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What would you do.
Old 04-05-2006, 08:43 AM   #1
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What would you do.

What would you do with this scenario. Your 62 yrs old no dept, house paid for, approx. 1 million in portfolio. How would you invest this for retirement. Be specific ie what would own, and what % for each asset class.
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Re: What would you do.
Old 04-05-2006, 09:03 AM   #2
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Re: What would you do.

100% GMAC bonds
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Re: What would you do.
Old 04-05-2006, 09:07 AM   #3
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Re: What would you do.

Think about Vanguard Target Retirement Funds.

Maybe 50% Target Retirement 2005 plus 50% Target Retirement 2015
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Re: What would you do.
Old 04-05-2006, 09:20 AM   #4
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Re: What would you do.

I'd go to the Indianola Savings and Loan, slap that money on the table and buy the farm back from those foreclosin' sunsabitches...
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Re: What would you do.
Old 04-05-2006, 09:29 AM   #5
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Re: What would you do.

Quote:
Originally Posted by Talyho
What would you do with this scenario. Your 62 yrs old no dept, house paid for, approx. 1 million in portfolio. How would you invest this for retirement. Be specific ie what would own, and what % for each asset class.
ING direct, 3.8%= 38,000/yr. That should suffice.
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Re: What would you do.
Old 04-05-2006, 09:31 AM   #6
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Re: What would you do.

Until inflation eats you alive.
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Re: What would you do.
Old 04-05-2006, 10:03 AM   #7
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Re: What would you do.

5% in Emigrant Direct savings account yielding 4.5%

20% in Vanguard Equity Income Fund Investor Shares (VEIPX) yielding 2.8%

75% in Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) yielding 3.8% tax-free

Should give you about $35k/year in after-tax money.

Or just put 100% in Vanguard Wellesley Income Fund Investor Shares (VWINX) and be done with it.
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Re: What would you do.
Old 04-05-2006, 10:08 AM   #8
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Re: What would you do.

Quote:
Originally Posted by Talyho
What would you do with this scenario. Your 62 yrs old no dept, house paid for, approx. 1 million in portfolio. How would you invest this for retirement. Be specific ie what would own, and what % for each asset class.
Talyho,

A good answer to your question would require alot more information, such as:

What are your annual living expenses?
What is your situation regarding health insurance?
Do you have long term care insurance?
What life expectancy do you want to plan for?
Do you want to leave money to anyone? a charity?
What is your risk tolerance? What kind of allocation will let you sleep soundly?

I think the answers you have gotten so far border on the irresponsible since they are based on inadequate information. Any financial advisor who recommeded an allocation and specific investments based on what you have said so far would not be serving you well. The same can be said of the folks here who offer advice too casually. (I'm sure the flaming will start as soon as I post this).

Grumpy
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Re: What would you do.
Old 04-05-2006, 10:12 AM   #9
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Re: What would you do.

Quote:
Originally Posted by soupcxan

75% in Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) yielding 3.8% tax-free
Soupcxan,

How can you possibly recommend a tax-exempt fund without knowing what Talyho's tax bracket is? You don't even know how much of his $1M portfolio is in tax deferred accounts!

Talyho,

I strongly recommend that you take the advice here with several grains of salt!

Grumpy
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Re: What would you do.
Old 04-05-2006, 10:22 AM   #10
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Re: What would you do.

C'mon grumpy, OP asked what WE would do in a given situation, not what we think HE should do. And I like to think my suggestion is universally applicable.
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Re: What would you do.
Old 04-05-2006, 12:14 PM   #11
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Re: What would you do.

Quote:
Originally Posted by Talyho
What would you do with this scenario. Your 62 yrs old no dept, house paid for, approx. 1 million in portfolio. How would you invest this for retirement. Be specific ie what would own, and what % for each asset class.
Welcome to the board, Talyho. I think.

The best answer to your question, with the info you've provided, is "It depends."

Every investor is different and their situations are also different. In your inaugural post you've provided the scantiest of information and more or less demanded a "specific" financial plan. Right now your query is being greeted with all the excited anticipation of today's high-school seniors receiving a pop quiz in springtime.

If you really want detailed advice then you'll need to provide more details on your desired risk (volatility) tolerance & expenses. That devolves into a discussion about other income (employment, pension, Social Security), other assets (rental property), other expenses (budget, capital expenses) and the support needs of others (spouse, kid, relatives). It's a long conversation that can take many posts to sort out. Even then, the advice is worth what you pay for it...
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Re: What would you do.
Old 04-05-2006, 12:58 PM   #12
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Re: What would you do.

Yawn

Age 62 - 13th yr of ER

1 mil: 75% Target Retirement 2015
14% Dividend Stocks - utilities, oils, banks, REITs, Drugs, etc - screaming spec stocks like Con Ed, National Fuel Gas, Exxon, Bank of America, New Plan Reality, Eli Lilly, etc
7% Lifestrategy mod in Roth.
4% Vg Prime MM

Just a wild and crazy guy. Toss in early SS and a non cola pension, minus the Roth - going to struggle along this yr on maybe 75k before taxes (triple pre Katrina) if I have the nerve to take out 5% without getting a nosebleed.

heh heh heh heh - early 90's - my personnel best was a 12k/budget - come a looong way from cheap bastard. Boy it was fun while it lasted. All praise be to the market of the 90's.
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Re: What would you do.
Old 04-05-2006, 03:40 PM   #13
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Re: What would you do.

Quote:
Originally Posted by grumpy
How can you possibly recommend a tax-exempt fund without knowing what Talyho's tax bracket is?* You don't even know how much of his $1M portfolio is in tax deferred accounts!
My advice here is worth what the OP paid for it...and based on the extremely limited info he provided. Like brewer said, it's what I would do with the money in that situation...why aren't you giving the guy who recommended 100% GMAC bonds a hard time?
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Re: What would you do.
Old 04-05-2006, 04:13 PM   #14
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Re: What would you do.

Worth what you paid for it:

25% US STOCK
5% Total US Market (VTI)
5% Midcap Value (IJJ)
5% Smallcap Blend (IWM)
5% Smallcap Value (IJS)
5% Microcap (BRSIX)

25% FOREIGN STOCK
5% Developed Markets (EFA)
5% Pacific Exc Japan (I use EPP + MAPTX, but wish I had better solution)
5% Emerging markets (EEM)
5% Foreign small blend (VINEX, FSCOX)
5% Foreign small value (TBGVX, ARTKX)

20% REAL ASSETS
5% US REITs (ICF, RWR)
5% Foreign REITs (IGR, EGLRX)
5% Energy (VDE)
5% Precious Metals (VGPMX)

30% FIXED INCOME
25% = Bonds and/or CDs
5% = Money market accounts
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