Quote: (01-07-2015 10:26 PM)Justinian Wrote:
Reaching out for input from any investment gurus - this will be crucial to my Freedom 55 plan - In 18 months I will take early retirement and liquidate assets and have 500,000 which I will need to invest to make a minimum %5/year for 5 years.
So what would you do if you were me? I'm thinking I would break it into 3-5 tranches and stagger risk, something like 200K in a mix of dividend paying blue chips that pay the %5, a second 200K in conservative blue chips that could be expected to grow %20-25 (total) over the 5 years, then go more risky with the last 100K and buy a basket of Google, Apple, Intel etc. 21st century economy stuff, stalking each one to get in on dips at the bottom of trading ranges when they periodically come off (like Google is doing right now).
If I can turn this into at least 625K after 5 years I will have succeeded. This is just one pillar of the strategy but it's crucial and I can't lose money. On balance, preservation and getting the %5 is quite a bit more important than trying to hit homers.
Unfortunately this is CAD so buying US stocks will be almost %20 more expensive right now and if USD drops against CAD while I'm in U.S. stocks that would be a stiff headwind. Nevertheless, U.S markets have so much more to offer than Canada, a great part of this will have to go to U.S. stocks.
Any names of stocks? I heard about Oak Tree Capital that pays %4-5 div and run by top notch management, for example.
All ideas welcome, thanks in advance to those generous guys that take the time to provide anything.
Sorry - but most of your ideas are off the rocks bad. Stocks - blue chips or not - can fluctuate 20%-40% in that time period and your dividend won't matter shit.
You cannot lose money - that is another difficult sell.
The best and most certain way is to pool most of it into a fund of funds Hedge Fund that gives constant returns of 4-8% via a very sophisticated strategy investing mostly in treasuries and low risk instruments. Those funds are rather popular, but you might get into a few of those - find a couple of those and spread your cash around. Those funds may lose, but the risk is low and you have a good chance of at least getting a 2-5% return or even besting it slightly.
Also - when looking for investment advice - find a trader who does not do it for a living and has no financial incentive - most financial consultants are crap. There are some good ones, but it would take a good one to know one.