Hypothetical investment question
40 RepliesJump to last post
If you had $100,000 dollars of your own money, how would you invest it?
3 yrs ago, I would have put it in American Funds Europacific,
Now, if I had it I would probably put 50k in Europacific and NVS. I
have a pretty high risk tolerance. Its different of course when its not
your money. In 2000, I made 17k in 6months, which might be peanuts to
some of you’ll, but it was off an initial 3k investment and I lost it
all in a matter of weeks. I was still in high school, so its ok. I
sometimes think about what it would be worth now, but thats just no fun.
I just thought about this, if I was an established broker and a big dog
out there like some of you, I would get the new 911 turbo I have been
lusting after for a while now. It’s the fastest production porsche yet.
With 480hp its just sick. On second thought, I would probably get the
carrera s cabriolet, its under 100k. With the turbo I would have to
come up with another 30k.
The reason I asked this question is because I’m curious to see what some of you would actually do with your own money, as opposed to a clients money (and why).
[quote=Slim2None]The reason I asked this question is because I’m curious to see what some of you would actually do with your own money, as opposed to a clients money (and why).
[/quote]<br>
Your original question doesn’t provide enough details to be able to give an answer. For example, what percentage of the person’s net worth does the $100k represent? What percentage of the person’s liquid assets does the $100k represent? How old is the person? Is the person employed? Etc., etc.
You’re not comparing apples with apples when you make the simple statement "I’m curious to see what some of you would actually do with your own money, as opposed to a clients money (and why)."
Each client has a different situation, just as each advisor has a different situation.
Since I consider myself about 10 years to retirement and assuming it was a windfall, I would probably put it into:
50% growth and income fund
20% international growth and income
the rest in various international indexed ETFs and closed end Reit Funds and use some stop loss orders and puts depending on how I felt the index(s) was(were) going to move.
More agressive than I would usually recommend for someone in my age bracket.
[quote=mktsystms]
[quote=Slim2None]The reason I asked this question is because I’m curious to see what some of you would actually do with your own money, as opposed to a clients money (and why).
[/quote]<br>
Your original question doesn’t provide enough details to be able to give an answer. For example, what percentage of the person’s net worth does the $100k represent? What percentage of the person’s liquid assets does the $100k represent? How old is the person? Is the person employed? Etc., etc.
You’re not comparing apples with apples when you make the simple statement "I’m curious to see what some of you would actually do with your own money, as opposed to a clients money (and why)."
Each client has a different situation, just as each advisor has a different situation.
[/quote]
The priority is income, not building wealth.
A second question:
How much time do you think you would need- WITH LIMITED RISK- to turn $300,000 into 1 million dollars, and how would you go about doing that? Thanks.
[quote=Slim2None]A second question:
How much time do you think you would need- WITH LIMITED RISK- to turn $300,000 into 1 million dollars, and how would you go about doing that? Thanks.
[/quote]
This is an unaswerable question. There is no way to predict what the markets are going to do in the future and limited risk is subject to each person's interpretation. However if you use the rule of 72...18 years
[quote=Slim2None] [quote=mktsystms] [quote=Slim2None]The reason I asked this question is because I'm curious to see what some of you would actually do with your own money, as opposed to a clients money (and why).
[/quote]\
Your original question doesn't provide enough details to be able to give an answer. For example, what percentage of the person's net worth does the $100k represent? What percentage of the person's liquid assets does the $100k represent? How old is the person? Is the person employed? Etc., etc.
You're not comparing apples with apples when you make the simple statement "I'm curious to see what some of you would actually do with your own money, as opposed to a clients money (and why)."
Each client has a different situation, just as each advisor has a different situation.
[/quote]
The priority is income, not building wealth.
[/quote]
Well, if it's my money, where I am in life and income, ect., I wouldn't be looking to produce current income.