200k New Money

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Mar 5, 2009 3:55 am

[quote=OS]Two words: lap dances



Instant pleasure, and the karma from the contribution to his community by putting several MILFs through college (this should be a write off)



[/quote]

I retract my previous statement.  Now that I’ve eaten dinner and had a beer, I’m thinking more clearly. 

Mar 5, 2009 3:55 am

Or better yet. Buy 50 percent ownership I’m a “gentleman’s club”. Set up a buy/sell policy, go fishing together, come back alone. Now you’ve doubled his money and surrounded him with hoes. You don’t have to be a rapper to like those results.

Mar 5, 2009 5:00 am

50% diversified commodities but with an oil emphasis.  50% diversified leveraged closed end funds.

Mar 5, 2009 5:01 am

or another idea if he is in a high tax bracket or expecting to be, and has beneficiaries slam him into a vul

Mar 5, 2009 5:31 am

Put him in a Lincoln ChoicePlus variable annuity. That way, he can take income before 59 1/2 using i4Life without the 10% penalty. The income is gauranteed for the rest of his life, and hopefully this market will rock over those 10 years and give him a mad fat payout.

  Oh yeah, and pray that Lincoln stays in business...
Mar 5, 2009 1:15 pm
OS:

Two words: lap dances

Instant pleasure, and the karma from the contribution to his community by putting several MILFs through college (this should be a write off)

  Ron, this is the best advice you're going to get.
Mar 5, 2009 2:27 pm

Grab a 10 year muni zero, showing right now at 60ish, so there’s 120 spent which will guarantee his original 200 back in 10 years with none of the phantom income tax mess to deal with.  Take the other 80 and build whatever you want to with it, knowing you’re bulletproof and can’t loose a penny if he holds the zero to maturity.  I’ve used this for years, and I always look like a genius when I do.  AGE used to have an actual brochure on it called “Security Plus.”  Why I didn’t do it with EVERY body, I’ll never know…

Mar 5, 2009 3:44 pm
2wheeledbeemer:

Grab a 10 year muni zero, showing right now at 60ish, so there’s 120 spent which will guarantee his original 200 back in 10 years with none of the phantom income tax mess to deal with.  Take the other 80 and build whatever you want to with it, knowing you’re bulletproof and can’t loose a penny if he holds the zero to maturity.  I’ve used this for years, and I always look like a genius when I do.  AGE used to have an actual brochure on it called “Security Plus.”  Why I didn’t do it with EVERY body, I’ll never know…

      Ahhh...the ethical, and far more tax efficient, alternative to the Equity Indexed Annuity.     But then there's that pesky commission issue.
Mar 5, 2009 3:46 pm

[quote=anonymous]If the market has a huge 50% return this year, how much has the guy lost by DCA into the market?  The right answer is only known in hindsite.  However, it seems to me that someone invests because they expect the market to go up more than it goes down.  With this being the case, DCA is more likely to hurt him than help him.  

   [/quote]   So, ice and anonymous, neither of you beleive in DCAing, or just not right now?
Mar 5, 2009 3:53 pm

I like the insurance ideas listed above. Insure his life, disability and as much retirement income as possible.  …  I might also keep 100k in short term CDs for emergency purposes, at least if it was me. I know he says his horizon is 10 years, but I’ve seen so many of my clients and prospects get laid off in the past two months without adequate reserves.

Mar 5, 2009 4:30 pm

[quote=Borker Boy][quote=anonymous]If the market has a huge 50% return this year, how much has the guy lost by DCA into the market?  The right answer is only known in hindsite.  However, it seems to me that someone invests because they expect the market to go up more than it goes down.  With this being the case, DCA is more likely to hurt him than help him.  

   [/quote]   So, ice and anonymous, neither of you beleive in DCAing, or just not right now?[/quote]   It has nothing to do with believing or not believing in DCA.  I just believe that I can't time the market and it goes up more years than it goes down.  Therefore, the best time to invest money is when the person has it.  That being said, much of what one should be doing needs to be based upon their risk tolerance and comfort level.  For that reason, it is very possible that my advice to this prospect would be to DCA the money into the market.   I'm pretty surprised at this whole thread.  I think that one of the reasons why so many brokers are struggling right now is that they set themselves up for failure by focusing on picking good investments for their clients.   Using this thread as an example, notice that people are talking about what is best for the 200K in new money.  Thus, he is getting all sorts of investment advice.   How can we have any clue as to what to do with 200K without knowing what the client wants?
Mar 5, 2009 5:34 pm

The point of the initial question, without giving an essay on his entire financial situation, was just to see what advice people are giving on new money in which the only priority is growth. The guy is well to do, home paid off, plenty in bank for emergency, no kids, no wife,  great job. I understand the questions that need to be asked. I wanted to see how many guys actually think 100% equities at Dow 7000 is a good idea. The answer is very few, which makes me even more confident in buying now.

Mar 5, 2009 5:42 pm
Ron 14:

The point of the initial question, without giving an essay on his entire financial situation, was just to see what advice people are giving on new money in which the only priority is growth. The guy is well to do, home paid off, plenty in bank for emergency, no kids, no wife,  great job. I understand the questions that need to be asked. I wanted to see how many guys actually think 100% equities at Dow 7000 is a good idea. The answer is very few, which makes me even more confident in buying now.

  Good luck if you go 100% equities.  Anymore it's all a crap shoot.  You may look good when the market rallies 20%, but it's like snow at 33 degrees...it just doesn't stick.    With the Dow in the 6000's now, we haven't even seen the effect of commercial real estate's problems yet.    I know the "market" is a forward indicator, but correct me if I'm wrong, based on "historical" P/E ratios, we aren't really that undervalued right now.   The Dow closed at 1251.52 on the day I was born.  This is nucking futs.    
Mar 5, 2009 6:01 pm

10 years from now if the broader market is still down that will be 22 years of a flat market.  I’m going to say it without doing the research but I’m not sure that happened even during The Great Depression.  So for me personally 10 year time horizon, already 12 years into this, yeah I’m going equities right now.  I might take a tad more conservative approach but I’d definately be all in within the next 2-4 months. 

Mar 5, 2009 6:40 pm
Ron 14:

The point of the initial question, without giving an essay on his entire financial situation, was just to see what advice people are giving on new money in which the only priority is growth. The guy is well to do, home paid off, plenty in bank for emergency, no kids, no wife,  great job. I understand the questions that need to be asked. I wanted to see how many guys actually think 100% equities at Dow 7000 is a good idea. The answer is very few, which makes me even more confident in buying now.

  Ron, you forget to tell us in the initial question that growth was his only priority.  Does his risk tolerance allow him to try for growth or does he need guarantees?
Mar 5, 2009 6:46 pm
Ron 14:

The point of the initial question, without giving an essay on his entire financial situation, was just to see what advice people are giving on new money in which the only priority is growth. The guy is well to do, home paid off, plenty in bank for emergency, no kids, no wife,  great job. I understand the questions that need to be asked. I wanted to see how many guys actually think 100% equities at Dow 7000 is a good idea. The answer is very few, which makes me even more confident in buying now.

  If he is interested in staying wealthy and keeping all of that money for the long haul...the best advice would be to stay single w/no kids
Mar 5, 2009 9:09 pm

I meant all in with the equity portion.  My bad!

Mar 5, 2009 9:48 pm

Coincidence?  I don’t think so. 

  I sh*t you not, I had a couple just leave my office and they had $200m and change.  Said they don't need it for 10 years but don't want to go into the market right now.  Too risky.  Then next breath talked about how he might want to start putting a little in to the market over time.      We talked about muni's as they are in an high tax bracket for some, we talked about going into a couple of index funds over the next couple of months for what they want in the market.  We talked about short term cd's for some of it.  They were curious about various etf's.     Now to combine some other threads. He believes buy and hold is dead! I gues wind3457 was right about all the 200m accounts just lying around out there.  He believes we're on our way to a Socialist state! 
Mar 5, 2009 9:52 pm

[quote=jkl1v1n6]Coincidence?  I don’t think so. 

  I sh*t you not, I had a couple just leave my office and they had $200m and change.  Said they don't need it for 10 years but don't want to go into the market right now.  Too risky.  Then next breath talked about how he might want to start putting a little in to the market over time.      We talked about muni's as they are in an high tax bracket for some, we talked about going into a couple of index funds over the next couple of months for what they want in the market.  We talked about short term cd's for some of it.  They were curious about various etf's.     Now to combine some other threads. He believes buy and hold is dead! I gues wind3457 was right about all the 200m accounts just lying around out there.  He believes we're on our way to a Socialist state!  [/quote]   For 200k, he could build himself a nice, fairly lavish bunker, lots of beans and rice, and acquire an extensive arsenal of weapons and ammo.   When did the Mayans predict the world would end?
Mar 5, 2009 10:42 pm

I’ve done that before not muni’s but some corps and like 2wheelbeemer said it worked out well.  Client was happy.  It’s a good idea, we hadn’t decided on anything yet, he wants to think about it, this is where wind3457’s lie gets blown up, but I’m going to call my bond desk and find out what’s available and see if he’d be interested. 

  Thanks again Ice and Beemer