900k in cash, where would you invest

[Markola]

Park your money in money market funds and don't do a thing until after the election in Nov 2020.

Umm, what do you do then? An election is going to tell you your risk tolerance, asset allocation, which way stocks will go, which way bonds will go....?

 

[Backdraft57]

Pssssssssssssstttttt
Wellesley

 

[indiajust]

Set aside at least $50k for the hookers and blow while you put together a (cough) plan.

How about the local Peruvian Coke bottler? Turkey too. There are dozens of listed international Coke bottlers.

I like a mix of Brexit hammered UK stocks, SE Asia and Russian dividend payers, Israeli software, Norwegian escalators, US Biotech, International fintech, Mexican Airports, Canadian mining, and some beaten down energy and nuclear. C'mon live a little. 50 individual positions, lump some cruel risk with some neurotic value together in the same sector.

 

[Beachcomber]

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.

 

[pb4uski]

....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. ....

If your friends think their annuities are guaranteed at 6% but going up if the market goes up then they are delusional.... no such animal.

It is too good to be true... they just haven't figured it out yet.

 

[SeanPizzle]

Thanks all for the insights. I assure you, no troll here. Yes, I made a crack about hookers and blow, but it's really making levity about my inexperience and uncertainty about investing. My 401k and IRA accounts have sucked at growing over last 20 years, but still have decent amount. I live in CA and real estate is so overblown that owning rental properties will get a 3.5 to 4 percent cap rate. At that rate, it's not even worth the headache to be a landlord, even with some tax depreciation. Heck, part of my wants to go old school and open a lube and brake shop and pay a manager (I'm a total gear head). I make a very good living selling IT gear and have a generous options plan vesting fully in 2022. I have learned how to make money, but have sucked at learning how to make money passively.

Thanks again

 

[morriss003]

Umm, what do you do then? An election is going to tell you your risk tolerance, asset allocation, which way stocks will go, which way bonds will go....?

There is no telling at this point, but when the election has passed businesses will a better idea of what government policy is likely to be. If Trump is reelected investments will go one way. If someone else is elected, different investments might be warranted.

 

[Markola]

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.

Talk to the Vanguard guy. DW and I have seven figures invested with Vanguard Flagship and we are very happy to pay the relatively modest fees in exchange for all of our advisor’s expertise, Vanguard’s massive financial software investment to model future safe withdrawals, which they call Dynamic Spending and, best of all, having DW and I on the same page about our finances with a knowledgeable, neutral expert to talk with. Once he got our asset allocation right for us at a moderate 50/50, invested in a globally-diverse portfolio of index funds, I don’t worry about the markets so much. I feel we’re as prepared as we can be for whatever comes and minding the markets are his and Vanguard’s job now ;-). No one can predict the markets but Vanguard projects more than 6% for our portfolio over the long term.

If you’re still interested in annuities, you might google the Retirement Answer Man show from this summer, in which he dedicated a month to examining annuities. He’s an experienced financial planner and he gave them a fair shake over several episodes but, in the end, decided, meh, they are just far too complicated, high fee and ill-liquid. Good luck.

 

[REWahoo]

Umm, what do you do then? An election is going to tell you your risk tolerance, asset allocation, which way stocks will go, which way bonds will go....?

There is no telling at this point...

Exactly. So why try to time the market by waiting for the election to pass?

 

[gooddog]

If you don't want to think about it, do a Schwab intelligent portfolio that is based off of a series of questions that determines your risk tolerance.

 

[L Carlisle]

We are still about 6 years out on retiring (based on DD college schedule). I have about 900k in cash that I have been waiting to invest. I think the market will correct I'm both equities and housing in the next 18 months.

Would you sit and wait for buying opportunities, get some CDs, or invest in hookers and blow?

I vote for "Hookers and Blow"