UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: What Should We do? Date: 4/25/2001 9:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<<What do you guys think? I have been investing for a few years and I would like to think it was skill and luck that got me to $300k, however it scares me to think that I could manage a portfolio of $1.3 million without professional help and so much on the line.>>>

I have a low opinion of annuities, primarily because I think I can do better.

Next question, did you feel comfortable managing your investment? If yes, there is very little difference between managing 300k and 1M. If you were able to follow the plan for 300k in good and bad times, it shouldn't be much different with a larger sum. Think of the movie "Hoosiers", when the small town team made it to the state finals and showed up in the hugh city gym. The coach had them measure the heigth of the basket, and the distance of the foul line. Both the same as their gym (and any other gym). Your investment strategy should "measure" the same.

You have plenty of time to study and think. The simplest thing to do is the 4% rule with an S&P 500 index fund. Place 20% (4% x 5 years, which should roughly be 5 years living expenses) in cash, money market, CDs) and 80% in index fund. Each year draw out another 4% from the index fund to replace used living expenses cash.

Take your time and good luck.

JLC

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement