ( aint no medical benefits free anymore for most unless you can get medicare/caid).

Here is some decent reading on hedge fund investments
About Hedge Funds - Advantages of Hedge Funds over Mutual Funds

 

[chinaco]

Here is some decent reading on hedge fund investments
About Hedge Funds - Advantages of Hedge Funds over Mutual Funds

 

[wcv56]

Wednesday, October 3, 2007
CRAIG's LIST- How can I find a rich husband?... and response
THIS APPEARED ON CRAIG'S LIST - must read down to the reply...What am I doing wrong?Okay, I'm tired of beating around the bush. I'm a beautiful(spectacularly beautiful) 25 year old girl. I'm articulate and classy.I'm not from New York. I'm looking to get married to a guy who makes atleast half a million a year. I know how that sounds, but keep in mindthat a million a year is middle class in New York City, so I don't thinkI'm overreaching at all.Are there any guys who make 500K or more on this board? Any wives? Couldyou send me some tips? I dated a business man who makes average around200 - 250. But that's where I seem to hit a ro adblock. 250,000 won't getme to central park west. I know a woman in my yoga class who was marriedto an investment banker and lives in Tribeca, and she's not as pretty asI am, nor is she a great genius. So what is she doing righ t? How do Iget to her level?Here are my questions specifically:- Where do you single rich men hang out? Give me specifics- bars,restaurants, gyms-What are you looking for in a mate? Be honest guys, you won't hurt myfeelings-Is there an age range I should be targeting (I'm 25)?- Why are som e of the women living lavish lifestyles on the upper eastside so plain? I've seen really 'plain jane' boring types who havenothing to offer married to incredibly wealthy guys. I've seen drop deadgorgeous girls in singles bars in the east village. What's the storythere?- Jobs I should look out for? Everyone knows - lawyer, investmentbanker, doctor. How much do those guys really make? And where do theyhang out? Where do the hedge fund guys hang out?- How you decide marriage vs. just a girlfriend? I am looking forMARRIAGE ONLYPlease hold your insults - I'm putting myself out there in an honestway. Most beautiful women are superficial; at least I'm being up frontabout it. I wouldn't be searching for these kind of guys if I wasn'table to match them - in looks, culture, sophistication, and keeping anice home and hearth.[FONT=Ti
mes New Roman][/FONT]it's NOT ok to contact this poster with services or other commercialinterestsPostingID: 432279810[FONT=Tim
es New Roman][/FONT]THE ANSWERDear Pers-431649184:I read your posting with great interest and have thought meaningfully[FONT=Ti
mes New Roman][/FONT]about your dilemma. I offer the following analysis of your predicament.Firstly, I'm not wasting your time, I qualify as a guy who fits yourbill; that is I make more than $500K per year. That said here's how Isee it.Your offer, from the prospective of a guy like me, is plain and simple acrappy business deal. Here's why. Cutting through all the BS., what yousuggest is a simple trade: you bring your looks to the party and I bringmy money. Fine, simple. But here's the rub, your looks will fade and mymoney will likely continue into perpetuity...in fact, it is very likelythat my income increases but it is an absolute certainty that you won'tbe getting any more beautiful!So, in economic terms you are a depreciating asset and I am an earningasset. Not only are you a depreciating asset, your depreciationaccelerates! Let me explain, you're 25 now and will likely stay prettyhot for the next 5 years, but less so each year. Then t he fade begins inearnest. By 35 stick a fork in you!So in Wall Street terms, we would call you a trading position, not a buyand hold...hence the rub...marriage. It doesn't make good business senseto "buy you" (which is what you're asking) so I'd rather lease. In caseyou think I'm being cruel, I would say the following. If my money wereto go away, so would you, so when your beauty fades I need an out. It'sas simple as that. So a deal that makes sense is dating, not marriage.Separately, I was taught early in my career about efficient markets. So,I wonder why a girl as "articulate, classy and spectacularly beautiful"as you has been unable to find your sugar daddy. I find it hard tobelieve that if you are as gorgeous as you say you are that the $500Khasn't found you, if not only for a tryout.By the way, you could always find a way to make your own money and thenwe wouldn't need to have this difficult conversation.With all that said, I must say you're going about it the right way.Classic "pump and dump."I hope this is helpful, and if you want to enter into some sort oflease, let me know.Posted by The Sly Fox

 

[Milton]

'Sly Fox' makes some good points!

 

[FinanceDude]

(Fund ) is the cap pig returns! ( I bought it as he seems to be a great down market investor).

The list is in order of the returns top to bottom

Johnathan Hoenig was the keynote speaker at my firm's national meeting in May 2001. He came on stage dancing to Aerosmith, he seems a little eccentric.

I think I remember he told us he was holding a bunch of gold, international currencies, and a few Canadien oil stocks. If that was true, he would have done ok. I think they are based out of Chicago..............

 

[brewer12345]

I wonder why Bear Sterns is having trouble with their hedge funds?

Because the funds in question were leveraged to the moon.

 

[FinanceDude]

I completely disagree with you and your investing experience seems to be lacking at best. I spend several hours a week reading on investing and have learned through years of experience that there is professionals that are much better than myself or the common person who thinks they know something on these message boards.

This is NOT the average investment board........

Did you know there has been more investors money lost in the common mutual fund business than hedge funds by a long way ( $100 to 1. For every good mutual fund there is many poor performance ones and few mutual funds out perform their bench mark. So why don't we all just buy the indexs and go on auto pilot. Yes that is right lets all keep our money fully invested (which most mutual funds have to) during bad times.

I cannot believe people on a early retirement board does not have more knowledge than what I am seeing so far.
Oh I know lets all travel to cheap foreign countries, take some pics and tell stories of how cheap we can live in timbuktoo and where is the next frontier.

Ok, that was pretty funny.........

I want my managers to be as good in bad markets as
good markets and minimize risk with options, shorts
and other tools available in todays markets.

Some of us on here fo that already.........

You are not showing yourself to be a very competent
investor and wouldn't know if anyone else was either.
Best you just buy Berkshire (BRK-B). Thinking that anything other than what granny would do be naive and a fool is just showing your ignorance

You're not the only millionaire on here...........

A loss takes twice as much to make up for it.

And the choir goes to lunch..........O0

 

[wcv56]

The $ makes todays million like 700K from just a few years ago.

A million is quite common now days and has been that way since
the new centry. A good many that only own a house in Calif are
one. With actual inflation around 13% now you might have to be a multi to retire at 55 soon. Now days as common as a person
10 years ago making 100K a year no bragging rights on it that is for sure. Having that much invested is quite a bit better though
or could be. I would assume most in their mid 40's and beyond thing of early retirement to be one, plenty in the U.S. for sure.
Report: Number of U.S. millionaires reaches record - Mar. 29, 2006

 

[brewer12345]

The $ makes todays million like 700K from just a few years ago.

A million is quite common now days and has been that way since
the new centry. A good many that only own a house in Calif are
one. With actual inflation around 13% now you might have to be a multi to retire at 55 soon. Now days as common as a person
10 years ago making 100K a year no bragging rights on it that is for sure. Having that much invested is quite a bit better though
or could be. I would assume most in their mid 40's and beyond thing of early retirement to be one, plenty in the U.S. for sure.
Report: Number of U.S. millionaires reaches record - Mar. 29, 2006

What is the point of your post?

 

[FinanceDude]

A million is quite common now days and has been that way since
the new centry. A good many that only own a house in Calif are
one. With actual inflation around 13% now you might have to be a multi to retire at 55 soon. Now days as common as a person
10 years ago making 100K a year no bragging rights on it that is for sure. Having that much invested is quite a bit better though
or could be. I would assume most in their mid 40's and beyond thing of early retirement to be one, plenty in the U.S. for sure.

I disagree, but it depends on the bills you have to pay. If you have no debt, and live in the average American city, I don't see why two people with grown kids can't live on $5000 a month in retirement, or even less.

It's not like those folks are going to buy a new car every year or take a world cruise........

 

[FinanceDude]

Because the funds in question were leveraged to the moon.

Actually, I heard they leveraged the entire Milky Way galaxy.............

 

[brewer12345]

Actually, I heard they leveraged the entire Milky Way galaxy.............

Therein lies the problem: without regulation and transparency, how would anyone know for sure? As much as I think that the hedge fund world does tend to attract the best and the brightest in the asset management world, if you are a retail investor you are at a significant disadvantage in playing with these funds.

 

[FinanceDude]

Therein lies the problem: without regulation and transparency, how would anyone know for sure? As much as I think that the hedge fund world does tend to attract the best and the brightest in the asset management world, if you are a retail investor you are at a significant disadvantage in playing with these funds.

Jeff Vinik did pretty well with his:

Jeffrey Vinik to shut fund - Oct. 26, 2000

 

[wcv56]

( quote)
Risk tolerance: Not big risk takers. Looking to keep stock exposure to minimum. Thinking 30-35% in various funds should do the job. We would like the other 65% in safer investments. Bonds, cd's, bond funds, income funds, whatever! He would also like to leave
a good bit beyond when he departs so that would mean living off
what he earns from investments for the most part. It's only been a few months that Bonuses in the business were given for intitutions with some clerical & secritaries getting 100K+ freebies.
************************************************

Going with what the origial poster was requesting.
I would look at the 30 - 35% being put into hedge funds
whose investment style and managers he studies and finds
to his liking. I gave him information and some reasons that
fit his investing credentials. Criticism, lucky it is cheap or guess we would be paying for some of the free info posted here.

Myself I trust the hedge fund managers I use more than I do
the dollar or institutional managed investments that have no skin
in the game. I hope to live off earnings of my investments until
I am at least sniffing social security ( 60+).

No debt been helping my folks with funds for 20 years to
include buying them a little retirement house in Florida.
I just bought another place where I will move the folks
and get them out of harms way ( their not mobile enough
for the storms anymore). I will not break even on what I put into
their house but that is small potatoes.

Raised 2 children on my own for several years ( 2 & 8 yo) and got
to where I am at today by being a common laborer with no degrees. I am coming from humble beginings working since 14.

I only hope to have 60K a year to live on and see some of the world also. Maybe reward my brother who does not have alot
who helps the folks out quite a bit.

Sure some can come up with a few investments they like and
deem to be safe enough for the ER board. I gave a couple ideas
anyways.

Was doing some mails with Hoenig Thursday morn 4:15 am
he was up trading currencies NZ and Polish Poloty.
http://www.smartmoney.com/tradecraft/index.cfm?story=20071015