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But now I have 25 million and I've heard: - Dump it into the SP500 - Dump it into CDs - Give it to a money manager and hope for the best. If it doesn't work
by IanDrake 9y ago
But now I have 25 million and I've heard:
- Dump it into the SP500
- Dump it into CDs
- Give it to a money manager and hope for the best. If it doesn't work out at least you can blame him/her.
Who's advise to take?
It's really starting to astonish me the financial ingnorance on HN which must be attributed to younger folks who had no skin in the game in 2000 or 2007 and think investing is easy.
- aninhumer 9y agoYes, because as long as you don't spend too much any of these things will work. The market trends upwards over a long enough period, so as long as you're disciplined enough to handle the downturns, you'll continue to make money while doing no work.
- IanDrake 9y ago@aninhumer, I can't reply to your thread, but I feel like people just don't get what I'm saying. Perhaps you could live off 25 million with a drawdown of 1%. That's 250K. So you live like that's your salary. But then the market tanks and 1% of your portfolio is now 120K. That's a big haircut. Do you take 2% now? You've got a 250K lifestyle but you said you'd only take 1%. You've now watched 13 million dollars vanish. Do you stay in the market and hope it goes back up or cut your losses? People here seem to suffer from historical bias because they know the market recovers, but when it happens to you the future will be totally uncertain. Mo money, mo problems. Totally true.