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Author: glennb6 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: what to expect ? Date: 1/24/1998 7:06 PM
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hello,
I have not been involved with investing :( but currently have between 100-125k US to invest. Specifically I am looking for income. My goal is to relocate outside the US and I will need an average annual return of 14-15k US annually (thanks to a good exchange rate)to live on. I plan to have a 2-3 year reserve in foreign bank account.

I have been told by one financial planner that I should be fully invested in stocks and that he (as a full service broker) has AVERAGED 21% annual return. Another brokerage house I spoke with said I'd be lucky to see 8% average and be cautious of anyone claiming better.

I certainly will be talking with other brokers, I don't feel I have the knowledge and experience to 'do it myself'. Any comments on the above and/or suggestions are appreciated.

Regards
glennb6
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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1466 of 75379
Subject: Re: what to expect ? Date: 1/24/1998 11:52 PM
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<I certainly will be talking with other brokers, I don't feel I have the knowledge and experience to 'do it myself'. Any comments on the above and/or suggestions are>

Well, I would suggest starting reading The 13 Steps at URL:

http://www.fool.com/School/13Steps.htm

You could also order "The Motley Fool Investment Guide" (that I have read and find helpful), "You have more Than You Think", and the Motley Fool Investment Workbook. I have not seen the last two, and am not certain as to the exact title of the workbook. You can read the 13 steps while waiting for the books to arrive. Look at FoolMart or Amazon.com to order.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1468 of 75379
Subject: Re: what to expect ? Date: 1/25/1998 7:16 AM
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Greetings, Glennb6, and welcome.

<<I have not been involved with investing :( but currently have between 100-125k US to invest. Specifically I am looking for income. My goal is to relocate outside the US and I will need an average annual return of 14-15k US annually (thanks to a good exchange rate)to live on. I plan to have a 2-3 year reserve in foreign bank account.

I have been told by one financial planner that I should be fully invested in stocks and that he (as a full service broker) has AVERAGED 21% annual return. Another brokerage house I spoke with said I'd be lucky to see 8% average and be cautious of anyone claiming better.

I certainly will be talking with other brokers, I don't feel I have the knowledge and experience to 'do it myself'. Any comments on the above and/or suggestions are appreciated.>>

JeanDavid gave you some good advice. In this Fool's opinion you MUST have the knowledge and experience to do it yourself. Otherwise, you're setting yourself up for some big disappointments. No one will manage your money better than you will yourself, and to do that you must have an understanding of what's out there, what risks are entailed in any investment, and what you can expect from that investment. You must also understand -- fully -- what level of risk you can stand in the marketplace. Take the time now to get that education, and you will be well rewarded later.

To that end, IMHO you will be well-served if you toddle over to your local library, discount bookstore, or even here in the Fool Mart and pick up some easily read, easily understood, inexpensive texts that will soon have you confidently investing in stocks using some simple systems that will take but an hour per year of your time (if you're slow) yet produce returns that put the majority of professional money managers to shame. I suggest and commend the following to you: "Beating the Dow" by O'Higgins; "The Dividend Investor" by Petty and Knowles; "The Motley Fool Investment Guide" by the Gardner brothers; "One Up on Wall Street" by Lynch; and "What Works on Wall Street" by O'Shaughnessey. All are well worth their low cost and the small investment in time it takes to read them. Get them and read them. Be assured you will be glad you did.

Additionally, I recommend you read The 13 Steps to Investing Foolishly which you can access from the opening screen to The Motley Fool. After you have done that, poke around TMF a bit and explore our nooks and crannies. You will find a wealth of information that will help as you begin investing on your own. And be sure to ask questions anywhere if you need clarification on any issue. Folks on these boards are super about helping others, so someone will be sure to answer. We believe the only foolish question is the one left unasked.

Regards.....Pixy


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Author: tedferg Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1483 of 75379
Subject: Re: what to expect ? Date: 1/26/1998 8:51 PM
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It seems that 8% is a good number to expect over the long haul from investing in the market. Seems to be a real general 'safe' number that brokers will quote. 21% is hard to imagine, but in a few recent years the S&P index funds would have doen this - so it depends on what time frame these people are talking about

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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1489 of 75379
Subject: Re: what to expect ? Date: 1/26/1998 11:54 PM
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<It seems that 8% is a good number to expect over the long haul from investing in the market. >

Have you been talking to a full-commission broker or something? Over the last 60 years or so, the S&P index has increased about 10.7% annually. So getting only 8% means that someone else is getting the other 2.7%, or about 25% of your return. I wonder who that might be!

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1497 of 75379
Subject: Re: what to expect ? Date: 1/27/1998 6:12 PM
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Greetings, Tedferg, ans welcome.

<<It seems that 8% is a good number to expect over the long haul from investing in the market. Seems to be a real general 'safe' number that brokers will quote. 21% is hard to imagine, but in a few recent years the S&P index funds would have doen this - so it depends on what time frame these people are talking about>>

As JeanDavid points out, the historical market return since 1926 has been 10.71%. The 8% you see bandied about so often is the "conservative" ROR based on a mix of stocks and bonds. That's a different can of worms entirely.

Regards…..Pixy


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Author: Gilvid One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1527 of 75379
Subject: Re: what to expect ? Date: 1/29/1998 9:29 AM
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Don't have anything to add to the other excellant posts here but agree with them for you to get educated on managing your $$$ yourself. It's easy, you can do it, it just seems a little overwelming in the beginning. You've been managing your finances all your life why pay someone else to do it for you now.
But my real reason for replying to this is to ask what country you plan to relocate to. Your comment of " good exchange rate" arroused my interest. Have read before that US retired citizens can live very well in other countries on modest incomes. What about US taxes and medical services like medicare and madicade.??

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1530 of 75379
Subject: Re: what to expect ? Date: 1/29/1998 6:53 PM
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Greetings, Gilvid, and welcome.

<<Have read before that US retired citizens can live very well in other countries on modest incomes. What about US taxes and medical services like medicare and madicade.??>>

Can't speak much to the tax issue, but I can say for sure that neither Medicare nor Medicaid are available outside of the U.S.

Regards......Pixy


Subject: Roth IRA's (cont.)
Author: blueman2    Date: 1/29/98 2:03:48 PM (ET)
Pixy,


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