Investment Advice for 25 Year Old with 500k Portfolio (paying, income, balance)

[ncole1]

Originally Posted by matthewford

Currently looking for financial advice on my current situation. Will be 25 years old in March and have inherited nearly 500k. Right now it is mostly invested in a diverse portfolio of blue-chip stocks, 100k is in cash. I also receive an annual 25k from commercial real-estate each year for the rest of my life [unless we sell the buildings].

My current job I am making 50k per year and am studying for my series-7 and learning the world of Finance. This job seems reasonably stable and has a high ceiling if I can manage to be successful. We are a small firm only 5 employees at the moment but manage over 350 families with an average net worth of 5 million. We make 1% from our clients Net Worth thus the company brings in roughly 20 million a year with small over-head expenses and as previously stated just 5 employees.

Stocks I like for the future: Nike, Starbucks, Johnson & Johnson, FedEx, Facebook, and Green Mountain Coffee. Due to my stable job and real-estate income I am looking for a more aggressive approach with parts of my portfolio, definitely not all of it. Say 100k. I am open to any suggestions and all suggestions.

I know that at such a young age, with little expenses, if I can invest the right way I can be set for life. My goal is to have 1million by age 30, 5 by age 40, and 10 by age 50.

Thanks for your time and I appreciate any feedback. Happy holidays!!

Are these amounts by age in 2014 dollars (i.e. adjusted for inflation) or nominal?

[bbnetworking]

Best investment u can make is investing in yourself, build your knowledge, so I recommend get to Barnes and Noble, Investment Section and check out some investment books before you put any money into anything.

[MaseMan]

Wow, talk about a "humble brag" kind of thread right here. Reminds of some of the calls I've heard on Suze Orman, on the handful of occasions I've seen that show.

[DaddySpice]

I hear Radio Shack is set to explode! But to be on the safe side, hedge a bit and put some into Russian Rubles.

[matthewford]

Originally Posted by MrRational

[URL="http://en.wikipedia.org/wiki/Rule_of_72"]Rule of 72 - Wikipedia, the free encyclopedia[/URL]

Cutting to the chase:
This inheritance is a windfall that could very easily be the foundation of your entire retirement.
If managed carefully, it could even be your grandchildren's retirement as well.
Don't gamble with it.

otoh, and knowing this pile is secure, you are in the very enviable position of being able to
"take a flyer" using a portion of your own earned income and keep doing so every year.
Unless you're completely foolish at least half of those flyers should turn out well. Some very well.
Have fun with it. Learn something.

Thanks for advice!

I agree with taking a flyer on portion of own earned income is best option. While letting most of this inheritance can slowly grow overtime. By letting it just sit there, the longer the better, if it grows 10% each year in some blue-chip stocks by retirement (65) it would grow to over 10$ due to compounding. But it would obviously be difficult to not touch any of it till 65.

At times I think that I should also learn to live a little and make sure I do things while I can now before I have less flexibility such as kids, bills, mortgage, etc.

[MrRational]

Originally Posted by matthewford

But it would obviously be difficult to not touch any of it till 65.

C'est la vie.

You're making $50,000 salary now and that should only increase.
Find a way to live within your own means.

At times I think that I should also learn to live a little and make sure I do things
while I can now before I have less flexibility such as kids, bills, mortgage, etc.

And all of that is quite doable on that $50,000. Really.

[CaptainNJ]

given what you have told us, id probably see that money as an early retirement dream. i would stash it away and invest it aggressively to try for 10% annually over the long haul. id also sell the building and add that money to the 500k for investing. over the years, add a healthy % of your net income to the pile and let it grow until you can stop working.

[matthewford]

Originally Posted by MaseMan

Wow, talk about a "humble brag" kind of thread right here. Reminds of some of the calls I've heard on Suze Orman, on the handful of occasions I've seen that show.

Not trying to brag, don't see how I can be bragging simply because this is an internet chat-room when I don't know who you are, and you have no idea who I am. If I wanted to brag I would try and do it at the town bar to pick up chicks. This is anomymonous and I want it to remain that way for a reason. I don't like telling people about my financial situation. Therefor I thought a chartroom would be a good place to start.

There are just so many "experts" out there and I think the more opinions I get the better. Sorry if it came across that way.

[CaptainNJ]

Originally Posted by matthewford

Not trying to brag, don't see how I can be bragging simply because this is an internet chat-room when I don't know who you are, and you have no idea who I am. If I wanted to brag I would try and do it at the town bar to pick up chicks. This is anomymonous and I want it to remain that way for a reason. I don't like telling people about my financial situation. Therefor I thought a chartroom would be a good place to start.

There are just so many "experts" out there and I think the more opinions I get the better. Sorry if it came across that way.

dont apologize. who cares if that guy thinks you are bragging?

your numbers will require investing that 500k chunk plus adding monthly savings. dont put any large down payments on anything or pay cash for a new car or anything silly like that. you always want to finance all you can at very low or no interest in order to let your money grow in investments.

[pinkydapimp]

invest long term and forget its there. save aggressively with what you make now. retire at 50.