Advice/Ideas for investing a large amount of money?

[Hotel Detect]

wdcbooks and mntndrew, thanks again for going out of your way to explain things. I am going to spend the next week researching those books and forums.

[Hotel Detect]

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I don't have anything useful to add.

But its [censored] awesome u have 35 mil! And I want to be u someday.

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Lol thanks, but trust me it was through no personal accomplishment, I just got lucky.

Goodluck, I hope you get there.

[John Ho]

I'm interested in why you have a value bias in the US and a small cap value bias overseas.

And why would someone with $35 million dollars hire a financial advisor to put him into mutual funds. Paying double fees seems silly when, with his portfolio, he could hire top advisors who could build a diversified portfolio of individual stocks on the equity side. This gives him superior tax management and lower fees.

Crazy advice. Anyone advising someone with $35 million to be buying mutual funds isn't doing him a service. Mutual funds allow smaller investors to diversify in way they can't with individual stocks. A large investor need not worry about such things. Using an advisor to be put into an index fund is even worse. If you want to mimic an index, which I think is fine, then you could do that with little assistance. It's just not cost effective to buy a millions of dollars worth of index funds.

[maxtower]

Before anyone can adequately answer your question they also need to know something about your goals. Since you have more money than you need to live on, you need to be as conservative as possible and still reach your personal goals. The rest of us who are still trying to save enough for retirement need to maximize our returns, but with $35mil, an all bond portfolio wouldn't be bad if it meets your needs. If I were you, I would figure out how much money I wanted to make each year. Put the amount required to make that into fixed income investments, and then put the rest into stocks.

[John Ho]

If his goals are to pass more money off to charity or heirs then being ultra conservative may not benefit him either. I doubt he needs much, if any, fixed income at what sounds like his relatively young age. People act as if fixed income is some sort of guaranteed investment. Inflation destroys fixed income positions in your portfolio while your equity positions would shrug it off.

It's easy to dismiss this risk (and it is a risk as much as a stock tanking) but it's effects can be as bad as stock market crash. Now you could invest in shorter term fixed income but then your return after inflation will be close to nil.

[Thremp]

John Ho,

Why do you assume the financial advice we would recommend consists of funds instead of someone creating a portfolio of individual elements?

[John Ho]

Thremp,

I was referring to the person recommending the DFA funds for our $35 million man.

Seeing as how you haven't posted on this forum who did you think I was referring to? Who's the we you refer to?

John

[Thremp]

The first five people who responded could be included in that "we".

[John Ho]

No, I meant are you all financial planners, brokers, etc? I thought maybe you all worked together.

Like I said, I was just responding to one individual but it applies to anyone who would suggest any mutual funds for a $35 million portfolio.

[Sniper]

Hotel,

With $35 Million in investable assets, you should be speaking to the High Net Worth teams at the major investment banks. At the very least, those discussions will give you an idea of the types of things you should be thinking about.

For some ideas on what other wealthy investors are doing, you can check out The World Wealth Report . If you click around a bit there, you can download the Asset Allocation chapter from the report, or register to download the whole report.