Hi folks, this thread does not make investing in managed funds very appealing. Very astute and incisive comments, however.
I find myself at 64, to be in a similar situation with proceeds from a company sale. At first, my thought was to put $$$ in MMA and wait for a pullback to buy big blue chips with high dividends. (You know who they are).
Then, from my past experience of 20 years of having a managed portfolio, balanced etc. And I am at about what I went in with. Currently have 50% in equities.
Then, speaking to some friends who are typical salaried white collar - they swear by annuities at 6% guaranteed with your principle never going down regardless of market conditions, but going up if the market goes up. Of course, that is at 4% cost but it comes out before the 6%. Sounds too good to be true.
I have a senior Vanguard manager, (who only deals with $2 million and up), calling me next week. They will manage your account with only a .03 on 2 Mil or a .02 on 5 Mil up fee. That's not 2%, but .02 or .03 % depending on 2 or 5 million. Still cheaper than my broker at 1% plus other fees.
I would be happy with a 6% return and not having to worry about the market. My income needs are minimal from my liquid investments as I have commercial properties that generate 6 figures annually.
So, I'm not sure what I will do, I am conservative.
I know one thing, I am not going 100% in and then have a correction occur and spend the next 20 years trying to break even.