If you had 1 million dollars....

Hi Everyone,

If you had 1m with no possibility of future income at all from employment, how would you allocate it and why?

Would really appreciate any input as I am at a loss as to how to allocate my portfolio when there seems to be so little investments with a margin of safety now but yet the cost of waiting (i.e. inflation & opportunity cost due to rising market) is so high.

Thanks in advance (:

David,
This is what I will do/am doing:
1. soul searching to see what type of investor I am.

2. buy insurance because I have dependence and pre-empt medical needs.

3. set aside emergency funds/living expense for 6 months

4. Aggressively trade with tikam money

5. Conservatively and patiently buy with rest of money. PATIENT is the key word.
eg. buy SQ only when it dip below 9:50? you got my point.

天天快乐。






A Life not Reflected is a Life not Worth Living.

I think it will help if you crystallize your investment objectives. For example, you can decide what is the minimum return you require and how much cash flow do you need from the investment. All these factors will help narrow your options for asset allocation. Each of us will have different portfolio performance requirements and therefore different portfolio composition.

I think it's important to remember that we don't have to beat the market, we just have to achieve our own investment objectives without taking unnecessary risks.

ok!

1) Buy insurance to cover H&S.
2) Don't work, spend the $ happily!!

Hi davidsim,

I do think you had asked a similar question in the thread below, and get some reasonable advice in the thread.

http://www.valuebuddies.com/thread-3247.html

(06-11-2013, 07:56 PM)Clement Wrote: I think it will help if you crystallize your investment objectives. For example, you can decide what is the minimum return you require and how much cash flow do you need from the investment. All these factors will help narrow your options for asset allocation. Each of us will have different portfolio performance requirements and therefore different portfolio composition.

I think it's important to remember that we don't have to beat the market, we just have to achieve our own investment objectives without taking unnecessary risks.

Hmm lets say my investment objective is just to maintain an annual income of $35000 in today's dollars for as long as I live (I am 65 now) while trying to preserve the principal as much as possible.

Would anyone advocate a place everything into REITs/bonds and just enjoy the income while saving the surplus to enther when opportunity comes strategy given my main goal is actually income and any capital gain is merely a bonus?

I have already bought H&S insurance but thank you very much for that suggestion. I think adequate insurance is the backbone of any financial plan.

50% equities (ownself pick if not buy the STI etf, its now at about PE 13 still decent but not cheap, yield is around 3%)
50% SGS bonds (30 year bonds could fetch u about 3% yield)

overall the yield is quite low at 3% but the risk level for such a simple portfolio consisting of only
sti etf and sgs bonds is very low I would say~

given the super low interest rate environment, ya its damn hard to invest our $$ well

3% at 1 mil should give u about 30k a year or 2.5k+ a month, should be good enough for retirement if you dun travel too much or spend big ^^

(06-11-2013, 08:45 PM)davidsim Wrote:

(06-11-2013, 07:56 PM)Clement Wrote: I think it will help if you crystallize your investment objectives. For example, you can decide what is the minimum return you require and how much cash flow do you need from the investment. All these factors will help narrow your options for asset allocation. Each of us will have different portfolio performance requirements and therefore different portfolio composition.

I think it's important to remember that we don't have to beat the market, we just have to achieve our own investment objectives without taking unnecessary risks.

Hmm lets say my investment objective is just to maintain an annual income of $35000 in today's dollars for as long as I live (I am 65 now) while trying to preserve the principal as much as possible.

Would anyone advocate a place everything into REITs/bonds and just enjoy the income while saving the surplus to enther when opportunity comes strategy given my main goal is actually income and any capital gain is merely a bonus?

I have already bought H&S insurance but thank you very much for that suggestion. I think adequate insurance is the backbone of any financial plan.

You were just 57 around 6mths ago! And is having a passive income of at least $11700 a month!

http://www.valuebuddies.com/thread-3247-...l#pid48963

http://www.valuebuddies.com/thread-3247-...l#pid48909

I will do this.

25% placed in PS of our 3 banks
20% for a small apartment (maybe rent out)
15% emergency in FD
40% Equity of which 33% Blue like Telcos, 33% Reits, 33% others including gold spdr, index etc

R U stockerman or underdogger? Recently quite number of retirees nothing much to do, spent time creating dual personalities.