Starting up investment portfolio..? need help

[fearless2k]

Hi guys,
I am having a bit of difficulty deciding what i want to do with the $$ i make from poker.. just 3 days ago i was in a dealership ready to buy a 60k$ car... until i realised how stupid this was. That 60k is half of my poker winings, (banked 120k so far) and would be a really poor way to spend the money esp w no $$ put aside for growth or whatever.

I like to think myself a "smart poker player" not the best not the worst but i try and keep my edge high by good bankroll management and room selection etc.. i want to carry those "valueable characteristics" over into the "real world". so before i go taking shots and buying cars i dont need for the sake of it i wanna set up something "real" incase poker stops being soo good.. (which its doin atm.. having a bad september.. breakeven over 20k hands ..).

But this brings me to a road i have no knowledge of..i dont know the "best" investment stratagies, who good financial advisors are where i should look etc etc.. i have been to my bank but their advice is biased towards companies that give the advisor the most commission.. [img]/images/graemlins/crazy.gif[/img]

and then i saw this section of the forum.. how foolish of me to think that 2+2 would not have the answer to my Questions ...

I basically wanna stick 100k into some sort of "safe investment" where it will steadily do work for me. i plan to add more risk at a later date when i get more $$ free... but i wanna start building up to something now so when im 40-50 i can retire comfortably. im 21 atm and in Med school in England..

SOrry if the post is a bit long and vague but any input and direction would be welcome

Thnks Fearless

[gull]

If you want a safe investment, park your cash in a high-yield (5%+) savings account. Many banks in the US, both online and B&M, offer savings accounts with a 5% APY.

If you can tolerate losses, then I would suggest investing the money in an index fund. Index funds are less risky than individual stocks, but have the same expected return (derived from risk premia). Index funds, an informal class of mutual funds, are also better than normal mutual funds too for a few reasons. They have lower costs, higher risk-adjusted returns, no style drift, and they are typically better taxwise. Best of all, index funds take no work. Just stick your money in a fund and let it grow passively.

I'm unfamiliar with English laws, savings accounts, and investment opportunities, so I can't really give any specific advice.

[Fishhead24]

Get your money into a savings account as suggested.......and add a small set of money to it quarterly that you can afford.

Don't touch it for 23 years and you will be very happy at 45 years of age.

[Fishhead24]

In the meantime, build a BR for some nice things in your life now that you can spend money on and invest in other more risky ventures............but never let go of that initial savings plan.

[spex x]

I'm a real estate guy myself, but I think that most people would agree that one of the best long term investments that you could make is to buy yourself a house. Hey, you're spending the money anyway on rent, so why not put that money in your own pocket instead of your landlord's?

One thing that you might consider also is if you are considering buying a house is to buy a duplex (or other multiunit). The rents keep your housing cost extremely low and you can then take the savings and reinvest it elsewhere. And the landlord headaches on one unit are extremely low, so it will be pretty passive overall.

Also, I'd advise you to NOT put all of your money into the same vehicle. Maybe spread your 100k around into 4 or 5 different strategies. Hire a fee-based financial advisor and listen carefully to what he says. Remember too that any advisor, financial or otherwise, has the job of making sure you don't get burned. But that doesn't mean that you blindly follow his advice. Be sure that you understand, at least generally, the investments that you're getting involved in.

[fearless2k]

Hey guys thnks for replies so far, I have been reserching a little and come up w a sort of a plan,

Spex thnks for reply. gettin on the housing ladder was orignally my plan but im living in Liverpool UK (capital of culture 2008) and imo house prices are pretty extortionate atm due to the capital of culture crap due to happen in 2008.. my banks financial advisor feels the same (but maybe that is because he wanted my $$ in his products for the commisiion) so ive decided not to invest into housing for now.
So my 120k$ becomes 60k£ cus im in uk .. here is my plan so far.....

I also agree with spreading the $$ around. im planning to get a better current account then one im with atm (0.10% interest.. wtf..) and get 6.5% on 2.5k and then put some into a savings account (not decided yet but ICICI's 6.3% looks good for now)and then "drip" money into a regular saver, (again not decided yet but there are some 7.1 / 8% rates going online)

So that should take care of around £10k

That leaves me 50k,

i am unsure as weather BONDS are worth it or i should put that $$ into some sort of Index fund as suggested by Gull, i did look into this last year but didnt really get anywhere... i hope to get a financial advisor and see what he has to say. i think i would put away around 10k in bonds too.

Btw are premium bonds worth it? or -EV as its a gamb0l weather u win a prize or not.. and in mean time ur money depreciates due to inflation..:s

This would leave me w 20-30k free, 10k of which i will start to invest in individual stocks and shares and see how i do, start off V V slow as i am a huge fish when it comes to stocks... but hope to build up a nice portfolio over time...

Lastly i "should" have 20k (40k$) or thereabouts left over, i wonder is there any way to invest that into US index funds or similar investment... as i expect the USD to recover EVENTUALLY against the £, (i rember when my 1000$ used to get me 700£, but now i get 500£..:s)

Please tell me what u think of my plan so far, and noobish mistakes i am about to commit.

I am going to sort out some financial advice today or 2moro from an independant guy but i really hate the "not knowing" of weather this guy is getin me to use my $$ for his commisiion or really giving me sincere advice..

Thnks again for helping me out, i hate being such a bad fish..

[fearless2k]

Oh and i live at home still (at liverpool Uni so parents insisted..) so no rent cost so that is not a big issue

[spex x]

[ QUOTE ]

I am going to sort out some financial advice today or 2moro from an independant guy but i really hate the "not knowing" of weather this guy is getin me to use my $$ for his commisiion or really giving me sincere advice..



[/ QUOTE ]

Yes, its this exact reason why I'd find a fee-based advisor rather than a commission-based advisor. And ask him about how he's getting paid. I don't know about England, but in the US financial planners can't keep that hidden if you inquire. Since a fee-based advisor is getting paid directly by you, I'd feel more confident that his advice represents my interests better.

[Fishhead24]

There are tons of great gambling based projects you could do with a substantial BR that can be very profitable, much more than what you would get in your run of the mill type investments.

[fearless2k]

[ QUOTE ]
There are tons of great gambling based projects you could do with a substantial BR that can be very profitable, much more than what you would get in your run of the mill type investments.

[/ QUOTE ]

please give me some more info, i still have a 30k broll for online poker at 2/4 and some 5/10 but i dont feel as thou im not quite good enough to beat the 5/10+ games atm, i think the problem is due to "finaicial insecurity".. if u know what i mean,

i dont want to play w scard money and i start playin scard when i move up in stakes so i decided to at least put the rest of my $$ into a better place to see if that makes a change for the better.

i hoping my next shot at 10/20 will be permenant and im not gnna move down just cus i loose a buyin or whatever,, and not get scrd and withdraw when i win over 30k hands or so.. (thats how i got this 100k, i beat 5/10 over 70k hands but then got scard after 10k downswing and took a lot of the roll out..)