C****n
发帖数: 2324 | 1 How would you allocate your money? Assume you don't want to buy a house, and
$1m is all you have.
I can't sleep well to have $1m in stock or mutual fund, or gold. How about
you guys? | d*****r
发帖数: 273 | 2 It depends what do you want to do with your money? Do you want to use the
money to travel, to pay for your children's education or just donate to a
charity?
I have a goal which is to support my wife and I when we retire. So if I had
a million dollar, I would invest in those stocks which 1) have a long
history of paying increasing dividend; 2) the current yields are not too low;
3) they have competitive moats. With these companies, I would have a great
chance to reach my goal. I would use 1M to allocate money into 20-50 stocks
which fits these criteria, with an initial yield of 3.5-4%. With an average
of 6-8% dividend increase annually, plus dividend reinvestment, I should be
able to reach my goal comfortably with this plan. At that time, I would not
need to touch the principal, the dividend alone is enough to support us.
The question is how to get this 1M :-)
Just my 2 cents. | y****i
发帖数: 778 | 3 Rated Muni bonds had lower risk than corporate bond and much lower risk than
stock. With monoliner insurance like assurance AGM/FSA or MBIA/FGIC/NATL,
muni bond can replace your CD because of the very low risk for no payment
from neither bond issuer nor insurance company. The recovery rate is also
much higher for Muni, 60% versus 37.5%
for senior unsecured corporate bond from Moody's report "U.S. Municipal Bond
Defaults and Recoveries, 1970-2011". However, liquidation of muni bond is
more difficult than corporate bond. If you hit AMT, muni bonds are better
because it is tax free. If you have Ira or Roth IRA, corporate bonds are
better because of the higher yield.
You can set up bond ladder with mixed muni and corporate bond. When you need
money in addition to the monthly interest they pay you semiannually, sell
the corporate bond first, and then muni with capital gains. | C****n
发帖数: 2324 | 4 I have the same goal as yours, except:
1. Pick 20 - 50 stocks? Goodness, that's like a fund manager. You have the
skill to do that? And balance them every year? or month?
2. these stocks can have 3.5 - 4% yield? Can you recommend me some?
By the way, if you have $1M, and you will buy $1M stock? Isn't that too
risky? You sounds like a gambler. What about another financial crisis like
the one in 2008 or even 1929?
had
low;
great
stocks
average
be
【在 d*****r 的大作中提到】
: It depends what do you want to do with your money? Do you want to use the
: money to travel, to pay for your children's education or just donate to a
: charity?
: I have a goal which is to support my wife and I when we retire. So if I had
: a million dollar, I would invest in those stocks which 1) have a long
: history of paying increasing dividend; 2) the current yields are not too low;
: 3) they have competitive moats. With these companies, I would have a great
: chance to reach my goal. I would use 1M to allocate money into 20-50 stocks
: which fits these criteria, with an initial yield of 3.5-4%. With an average
: of 6-8% dividend increase annually, plus dividend reinvestment, I should be
| y****i
发帖数: 778 | 5 My Fidelity Bond account balance 280k, Interest 12112$ a year after tax,
13500$ if including zero coupon bond for about 20k. Long-term capital gain
9319, short term 3287, total capital gain 12606$ this year. Of course
capital gain can be 0 if interest rates go up, but bottom line is you never
lose money, or 4-5 percent yield after tax if you hold the bond until
maturity when the market price is lower. For small rich investors have asset
between 250k to 2 million, I think individual corporate and muni bonds are
the best choice because you can generate predictable monthly cash flow very
easy and enjoy life for something else but not risk investment. | C****n
发帖数: 2324 | 6 GOD, I need to learn from you guys carefully, as I was looking for any
investment with 5% return for a long time!
People say Cash is the king, but Cash in the bank is not a good feeling.
I have a Ameritrade account, will that be OK to buy the same Fidelity Bond?
Not sure where to buy corporate bond and muni bonds?
never
asset
are
very
【在 y****i 的大作中提到】
: My Fidelity Bond account balance 280k, Interest 12112$ a year after tax,
: 13500$ if including zero coupon bond for about 20k. Long-term capital gain
: 9319, short term 3287, total capital gain 12606$ this year. Of course
: capital gain can be 0 if interest rates go up, but bottom line is you never
: lose money, or 4-5 percent yield after tax if you hold the bond until
: maturity when the market price is lower. For small rich investors have asset
: between 250k to 2 million, I think individual corporate and muni bonds are
: the best choice because you can generate predictable monthly cash flow very
: easy and enjoy life for something else but not risk investment.
| y****i
发帖数: 778 | | y****i
发帖数: 778 | 8 Fidelity has about 30000 muni bond and 25000 corporate bond to choose during
9am to1pm EST time, so far I don't see any other broker has so many
inventory to search. However, as long as you can find reasonable yield bond
with your broker, it's fine to buy there. | b******y
发帖数: 1684 | 9 你年入过M的，拿几个M出来买个commercial property,轻松过5% 6%。贷款leverage一
下8%很正常。
【在 C****n 的大作中提到】
: GOD, I need to learn from you guys carefully, as I was looking for any
: investment with 5% return for a long time!
: People say Cash is the king, but Cash in the bank is not a good feeling.
: I have a Ameritrade account, will that be OK to buy the same Fidelity Bond?
: Not sure where to buy corporate bond and muni bonds?
:
: never
: asset
: are
: very
| d*****r
发帖数: 273 | 10 Here is an article about what you do if you have 1M when you reach
retirement age and how that you will not run out of money (It is a long
article):
http://seekingalpha.com/article/290289-retirement-s-4-rule-why-
http://seekingalpha.com/article/290294-retirement-s-4-rule-why-
I'm totally sold on this idea and have been following this path since 2010.
I also have written articles as follows:
http://www.mitbbs.com/article_t0/Investment/31253657.html
http://www.mitbbs.com/article_t0/Investment/31235969.html
You can find my monthly portfolio update at
http://cn.dividendengineer.com/?page_id=42
【在 C****n 的大作中提到】
: I have the same goal as yours, except:
: 1. Pick 20 - 50 stocks? Goodness, that's like a fund manager. You have the
: skill to do that? And balance them every year? or month?
: 2. these stocks can have 3.5 - 4% yield? Can you recommend me some?
: By the way, if you have $1M, and you will buy $1M stock? Isn't that too
: risky? You sounds like a gambler. What about another financial crisis like
: the one in 2008 or even 1929?
:
: had
: low;
|
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