So you have $1,000,000....

**Dromond** · 09-09-2009, 12:52 PM

Originally Posted by Benny Profane

If you can't stand the heat............

You win. So manly!

**skiwithcharlie** · 09-09-2009, 12:57 PM

Wait till the market crashes again this fall-winter and invest 66% stocks, 33% real estate!

**GBB** · 09-09-2009, 01:33 PM

So for now I think I'm going to go with about 40%-50% in indexes (divided between the small cap fund and an s&p 500 index fund), 30% in individual stocks, with the rest coming in bonds. Going to try to stay out of the futures and commodity markets for now.

**Brock Landers** · 09-09-2009, 01:59 PM

how much is in indexes? 40-50 and 30?

**GBB** · 09-09-2009, 02:04 PM

30%. I should really start proofreading.

**Brock Landers** · 09-09-2009, 02:12 PM

sounds pretty good if you have a read on the stocks you are playing in

**Kevo** · 09-09-2009, 07:46 PM

Brock- what would you suggest as an alternative to target funds?

Buying indexes and bonds on your own so that you can control your own destiny so to speak in terms of what percentage is in stocks, bonds, etc and have the ability to shift it around in changing market conditions?

I just don't see that it is a good idea to "diversify" by buying a few stocks in banking, a few tech, a few real estate, etc. For me, indexing seems to be the way to go if I'm going to be in stocks at all.

Feel free to talk me out of .02% fees if you have a better alternative.

**leroy jenkins** · 09-09-2009, 08:39 PM

Semi relevant to this thread, but the other day I walked up to an ATM in Aspen to get some cash, and here this guy and his wife having a little debate about whether or not she really needed more money. He was wondering how she could spend 30K a month! She just kept answering "30 things that cost a grand each".

Jesus, if I was MAKING 30k a month I'd feel like I had it made. She was old and fat too, and I bet she didn't even cook.

**Scotsman50** · 09-09-2009, 09:02 PM

Originally Posted by leroy jenkins

Put 100k in a savings account, probably spend about 20k of it on toys trips whatever, use the remaining 80k to help pay expenses when times get tight, but still live thrifty, that should last me for ten or fifteen years at lea.

100k +20K +80K= 200K
I ain't taking any financial advice from anybody that cant do arithmetic.

**Huckin eh?** · 09-09-2009, 09:09 PM

Originally Posted by leroy jenkins

Jesus, if I was MAKING 30k a month I'd feel like I had it made. She was old and fat too, and I bet she didn't even cook.

He would have had it made if he had invested in hookers and blow instead of that ball and chain! Thats an investment with diminishing returns if I ever heard one!

**Brock Landers** · 09-09-2009, 09:21 PM

Originally Posted by Kevo

Brock- what would you suggest as an alternative to target funds?

Buying indexes and bonds on your own so that you can control your own destiny so to speak in terms of what percentage is in stocks, bonds, etc and have the ability to shift it around in changing market conditions?

I just don't see that it is a good idea to "diversify" by buying a few stocks in banking, a few tech, a few real estate, etc. For me, indexing seems to be the way to go if I'm going to be in stocks at all.

Feel free to talk me out of .02% fees if you have a better alternative.

Go with more of a risk-based allocation fund. Generally you can pick the one you want depending on your risk aversion and time horizon (period until you need the money). If youre 25 years from retirement, go more aggressive, 0 -15% in bonds. And of those bonds, some high yield/bank loans/etc. You can get funds that do all of it.

And if you want to do the investing on your own...indexes are fine. If you dont really know the details about a company or stock...Id stay away. Get into an index, not even necessarily sector-specific (like a financials index, tech index,etc). Russell 1000 index may be a good large cap index to use. Youd want some mid cap and small cap as well, also exposure to foreign stocks (especially emerging markets...especially now). Bonds would bein there too. The allocations to each depend on your risk level and age though.

If youre 30 years old, stick 5% in a core bond fund, 5% in high yield. 45% large cap index. 20% Mid Cap index. 15%small cap. 12% international stock (MSCI EAFE Index) and 8% in emerging markets. Somethinglike that. Itll be cheap too-relatively.

**woodstocksez** · 09-09-2009, 09:30 PM

Originally Posted by Benny Profane

Or paying attention and didn't get screwed by believing autopilot would work while paying these people a fee to lose their money.

But I heard my TV telling me last week I should have my age in stocks in my portfolio, after all that has happened. Some people never learn.

You obviously weren't paying attention to your TV because no one gives that advice. Your age in bonds/cash (or 100-age in stocks), yes. Your age in stocks, no. The latter doesn't make sense.

**woodstocksez** · 09-09-2009, 09:36 PM

Originally Posted by Brock Landers

Target rate funds are the biggest crock of shit in the investing business. Or at least in the discussion. Target Rate 2010 had like 40% in stocks at the time of the crash.

I don't think there's anything fundamentally wrong with the concept, just the current embodiment of it. Most (all?) target date funds were (are?) more heavily allocated to stocks than I think most people would anticipate. That's the problem, not the approach of automatically allocating among asset classes with a progressively more conservative allocation over time.

**GBB** · 09-09-2009, 10:05 PM

Originally Posted by leroy jenkins

Jesus, if I was MAKING 30k a month I'd feel like I had it made. She was old and fat too, and I bet she didn't even cook.

Probably doesn't put out either.

**Kevo** · 09-09-2009, 10:12 PM

See- my issue is with picking stocks in general. The conventional wisdom is that knowing a company/industry well allows one to perform valuations and find companies that are undervalued in the market. This is no longer relevant in the time of hedge funds/institutional investors. With enough money, a group of people can seriously manipulate the market to their own desires. Stocks that should be stable can be run into the ground in a relatively short period of time.

I don't understand why someone would think that they can successfully pick stocks again and again.

**peck257** · 09-09-2009, 10:28 PM

take 110-your age; that is how much should be in stocks--the rest in bonds--i would recommend a diversified portfolio with an emphasis on high dividend paying stocks. would have been ideal to get in march

**sftc** · 09-09-2009, 10:49 PM

Originally Posted by givebackbloom

So let's mix things up a bit.

What would be your strategy if you were trying to get the highest possible returns in 3 months?

Go to Mendocino County and start buying large quantities of, umm, "stuff." It's harvest time up in dem der hills!

**Tye 1on** · 09-09-2009, 10:54 PM

If i had a million dollars, i'd............................................... ...be rich..............

**leroy jenkins** · 09-09-2009, 11:21 PM

Originally Posted by Scotsman50

100k +20K +80K= 200K
I ain't taking any financial advice from anybody that cant do arithmetic.

No, 80+20=100.

You can spend money thats in a savinging sacount. A savings acount is a better place to keep money that you'll only us ein emergencies than a checking acounts.

I paid nine dollars for a grey goose and oj tonight.

Thats how not to invest your mones.

**Benny Profane** · 09-10-2009, 04:37 AM

Originally Posted by woodstocksez

You obviously weren't paying attention to your TV because no one gives that advice. Your age in bonds/cash (or 100-age in stocks), yes. Your age in stocks, no. The latter doesn't make sense.

Yeah, you're right, I reversed it. It should be age in cash/bonds.

**farmer** · 09-10-2009, 08:27 AM

Originally Posted by focus

That's it? If you had a million dollars, you'd do two chicks at the same time?

are you saying you wouldn't?

**mnflyfish** · 09-10-2009, 11:33 AM

If I only had 3 months? I'd play the horses. If I had longer, I'd buy up some real nice high-end classic cars that people are trying to dump to pay their mortgage and sit on them. Do a little mait and fix the things that need fixing, then sell them next summer when the market recovers. If it doesn't recover, I'd have cars I could fix myself for transportation away from the Mad Max characters that will be roaming the streets.

**snoweater** · 09-10-2009, 12:54 PM

Apparently none of you are paying attention to your TV.

Hookers n blow - check
great returns - check

**Brock Landers** · 09-10-2009, 10:54 PM

Originally Posted by Kevo

See- my issue is with picking stocks in general. The conventional wisdom is that knowing a company/industry well allows one to perform valuations and find companies that are undervalued in the market. This is no longer relevant in the time of hedge funds/institutional investors. With enough money, a group of people can seriously manipulate the market to their own desires. Stocks that should be stable can be run into the ground in a relatively short period of time.

I don't understand why someone would think that they can successfully pick stocks again and again.

Totally true. Its different in different areas though. Large cap has everyone looking at it, securities are pretty fairly priced. I think its tough to find stocks to buy. The analysts looking at the details have varying opinions, but in general large cap is a bit more condusive to passive management in general. Areas like emergingmarkets and small cap have areas that arent as well covered and there are opportunities to exploit price disparities. Of course its a little more expensive to buy a quality EMmanager.

Tough to manipulate markets like that with little to no borrowing now...silver lining???