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Old 04-09-2014, 01:02 PM
 
477 posts, read 1,876,056 times
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So through the combination of living frugally, inheritance, and expecting a college tuition that hasn't been payed on time I am expecting to have 100k to manage at 23-24yrs old. No debt at all, plan to start building credit soon.
Currently only earning about 27k annually, still living at home, but expect to move out by summer.

Although I did graduate with a degree in finance and currently studying for the CFA level 1, I have never actually managed a "legit" portfolio to this degree. Did not learn about 401ks/roth iras at all during my time at uni.
My current employer does not have a 401k plan at all, no benefits whatsoever lol.

My plans are to eventually make this nest egg into $1,000,000 by 30 so hopefully interest rates are higher(7-8% expectation, 10% ideal) and I can just live off interest if my life is as simple as now.

Right now my main concern is to keep the principal amount while earning decent interest. I checked CD's and 1% for a year being the highest...wow what a joke.

I do have over 5 years experience trading the market, some great years(80%+), some bad years(-50%) mainly because I was trading very leveraged products trying to make $. Back then I was only trading like $5000 worth so I did not want to manage a normal portfolio and earn average returns 5-8% a year. Rather with only $5000, I wanted to go for 100% return.

So right now my plan is to keep about 25-30k for daytrading. Was up $11,000(45%+YTD) a few weeks ago on only about $17,000 in the brokerage account. However quickly went back to up only $1000 for the year. I want to keep this daytrading account for my potential to do the unthinkable. But I have learned to not invest my whole savings for daytrading. I have also learned that if I can somehow compound annually about 50-69%+ a year from 25k nest egg, it can become $1,000,000 by 30. (I do not have my calculator currently so excuse my math isnt exact)

So my question is what should I do with the other 70-75k I have left? I kind of want to buy a SP500 ETF, but right now I feel a huge correction coming. US treasuries have started picking up while leading stocks have started showing weakness. Earning monthly interest while having the principal amount perserved/growing would be great.
Thanks in advance!

Last edited by mrgrape; 04-09-2014 at 01:56 PM..
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Old 04-09-2014, 01:06 PM
 
Location: Holmdel, NJ
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Quote:
Originally Posted by mrgrape View Post
I have also learned that if I can somehow compound annually about 50-69%+ a year from 25k nest egg, it can become $1,000,000 by 30. (I do not have my calculator currently so excuse my math isnt exact)
and how does this bit of insight impact your plans?
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Old 04-09-2014, 01:12 PM
 
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Originally Posted by CaptainNJ View Post
and how does this bit of insight impact your plans?
It is something I want to take a shot at. Though the probability of this trading magnitude is very slim and I could quickly lose a lot of the principal by trading derivatives. If I can earn a decent amount in the other 70%, I won't need to have a high % target to meet annualy of the 25-30% im daytrading.
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Old 04-09-2014, 01:14 PM
 
Location: Vermont
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Ahh...the dreams of a young man. I'm not taking you lightly, but your goals are pretty lofty. And safe investments aren't returning anything. Retire at 30 and live off the interest on a million bucks? You need to think this through a little more. What about inflation? health care? get married? Kids? Not to rain on your parade, but I see zero chance of this working as presented.
But dream big! just come up with a better plan. I'm rootin' for ya!
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Old 04-09-2014, 01:30 PM
 
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Not too concerned about inflation right now. Despite the Fed printing record amounts, dollar still has not made a new low. If it ever gets to a hyperinflation stage, Ill have some real assets(gold/real estate/commodities) to counter/benefit it. And everyone else will be affected by it just as much.

Don't plan to have kids/marry anytime soon/at all, want to taste many fish in the sea before I die ya know? And if I somehow were able to reach that mark by 30, I can actually travel around the world comfortably(travel frugally/simple like a broke college student)
My main drive is that I value freedom more then a materialistic life. I don't expect to be alive for long(past 40+) so I want to live life for those 10 years by planning right now. But thanks sir for the cheer!
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Old 04-09-2014, 01:33 PM
 
Location: Holmdel, NJ
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Originally Posted by mrgrape View Post
My main drive is that I value freedom more then a materialistic life. I don't expect to be alive for long(past 40+) so I want to live life for those 10 years by planning right now. But thanks sir for the cheer!
you have some kind of terminal illness? maybe something in your family where everyone has died young? on one hand, its sad not to live longer but on the other hand its great when it comes to planning out your financial future.
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Old 04-09-2014, 01:55 PM
 
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No terminal illness, but just seeing all these unexpected deaths everywhere as well as working with a lot of elderly people at the financial planning firm...I don't expect to live long. Rather live a short average life instead of dulling it out in the long run when any moment you could be hit with a painful illness.
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Old 04-09-2014, 02:03 PM
 
Location: Holmdel, NJ
20,899 posts, read 25,976,860 times
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Quote:
Originally Posted by mrgrape View Post
No terminal illness, but just seeing all these unexpected deaths everywhere as well as working with a lot of elderly people at the financial planning firm...I don't expect to live long. Rather live a short average life instead of dulling it out in the long run when any moment you could be hit with a painful illness.
the thing most people will tell you (and they will be right) is that you can not expect to grow your 100k into $1 million in 10 years. not only that, but if you try by making big bets on high risk investments, you will probably end up losing a lot of money.

if you want to live a short and exciting life, then maybe you should just take your 100k and move to Thailand. you can eat pad thai and nail ladyboys until you croak.
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Old 04-09-2014, 02:33 PM
 
477 posts, read 1,876,056 times
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Right I understand the low potential.
Making big bets will be only with 25-30k. Even then my stop loss will be tight.


The 70k I want to park in a safe, yielding vehicle. I could try to come up with a portfolio of stocks that look good technically and fundamentally, but want some opinions on how to best manage this.
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Old 04-09-2014, 02:37 PM
 
Location: Holmdel, NJ
20,899 posts, read 25,976,860 times
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ok, ill say you should park that money in vwinx.
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