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Windfall advice
#1

Windfall advice

Im a 20 year old Singaporean who was just given a large sum of money to invest with.

My parents told me that they expected a long timeframe, high risk appetite and a minimum yield beating the local inflation rate.

Although I lack the experience to pull this off with confidence, I feel that this could be a watershed moment in my life. This is probably a test from my parents, thus failure or retreat are not viable options.

Came up with the following plan:
100% equity, split evenly into nine regional market indices via index funds or ETFs, split evenly to spread investment over period of next 10 months.

Any advice or comments gladly welcomed and appreciated! Help please!
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#2

Windfall advice

I don't know how any non-elite can trust the markets right now. I rather stuff money in my mattress than invest in the stock market.
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#3

Windfall advice

the market really has become like an unsupervised casino at this point. i'd stick for preservation of capital w/safer high dividend stocks if you want to go that route.

the best investment you can make is in yourself. use a small amount to start a business...even if you dont make it work the lessons you learn will be invaluable.
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#4

Windfall advice

This is a complicated question without more information. Do you live in Singapore or what? There are tax issues to consider when investing in foreign stocks (i.e. US stocks for you if you live there). Also, "large" is a relative term. Some people might think $100K is large, and for some only >$1M, or >$10M is large. What you buy depends on how much you have.

One tip I picked up on recently: don't forget to consider dividend funds.

You should really consult a few money management firms or professionals, but find those that charge a flat fee if you can.
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#5

Windfall advice

Consider a Swiss Annuity. You can pick your risk tolerance.

Its better than a continuously changing personally managed series of investments, even if they are "long term". As even if you have winners, its likely that you will break even or more than likely lose money in the long run. You need a professional manager. An annuity structure provides you with further benefits.

The only real risk in an annuity is the failure of the insurance company. But a Swiss insurance company has never failed. And you can denominate in Swiss Francs, which is arguably the most stable currency in the world.
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#6

Windfall advice

Quote: (02-06-2011 02:23 PM)Roosh Wrote:  

I don't know how any non-elite can trust the markets right now. I rather stuff money in my mattress than invest in the stock market.

I agree with Roosh. Read Griftopia before you even think of investing a large amount of money in the market.

Learn how I created a successful 4HWW Muse Online Business and travel around the world.
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#7

Windfall advice

Thanks everyone for all the inputs.

I need to clarify that this portfolio will be a sit-and-hold, minimal maintenance, left-on-its-own-for-10-years kind of deal. There wont be any active punting or daily trades involved in this sum of money, which I felt is the impression most of y'all had.

@Menace
Yeah I live in Singapore. I'd consult a professional, but they always push for managed funds which cost exorbitant management fees and usually arent able to outperform the market bourse index anyway.

@hydrogonian
No thanks, this sum of money can afford a higher risk profile and correspondingly a higher upside. It's not my parents' retirement money, so I shouldnt have to play safe. My impression of Swiss Annuities is like that of a private tax haven, safe from probing and collapse, but with limited upside.
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#8

Windfall advice

Quote: (02-08-2011 11:41 PM)mybestshot Wrote:  

@hydrogonian
No thanks, this sum of money can afford a higher risk profile and correspondingly a higher upside. It's not my parents' retirement money, so I shouldnt have to play safe. My impression of Swiss Annuities is like that of a private tax haven, safe from probing and collapse, but with limited upside.

As I before stated, you can pick your risk profile. Look into it. Good luck.
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#9

Windfall advice

Are you catholic Singaporean?

If so, maybe you are familiar with modern version of the parable of the three sons.
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#10

Windfall advice

You got a number of things going on here – at 20 years old you are not mentally able to manage any amount of money. If you had made the money yourself playing the stock market through your high school years you might have some idea of what you were doing. I really don’t understand what your parents hope to accomplish. If they wanted to help set you up in business they could give you some guidance –
For sake of argument – if you have to show a return on some type of an investment portfolio – so that you learn a lesson or prove to your parents you can hack it on your own – what you said in your second post contradicts the first – ‘a buy and hold and let sit for 10 years’. With what is going on geopolitically right now – so much can change in a 10 year time-span to make any investment planning along those time frames ridiculous. Like it or not – you are going to have to be hands on with this investment. You should go to commodity group meetings – trade the stuff directly.
I agree with your distaste for managed funds with ridiculous maintenance fees. If someone told me that I had a 10 year time frame and 1,000,000 U.S. to invest I would probably research any commodity based stock focusing on various metallic ores (iron, nickel, etc.) and food production based companies. I would become an expert in global weather patterns and corn and soybean and staple food crops. While not invested in a company – I would have a basket of currencies from first world nations with at least 50% in the Swiss franc and any currency that has some type of gold backing.
If I did not have to have the money actually ‘invested’ – I would probably buy a few thousand acres of good agricultural land.
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#11

Windfall advice

http://www.landreport.com/2009/06/soros-...k-to-land/
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#12

Windfall advice

Experience people have a hard time not losing money when investing at all, let alone in higher risk investments with a "higher upside". Truthfully, you should do 1 of 3 things.

1. Give the money to charity. This will be better than losing it in your higher risk investments, which you certainly will do. At least you will be helping people that need it, rather than making a rich man richer.

2. Invest in something lower risk.

3. The best answer. Start a business. If chosen carefully and managed conservatively, you should be able to eventually realize a greater cash return than in any passive investment. Also, you will gain invaluable experience and insight that will allow you to make even better investments in businesses as you get older.

Your current perspective is a prescription to lose all of your money, almost 100% guaranteed.
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#13

Windfall advice

Fuck it. Invest it all in pussy, booze, and the racetrack. You only live once.
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