Help: I need to find a money manager

Taylor Caby · #1 10-25-2006, 10:05 AM

Hi, I appreciate any advice you guys may have.

I have approximately $500k i want to invest. This is money I want to put away, not worry about, conceivably never touch again (not necessarily retirement fund, that will be a different account which I will put 44k a year into as part of a SEP plan).

I have an account at Schwab right now that has a modest amount (<100k) of stocks, bonds, and mutual funds. I'm reasonably happy with the help I've had there, but not thrilled.

My choices: My bank offers financial services. I talked with the guy a few times and he basically wants to go 80% mutual funds (mix of large, mid, small cap and foreign) and 20% municipal bonds for the tax advantages. The fee is about 1.15% for accounts between 500k-1mm (.85% if i get to 1mm).

I have another group I talked to which basically wants to do the same thing, I'm not sure of the fees yet.

So: what should i do? I could just write Schwab a check for $500k and add it to my account. I have a money manager there who is reasonable and from what I understand the fees are a lot less there (now that i think about it, i really dont know what they are, but i was under the impression they are very small, i think just commissions on trades).

I could use my bank, or these other guys of which I dont know a lot about yet. Or, Im open to any other advice. I'm in Chicago if that matters.

thanks a lot

tc

krishan · #2 10-25-2006, 10:10 AM

With that amount of money you should really read a couple investing books and then shove it in the appropriate index fund.

You might think it's not worth your time given your poker hourly but mismanaging million dollar portfolios I think will cost a lot more than a 20 hour investment in reading.

Krishan

#3 10-25-2006, 11:13 AM

SlowHabit · #4 10-25-2006, 11:30 AM

What returns are you aiming for?

Taylor Caby · #5 10-25-2006, 12:09 PM

[ QUOTE ]
With that amount of money you should really read a couple investing books and then shove it in the appropriate index fund.

You might think it's not worth your time given your poker hourly but mismanaging million dollar portfolios I think will cost a lot more than a 20 hour investment in reading.

Krishan

[/ QUOTE ]

Thanks, I agree to a point. I have a finance degree and I have experience interning at a hedge fund so i'm definitely not clueless. The thing is, I don't want to spend a lot of time now worrying about investing as I want to make as much money playing poker (and running a business I own on the side) as I can. In 6 months to a year, this may be different, and I may want to more actively try to manage my own money.

for now, I really would like to have someone else do it, or at least give me the advice I need to do it.

tks

tc

Taylor Caby · #6 10-25-2006, 12:10 PM

[ QUOTE ]
What returns are you aiming for?

[/ QUOTE ]

I would be content with 8%ish returns over time, and thrilled with over 10%.

tc

krishan · #7 10-25-2006, 12:22 PM

[ QUOTE ]
[ QUOTE ]
With that amount of money you should really read a couple investing books and then shove it in the appropriate index fund.

You might think it's not worth your time given your poker hourly but mismanaging million dollar portfolios I think will cost a lot more than a 20 hour investment in reading.

Krishan

[/ QUOTE ]

Thanks, I agree to a point. I have a finance degree and I have experience interning at a hedge fund so i'm definitely not clueless. The thing is, I don't want to spend a lot of time now worrying about investing as I want to make as much money playing poker (and running a business I own on the side) as I can. In 6 months to a year, this may be different, and I may want to more actively try to manage my own money.

for now, I really would like to have someone else do it, or at least give me the advice I need to do it.

tks

tc

[/ QUOTE ]

Heh, sounds like you know far more than me about investing. Well if there is a high % chance you would manage the money yourself down the road, I wouldn't want to give it a manager for such a short period of time.

I think I would just lock in whatever the best cd/bond/savings rate and worry about it when I wanted to really figure things out.

The time horizon for this investment is really of paramount importance.

Krishan

Baulucky · #8 10-25-2006, 12:39 PM

Take 75-80% of your stash and put it in a 1 yr T-bill or bank deposit. Take the balance and put it in one of the Man commodity funds at a leverage that will meet your objectives.

P.S.: Of course, become a salesman/distributor for Man (or have some wife, girlfriend, etc. to do it), so that you can bag the sales commission yourself.

fflaque · #9 10-25-2006, 12:50 PM

if i were you i would find a manager here at www.iasg.com to diversify 5-10% (i personally like an option credit strategy fund)

Scorpion Man · #10 10-25-2006, 01:02 PM

[ QUOTE ]
Take 75-80% of your stash and put it in a 1 yr T-bill or bank deposit. Take the balance and put it in one of the Man commodity funds at a leverage that will meet your objectives.

P.S.: Of course, become a salesman/distributor for Man (or have some wife, girlfriend, etc. to do it), so that you can bag the sales commission yourself.

[/ QUOTE ]

Don't do this.