U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-12-2014, 11:28 AM
 
2,238 posts, read 2,642,331 times
Reputation: 3154

Advertisements

If you had $1,000,000 in cash, and were age 55, what would your model portfolio look like if you wanted to retire at age 65 and attain maximum income?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 08-12-2014, 11:32 AM
 
Location: LA, CA/ In This Time and Place
5,446 posts, read 4,113,491 times
Reputation: 5088
I would say that I would invest in real estate, lots of it like renting out apartment buildings, even after retiring from my career.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 11:36 AM
 
2,238 posts, read 2,642,331 times
Reputation: 3154
Quote:
Originally Posted by Nema98 View Post
I would say that I would invest in real estate, lots of it like renting out apartment buildings, even after retiring from my career.
I thought of that, but it's too much work. Been there done that.

I'm thinking of off loading some RE holdings now while interest rates are still low and the RE market is up.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 11:52 AM
 
Location: US
23,269 posts, read 22,492,643 times
Reputation: 18122
Quote:
Originally Posted by Nema98 View Post
I would say that I would invest in real estate, lots of it like renting out apartment buildings, even after retiring from my career.
$1 million will get you a 800-1000 sqft fixer upper SFR where I live lol.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 11:55 AM
 
Location: US
23,269 posts, read 22,492,643 times
Reputation: 18122
Quote:
Originally Posted by eccotecc View Post
If you had $1,000,000 in cash, and were age 55, what would your model portfolio look like if you wanted to retire at age 65 and attain maximum income?
I would look into Lending Club. I have no personal experience with them, but I've done a decent amount of research and found it quite intriguing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 12:06 PM
 
Location: western East Roman Empire
8,471 posts, read 12,377,595 times
Reputation: 8773
Quote:
Originally Posted by eccotecc View Post
If you had $1,000,000 in cash, and were age 55, what would your model portfolio look like if you wanted to retire at age 65 and attain maximum income?
If the objective is maximum income with about average market risk, then a mix of bonds, REITs, dividend-paying stocks, MLPs, maybe some preferred stocks. Among each of those sectors, diversified across maturities, credit quality, specific subsectors, high dividend and growth dividend. You could achieve around 5% annual income.

Without taking into account fluctuations in capital and taxes, and assuming no withdrawals, you could have around $1.55M after ten years, then around $80,000 in annual income thereafter.

Of course capital is at risk. In a sense, you would be building your own variable deferred annuity.

In such case, then, you would probably also have to pick the mix yourself and manage it, I wouldn't trust an advisor or manager to do it for me, unless I handed him the portfolio already made and told him just don't do anything to screw it up.

Hope this helps.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 12:14 PM
 
2,238 posts, read 2,642,331 times
Reputation: 3154
Quote:
Originally Posted by bale002 View Post
If the objective is maximum income with about average market risk, then a mix of bonds, REITs, dividend-paying stocks, MLPs, maybe some preferred stocks. Among each of those sectors, diversified across maturities, credit quality, specific subsectors, high dividend and growth dividend. You could achieve around 5% annual income.

Without taking into account fluctuations in capital and taxes, and assuming no withdrawals, you could have around $1.55M after ten years, then around $80,000 in annual income thereafter.

Of course capital is at risk. In a sense, you would be building your own variable deferred annuity.

In such case, then, you would probably also have to pick the mix yourself and manage it, I wouldn't trust an advisor or manager to do it for me, unless I handed him the portfolio already made and told him just don't do anything to screw it up.

Hope this helps.
Good advice....Thanks
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 01:21 PM
 
4,753 posts, read 3,792,245 times
Reputation: 8462
Quote:
Originally Posted by bmw335xi View Post
$1 million will get you a 800-1000 sqft fixer upper SFR where I live lol.
Seriously? I'm assuming that's in the poshest neighborhood?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 04:12 PM
 
15,847 posts, read 12,352,413 times
Reputation: 13384
Quote:
Originally Posted by eccotecc View Post
If you had $1,000,000 in cash, and were age 55, what would your model portfolio look like if you wanted to retire at age 65 and attain maximum income?
I'm assuming this is taxable and not in a retirement acct.

probably 50% stock, 25% muni bonds, and 25% debt-free real estate (maybe only one rental house, but so what?).

If it was a retirement account I'd just go with 2/3 stock and 1/3 bonds
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-12-2014, 04:24 PM
 
2,238 posts, read 2,642,331 times
Reputation: 3154
Quote:
Originally Posted by ncole1 View Post
I'm assuming this is taxable and not in a retirement acct.

probably 50% stock, 25% muni bonds, and 25% debt-free real estate (maybe only one rental house, but so what?).

If it was a retirement account I'd just go with 2/3 stock and 1/3 bonds
What kind of stocks and in which sectors? What would be your top and bottom beta?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top