I think I'll restate the obvious. No one on this board will ever reach 500K annual risk free even at 5%. Second, to manage money does not require a "family office or a financial advisor" simply used that as an example. Let's take a realistic example, $1M
10% cash running at (1%)
15 % junk bond yield group @ (7%)
10% small cap growth @ (10% with std deviatin of 15 % annual)
15% mid cap (8 % std deviation 10% annual and 1.8% dividend yield)
20% reits (10 % yield 0% cap gain, 5% std deviation)
30% large cap (4.5% cap gain, 5% std deviation, 3.5 % dividend yield)
Put all of this on auto reinvestment, or simply log into your account once a month or quarter to reinvest the dividends, doesn't take more than 7 clicks. If you can't do that you're prob too lazy to ever make a lot of $$$.
10% cash running at (1%)
15 % junk bond yield group @ (7%)
10% small cap growth @ (10% with std deviatin of 15 % annual)
15% mid cap (8 % std deviation 10% annual and 1.8% dividend yield)
20% reits (10 % yield 0% cap gain, 5% std deviation)
30% large cap (4.5% cap gain, 5% std deviation, 3.5 % dividend yield)
Put all of this on auto reinvestment, or simply log into your account once a month or quarter to reinvest the dividends, doesn't take more than 7 clicks. If you can't do that you're prob too lazy to ever make a lot of $$$.
Quote: (06-28-2012 10:55 AM)Gringuito Wrote:
But WestCoast you don't have a financial advisor, you have a family office. This is a group of people that you need to manage to make sure they handle the investments properly. You also have the estate lawyers, regular lawyers, insurance specialists, etc. It does take time to setup and keep running. Don't get me wrong, it beats the heck out of actually working for a living. But finton I think overstated needing 50M liquid to make 500K US, it is less but not as low as you think. Making 5-6% return with low risk in this market gets you stuck with crap products like the ARPs that imploded.