Skip to main content
No. of Recommendations: 0
For several years we managed to keep our invested principal arount $1.5 million. During 1999 it shrank to $1.4 million. We have a broker. Good credentials. Obviously he simply followed the original criteria of no risk. Protect principal. Naturally we were heavily invested in municipals and corporate bonds. Missed the entire stock market run up. Trying to regroup. Invested in a mixture of blue chip and technical securities. But only invested approximately $130M. Retired since 1985. Current portfolio produces approximately $90M in income. The more we diversify, the less income. Caught in a Catch 22 scenario. Where do I begin to figure it all out???
Print the post Back To Top
No. of Recommendations: 0
Well, evaluate your situation and decide whether you want growth or income. We have a much smaller amount that's mostly invested in an index fund and in several specific stocks. Only a couple give us income -- dividends amounting to oh, less than $100 all together for the year, I think. But growth has been great -- one of the stocks more than doubled, most of the others did quite well (one disappointment, which we sold at the end of the year to get a small loss). Then again, we won't be retiring for 20+ years, probably, so growth is a priority for us.
Print the post Back To Top
No. of Recommendations: 1
For several years we managed to keep our invested principal arount $1.5 million. During
1999 it shrank to $1.4 million. We have a broker. Good credentials. Obviously he
simply followed the original criteria of no risk. Protect principal. Naturally we were
heavily invested in municipals and corporate bonds. Missed the entire stock market run
up. Trying to regroup. Invested in a mixture of blue chip and technical securities. But
only invested approximately $130M. Retired since 1985. Current portfolio produces
approximately $90M in income. The more we diversify, the less income. Caught in a
Catch 22 scenario. Where do I begin to figure it all out???


You have to change your mind set.

Do you realy care if you get income taxed at lets say 30% + or have to sell stocks for spending money and be taxed at 20%+

The answer is to think about investing in more stocks and sell some of the stocks each year for living expenses. This approach will also help with inflation.

Print the post Back To Top
No. of Recommendations: 0
Badtimer, You shouldn't be so hard on yourself to choose that handle. If you need the 90k for expenses, you are probably a little short in your portfolio. It is generally recommended around these parts that one should limit retirement expenses to 3-5% of portfolio value. This is a very general statement. It depends on your age, portfolio mix and general portfolio return. I would highly suggest that you begin to figure it out over at the Retire Early Board in Speakers Corner. The resident guru there also has a web site called the Retire Early Home Page. There is a link to it in FAQ at the board. While you may not be an early retiree you will still find a tremendous anount of help for your questions.

Regards,
Paul
Print the post Back To Top
No. of Recommendations: 0
Badtimer,
Where do I begin to figure it all out???(

First, get your numbers straight (1.5M vs. 130M?). Then go read the Fools' 13 Steps.

Ron W.
Print the post Back To Top
No. of Recommendations: 0
IF you want mutual fund
t rowe price science and technology
PRSCX

My definition of Blue chip.
Lucent. LU
3m
J.P Morgan. JMP
INtel.
Walmart.WMT
GE

My definition of tech
JDSU
VRTS
ARBA
NTAP
EMC

You need some investment in Russell 2000 type stocks.
Don't go wild chasing tech stocks. I lost $300 on 10 share purchase this morning. Thats correct 10 shares

And I owe one stock that has dropped from 120s to 79 this week. And not because of earnings announcement


Print the post Back To Top