Haven't done this in months, hopefully i've learnt something:

[Newt_Buggs]

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Savings: 58% (highest interest i could find)

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You're young and obviously understand variance, so it seems to me like you would be better off moving at least some of this to index funds. Personally as a pro gambler I can't stand taking lower EV bets, which is essentially what your savings account is. You can stand to take some fluctuations, and over the next 3 years index funds are a favorite to have higher returns than a savings account, and over 10-15 years its a huge favorite.

[prohornblower]

My gf and I are 28 and here is our allocation:

Retirement (401k, IRA, RothIRA1, RothIRA2) 40%
Short-term savings (5% e-savings) 43% (This is for a home purchase in 2-3 years).
Mutual funds (may or may not be used for home): 6%
Bank account: 4% (usually lower, like 2%)
Cars (two old cars): 6%? Might be lower.

Debts: 2% car debt that will be gone by payday Monday. [img]/images/graemlins/cool.gif[/img]
Also Student Loan debt equal to about 12% of my net worth.

I could obv. pay it off tomorrow, but the rate is low and they're easy to work with so I'm not in a huge rush. I think I'd rather have more capital for a house downpayment in a couple years, then finish off the student loan.

[john kane]

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.

[polkaface]

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.

[krishan]

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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.


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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

[James282]

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

[krishan]

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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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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