The "I have XX money to invest, where should I put it?" Thread - Page 6

Clayton · 08-02-2009, 07:20 AM

Country you live in - USA
Income - 10k-20k per month from poker
Risk Tolerance - not sure what this means
Timeframe for investment - unsure whats optimal
Debt - none right now

===============================

apoligies as this doesnt directly relate to the topic at hand, but i figure its worth a shot.

basically i have around 100k sitting in my bank and 125k sitting in my poker bankroll, and I'd like to figure out a way to redistribute my finances such that i have a working portfolio and not (ONLINE POKER+CHECKING ACCOUNT).

any tips would be appreciated, and that includes just a link or a book recommendation, or even a reputable company with people who will do this for me for a fee.

i am ridiculously inexperienced at everything related to BFI so consider me a blank slate and be gentle :O i want to learn!

thanks!

NicholasJ · 08-02-2009, 02:13 PM

Quote:

Originally Posted by nuclear500

My suggestion to everyone is never do this. All retirement accounts will offer a cash option (or they should) that should be exercised, that way at a later time you can move the money out of cash into available funds.

Why never? You can only make up contributions in the last tax year. So you will be limited to $10k total (2009 + 2008). You've missed out entirely on 2006 and 2007's contributions of $8000 total.

It is a Roth IRA, so the contributions would NOT be tax-deductible. What makes it better than any other form of investment/debt-reduction? Why is it so bad that I haven't contributed?

NicholasJ · 08-02-2009, 02:17 PM

Quote:

Originally Posted by Clayton

Country you live in - USA
Income - 10k-20k per month from poker
Risk Tolerance - not sure what this means
Timeframe for investment - unsure whats optimal
Debt - none right now

===============================

apoligies as this doesnt directly relate to the topic at hand, but i figure its worth a shot.

basically i have around 100k sitting in my bank and 125k sitting in my poker bankroll, and I'd like to figure out a way to redistribute my finances such that i have a working portfolio and not (ONLINE POKER+CHECKING ACCOUNT).

any tips would be appreciated, and that includes just a link or a book recommendation, or even a reputable company with people who will do this for me for a fee.

i am ridiculously inexperienced at everything related to BFI so consider me a blank slate and be gentle :O i want to learn!

thanks!

For starters, I would take most of the money in your checking and put it in a money market account or orange savings account. At least you earn something on it while you figure out what to do with no risk. I use ING Direct. Its free and there are no minimums or penalties afaik. Currently earning only 1-2%, but that's better than nothing.

Clayton · 08-02-2009, 04:50 PM

Quote:

Originally Posted by NicholasJ

For starters, I would take most of the money in your checking and put it in a money market account or orange savings account. At least you earn something on it while you figure out what to do with no risk. I use ING Direct. Its free and there are no minimums or penalties afaik. Currently earning only 1-2%, but that's better than nothing.

which of these options are you referring to? http://home.ingdirect.com/open/open.asp

nuclear500 · 08-03-2009, 12:40 PM

Quote:

Originally Posted by NicholasJ

It is a Roth IRA, so the contributions would NOT be tax-deductible. What makes it better than any other form of investment/debt-reduction? Why is it so bad that I haven't contributed?

Quote:

You've missed out entirely on 2006 and 2007's contributions of $8000 total.

If there are genuine other uses for the money and its not going to sit there not working for you, then there are reasons not to contribute. But if you've done it 'because it started sucking' you aren't thinking long term, which is what retirement investing is all about. You are performance chasing.

"Its doing well, so I'm going to invest" and you buy at the height of the market. "Its doing badly so I'm going to not invest". You miss out on the market lows entirely unless you are some miracle market timer or get lucky. This might be an understandable approach if it were individual stocks, but thats why index investing or investing in mutual funds is the way 99.9% of people should invest.

Either take a Dollar Cost Averaging approach or a lump sum approach and stick with it.

thylacine · 08-03-2009, 01:28 PM

Quote:

Originally Posted by nuclear500

Either take a Dollar Cost Averaging approach or a lump sum approach and stick with it.

What do you mean by `a lump sum approach'?

nuclear500 · 08-03-2009, 02:18 PM

Quote:

Originally Posted by thylacine

What do you mean by `a lump sum approach'?

Either one giant $5000 lump sum at the beginning, middle, or end of year.

Or I'm starting to think a quarterly approach, or even three times a year with the appropriate dollar amounts so it matches the $5000 by the last lump sum, might be a way to go.

There have been some limited studies that show unless multiple lump sums are timed to a market bottom or market top, there is practically no difference long term between lumpings or averaging. You can do a 'study' yourself even. Historical NAV data is there, just a matter of putting it together.

No matter how you decide to do it, stick to it.

suzy89222 · 08-03-2009, 02:24 PM

country i live in: usa
income: varies a lot, online poker player, last year i made just over 1 million. so far this year, i have made over 700k. (obviously around half of that went to taxes)
net worth 1,700,000
risk tolerance: unsure
debt: none
amount to invest : 250k, will be more soon

i am a childless 35 year old woman with no future plan outside of poker. i have 100k in the stock market (s&p500), 430k tied up in trust deed loans (getting back half of that later this year so will have more that i wont know what to do with), i have 100k equity in a condo im renting out, bought a house for 675k 3 months ago, had to put down 40% ( 270k). putting 200k into house for remodeling, furniture, etc. should i get a home equity loan?? i am an investment idiot, have no idea what to do.

NicholasJ · 08-03-2009, 06:23 PM

Quote:

Originally Posted by Clayton

which of these options are you referring to? http://home.ingdirect.com/open/open.asp

The "orange savings account" but i don't know what the "electric orange" is.

ArturiusX · 08-03-2009, 06:58 PM

Quote:

Originally Posted by suzy89222

country i live in: usa
income: varies a lot, online poker player, last year i made just over 1 million. so far this year, i have made over 700k. (obviously around half of that went to taxes)
net worth 1,700,000
risk tolerance: unsure
debt: none
amount to invest : 250k, will be more soon

i am a childless 35 year old woman with no future plan outside of poker. i have 100k in the stock market (s&p500), 430k tied up in trust deed loans (getting back half of that later this year so will have more that i wont know what to do with), i have 100k equity in a condo im renting out, bought a house for 675k 3 months ago, had to put down 40% ( 270k). putting 200k into house for remodeling, furniture, etc. should i get a home equity loan?? i am an investment idiot, have no idea what to do.

You need to be more clear with what you're after. What is your financial goals? What variance in your finances are you willing to pay for more money?

suzy89222 · 08-03-2009, 08:01 PM

Quote:

Originally Posted by ArturiusX

You need to be more clear with what you're after. What is your financial goals? What variance in your finances are you willing to pay for more money?

dont really know. guess i should figure it out.

nuclear500 · 08-03-2009, 11:32 PM

Quote:

Originally Posted by suzy89222

country i live in: usa
income: varies a lot, online poker player, last year i made just over 1 million. so far this year, i have made over 700k. (obviously around half of that went to taxes)
net worth 1,700,000
risk tolerance: unsure
debt: none
amount to invest : 250k, will be more soon

i am a childless 35 year old woman with no future plan outside of poker. i have 100k in the stock market (s&p500), 430k tied up in trust deed loans (getting back half of that later this year so will have more that i wont know what to do with), i have 100k equity in a condo im renting out, bought a house for 675k 3 months ago, had to put down 40% ( 270k). putting 200k into house for remodeling, furniture, etc. should i get a home equity loan?? i am an investment idiot, have no idea what to do.

Don't want to derail...but if you bought a $675k house 3 months ago...what was it worth 2 years ago?

You should consider a SEP-IRA as your first investment vehicle for retirement. https://personal.vanguard.com/us/acc...iewContent.jsp

Saxophone · 08-04-2009, 11:16 PM

* Country you live in : FRANCE

* Income : 10k - 20k per month from poker

* Risk Tolerance : low/medium

* Timeframe for investment : lifetime

* Debt : none

* Any other information you might have that would help us

* amount to invest : $15K

I am a student in france and im going back in college very soon, i ll play a lot less poker and i see the dollar losing value against the euros each day (this is scaring me a lot), im wondering if i should cash out and invest 15K (I wont need it if i go on a downswing). I could potentially add some thousand of dollars each month.

My financial goal would be to have a "safety fund" that would never touch except if very big emergency. I would like it to grow into some big dollars.

miktau · 08-16-2009, 03:34 PM

Country you live in - USA (NYC)
Income - Student (10k yr)
Risk Tolerance - Moderate
Timeframe for Investment - See Below
Debt - None
Amount to Invest - 20k?

Long time lurker, first time poster. Basically I'm 18, heading off to college next year. Luckily I have a ridiculously awesome full ride (Macaulay Honors at CUNY) that will permit me to live in Manhattan rent and tuition free and provide me with a number of extras like a small stipend (books, travel later) and macbook. All I really have to pay is food and entertainment which won't be more than a few grand which my parents are covering. I'm planning on grad school and maybe a year or two of travel/work in between so I need to have some of it liquid in 4-5 years. I also wanted to get started young saving for retirement so I wouldn't mind socking away a small bit. I have a part time market research job lined up for next year along with poker income (micro stakes ldo), ebay etc. so I'll be making maybe 8-10k this year (hopefully). 20k is currently in ING account, with some of it still locked up in CD's from 1-2 years ago earning 4-5%, although its all coming due really soon. Oh and I also have maybe 10k in savings bond from my birth but parents won't let me touch it as it was all gifts and not earned like the rest (some of it's doing well like 5%, and the rest is still better than ING). Parents are saving my undergrad college fund for grad, which is good because it was down 40%+ the last time I checked, don't plan on touching this for 4-5 years. Basically I'd like to make some of my liquid cash grow a good bit over the next four years to help with grad school and travel while taking some consideration for retirement. Sorry for the long read and thanks for the consideration.

Cheers,
Mike

ArturiusX · 08-16-2009, 07:37 PM

miktau:

You're in a strong position to invest in shares, it looks like all your expenses are covered, you have some emergency money in bonds already, and you're young and have time to let your investment see fruition.

I'd invest in a diversified index fund, vanguard offers them, maybe put 25% into mid cap index, 25% into a balanced US, 25% International value and 25% international growth. Then sit on it for 10 years and re-assess later. Don't look into the swings, just keep your head down, focus on school, and let time do its work.