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Author: NotfoolinRound Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121455  
Subject: Pls Help Me get Off To A Good Start Date: 11/16/2011 4:01 PM
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Hi Fools,
I'm new to TMF and attempting to reshuffle my accounts and investment strategy. I'd appreciate the community's perspective and wisdom so I get off to an optimum start. I've joined 3 services; SA and Pro in August and MDP and DV in November. I've purchased 11 "core" and "Now" picks off David's and Tom's SA list. I've gotten margin and options authority set up, but have not done any trades in this area yet. I want to educate myself regarding options before I dive in. I also want to get some confirmation on the overall plan descibed below before I start buying anything else. As soon as I feel I'm heading in the right direction with my overall account allocation strategy I'll pull the trigger on the 1st MDP buy reco.

As I write this I'm planning to post it to all premium services boards in order to get perspective from the people who are directing and or using each of the services. I will also post to Inheritance, Portfolio and Tax Strategy boards for their perspective. And why not put my ear to the Divorce board while I'm at it? I'm hoping folks from each community will address questions and comment on the aspects of the plan that pertain to their area of interest/expertise.

Here are the questions :
1) I'm planning on using a different premium services strategy for each account that I'm managing. This will make it a bit easier to know how much a 5% position amounts to when I'm instructed to allocate that much to a stock purchase. I think it will also make comparing the strategies to each other a bit easier over the long haul. Is there a more flexible, more simple, or more effective way of managing this aspect? I intend to use Fidelity as my brokerage. Would you recommend I use Fidelity Active Trader Pro.com watch lists to create "premium service" baskets and just tap money from various accounts to make the individual purchases? As a reult a given IRA account would contain investments that represented a mixture of premium service strategies. In short, one strategy/per acct or pull cash from whatever acct makes sense and use watch lists to hold each strategy?
2) What is your perspective on the amount to allocate to each strategy? (If I go with the "one strategy/acct" approach I don't have much freedom to change the amount of $ in each acct., but if I use watch lists to organize, I could take the total dollars I'm planning to manage myself and divide it betwen the strategies in the way that makes the most sense.) For example, since MDP and MDP/DV is supposed to be the best of the best should I be moving out of SA holdings and allocating that money differently, for example to Pro? Then I'd have both an IRA account and a brokerage account holding my Pro investments. I'd use the brokerage acct for performing the option trades that can't be done in the IRA. How would you allocate this cash if it were yours?
3) The brokerage acct is the only place to do full options trading so I've relegated MF Pro to that account. However, it doesn't seem to be enough money to meaningfully offset down markets affecting the rest of the portfolio. What do you MF Pro guys think?
4) There is nearly $800K that needs to get invested. I'm psychologically prepared to move at whatever speed will produce the best results. Is there a case for dollar cost averaging or since all the cash is available now and the market is on sale should I be looking to get fully invested just as soon as I get the appropriate premium service guidance? Also, though it's a small factor, I get unlimited free trades for the next 90 days. It would be nice to fill out the portfolios during that time period.
5) What are the best places these days to park the $100k emergency fund?

Notes:
1) In early 2012 I plan to make 2011 and 2012 SEP (70k) and IRA (12k) contributions from the brokerage acct.
2) Out of the Rollover IRA I'm carving off an amt equal to the inheritance to create a tax deferred "separate property" acct (Joe's IRA). Then I'm using the inheritance funds in a taxable account for joint expenses and debt reduction. This benefits both of us by eliminating the increase in ordinary income that would result if I used IRA distributions (I'm 61) to accomplish financial cleanup. As long as my soon to be ex-wife agrees with this straight across swap of inherited funds for IRA funds (and she does) does anyone see any other issues?
3) Debt payoff from jointly held brokerage funds is 5 accts totaling 67k at 8% - 13% interest.
4) PAS = Fidelity Model Portfolio; AG = Aggressive Growth, GR= Growth
5) TMF = The Motley Fool; SA=Stock Advisor, MDP=Million Dollar Portfolio (2012), MFP=Motley Fool Pro (2011), DV = Deep Value
6) Values in 1000's.
7) Owner1 is acct ownership now
8) Owner2 is acct ownership post-divorce

I apologize for this table. I have been trying to paste it in from Excel or Outlook Notes or a Word tab delimited file - with absolutely no luck. I used the checkbox at the bottom and have tried the pre commands. Any suggestions for the future are appreciated.


----- Now-------- ----- 2011 Yr End--- ----- Early 2012----
Acct Name Tax Status Owner1 Owner2 Value Strategy Value Strategy Value Strategy
==========================================================================================
PD-IRA Traditional Wife 50-50 47 PAS - AG 47 PAS - AG 59 PAS - AG
SEP-IRA SEP Me 50-50 293 TMF-SA 293 SA 363 SA
Rollover Rollover Me 50-50 1292 PAS - Gr 912 PAS - Gr 924 PAS - Gr
Inheritance Taxable Me Me 380 N/A 0 N/A 0 N/A
Joe's IRA Traditional Me Me 0 New 380 MDP/DV 380 MDP/DV
Brokerage Taxable 50-50 50-50 0 N/A 213 MFP 119 MFP
Debt Payoff N/A 50-50 50-50 0 N/A 67 N/A 0 N/A
Emergency Taxable 50-50 50-50 0 N/A 100 ? 100 ?
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