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#11
09-28-2007, 07:36 AM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
polkaface, it's roughly $100k in savings and $55k in everthing else.
i did my numbers a bit wrong i think as i wasn't sure how to take into account my $25k student loan. i'd like to think all my investments are very high returning with a decent chunk of risk, but imo the short term risk is low enough and the long term risk is minimal, so should be very good investments. the CD cycle looks very interesting, ill look into that. krishan, the sports betting tips are from a site i paid $2k for, they list all there results for the past 3 years or so and so far this season have done very well (8 right 1 wrong on a 2:5 odds basis generally). the past years have varied for 100%+ to 12% returns. got to hope i get lucky. i'd like to get some retirement action going, but right now number 1 is getting a place to live, i'll be putting in max retirement contributions when i start work which'll be matched by employers. newt buggs, i just not a fan of index funds, i've read too many stories about recessions, only if it were for 10 years+ would i do index funds, and i don't have enough money to do that. thanks for the replies, interesting to see other peoples' allocations. 
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#12
09-28-2007, 10:23 AM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
If you haven't done so yet, look at the CD thread that is going on now. There are some good rates available.
With that much money in savings, I would move a good portion of it to some sort of CD as a safe short term investment vehicle. Here is a primer on a CD ladder. Although, I would only do a ladder if there is a chance you might need the money that is invested in the CD. If you can put a chunk away for the 3 years and know you won't need it, then just get a 3 year CD and be done with it. http://www.bankrate.com/brm/news/sav...1.asp?caret=14 Just as an idea, if you can do with leaving your savings at 20k (again assuming you won't have any huge bills, payments or emergencies) if you can get 80k into a CD at 6% (which is a rate discussed in the CD thread) After 3 years (assuming you reinvest your yearly interest into another CD of at least 5% that will mature at the same time as the original 3yr CD) Your 80k will grow to more than 95k.
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#13
09-28-2007, 11:14 AM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
how much equity do you have in your house? Krishan [/ QUOTE ] Roughly 275k (380k value, 105k Mortgage) * I bought the place 3 years ago before a huge housing boom here and have had it apreciate a ton
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#14
09-28-2007, 12:32 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
[ QUOTE ] how much equity do you have in your house? Krishan [/ QUOTE ] Roughly 275k (380k value, 105k Mortgage) * I bought the place 3 years ago before a huge housing boom here and have had it apreciate a ton [/ QUOTE ] Have you thought about a cashout refi to diversify your assets? Put another 100K on the mortgage and 100K in the stock market? Krishan
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#15
09-28-2007, 12:35 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
krishan, the sports betting tips are from a site i paid $2k for, they list all there results for the past 3 years or so and so far this season have done very well (8 right 1 wrong on a 2:5 odds basis generally). the past years have varied for 100%+ to 12% returns. got to hope i get lucky. [/ QUOTE ] You should understand sample sizes, standard deviations. If you are betting football, 3 years is nada. It's like saying I'm a winning value investor after outperforming the indexes for 3 years. Baseball is better I imagine because of additional data. Still have you read wong's sportsbetting book or any of the recommended sports betting reading? Newsletters/picks would seem to be the same in sportsbetting and investing. Why aren't these guys rich already if they are so good? Why run a information service? Krishan
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#16
09-28-2007, 12:56 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
Krishan,
Disagree re: your comment about "why aren't these guys rich?" Sportsbettors in particular can get their money in at an optimal line, and then tell the whole world without effecting their equity - giving them a sick expectation. James
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#17
09-28-2007, 02:03 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
Krishan, Disagree re: your comment about "why aren't these guys rich?" Sportsbettors in particular can get their money in at an optimal line, and then tell the whole world without effecting their equity - giving them a sick expectation. James [/ QUOTE ] The same thing is true of stocks. You can buy a position and then tell people without affecting your equity. Why can't they just get in with more size though? Perhaps the maximum sizes are such that running an information service is more profitable than betting? Krishan
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#18
09-28-2007, 02:05 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
Have you thought about a cashout refi to diversify your assets? Put another 100K on the mortgage and 100K in the stock market? Krishan [/ QUOTE ] I have thought about that, and even selling to live somewhere else. If it was a stock, I'd for sure rebalance, but I'm happy where I'm living and am willing to stick it out.
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#19
09-28-2007, 02:22 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
[ QUOTE ] Have you thought about a cashout refi to diversify your assets? Put another 100K on the mortgage and 100K in the stock market? Krishan [/ QUOTE ] I have thought about that, and even selling to live somewhere else. If it was a stock, I'd for sure rebalance, but I'm happy where I'm living and am willing to stick it out. [/ QUOTE ] It's not about being happy where you are. It's about all your investment eggs being in one basket. What if your house was worth 2M. Would you then cash out 1M to put in index funds in case the value of the house decreases? I would. So the question is simply one of magnitude. I wouldn't be comfortable with that high a % of my net worth in any single investment subject to risk. There are other things at play of course. Perhaps you future earnings are going to be large relative to your current net worth in which case you can just not worry about. My mom in-law owns with her 3 sisters a property in Spain worth somewhere between 800K and 15M. They don't really know. But given the net worth of the most successful sister is ~300K, there is a dollar value where they need to sell the property to diversify as the property would represent way to much of their holdings. Way too much risk. Krishan
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#20
09-28-2007, 02:56 PM
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Re: Haven\'t done this in months, hopefully i\'ve learnt something:
[ QUOTE ]
[ QUOTE ] Roughly 275k (380k value, 105k Mortgage) * I bought the place 3 years ago before a huge housing boom here and have had it apreciate a ton [/ QUOTE ] Have you thought about a cashout refi to diversify your assets? Put another 100K on the mortgage and 100K in the stock market? Krishan [/ QUOTE ] Borrowing money to buy another asset is not diversifying in the traditional sense of the word - it is generally risk-increasing. Also, note that refinancing can often turn an otherwise non-recourse loan into a recourse one.
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