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04-05-2006, 07:43 AM
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#1
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Confused about dryer sheets
Join Date: Mar 2006
Posts: 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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04-05-2006, 08:03 AM
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#2
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 784
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Re: What would you do.
100% GMAC bonds
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04-05-2006, 08:07 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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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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04-05-2006, 08:20 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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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...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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04-05-2006, 08:29 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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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.
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ING direct, 3.8%= 38,000/yr. That should suffice.
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04-05-2006, 08:31 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: What would you do.
Until inflation eats you alive.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-05-2006, 09:03 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
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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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04-05-2006, 09:08 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,321
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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.
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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
__________________
...you can check out any time you like, but you can never leave...
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04-05-2006, 09:12 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,321
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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
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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
__________________
...you can check out any time you like, but you can never leave...
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04-05-2006, 09:22 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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04-05-2006, 11:14 AM
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#11
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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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.
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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...
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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04-05-2006, 11:58 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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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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04-05-2006, 02:40 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
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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!
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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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04-05-2006, 03:13 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Aug 2005
Posts: 1,375
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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
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
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