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Let's say you had a successful exit and now have a bunch of stock or cash on your hands. What do you do to both protect your assets and possibly grow them witho

Let's say you had a successful exit and now have a bunch of stock or cash on your hands. What do you do to both protect your assets and possibly grow them without getting too aggressive because you want to retire on that lump of money? Looks like fiduciary duty advisers cannot be trusted. Some claim that index funds such as vanguard are also not guaranteed to continue being a safe bet once everybody and their dog switches to them vs managed funds. What else is left to do?

wayn3 9y ago
you go to a private banker in a jurisdiction whose sole job it is to do private banking and get that shit private banked. dont pretend you dont know which country im talking about. thats a really simple problem with a known solution. its just not advertised at all. everyone above a couple mil gets 10-15% annually and just doesnt talk about it to average randos. because instead of listening they always start shouting matches about how its so unfair that normal people dont have access to this stuff and taxes and tax evasion and all the lowlife hate thats inevitably going to happen.
- BadassFractal 9y ago
  Why wouldn't private bankers be as predatory of high net worth individuals as other financial professions are of normal folk? How does having a couple of mil protect you from being taken advantage of by charlatans? Don't the rich fall for dumb schemes the same was everybody else?
  - wayn3 9y ago
    Private banking, in said jurisdiction, is a line of work with centuries of tradition. And they just don't have any fucking reason to fuck over their clients. Protection? If you are a billionaire and your banker fucks you over, I think they're more scared of you than you are of them. I did not tell you to private bank with bank of america new york city. If you do that, kiss your money goodbye. They'll take all of it, funnel it into the next garbage scheme and yell "stakeholders".
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- tgjsrkghruksd 9y ago
  this is actually 100% bullshit. HNW individuals do have opportunities in private equity and hedge funds not available to the general public but the risk/return curve is not really any better than what's available to joe bloggs in a brokerage account these days. possibly far worse. The real advantage gains reaped are in things like tax avoidance and asset protection. These are vehicles that tend to be available to the really rich and only really useful to the really rich. "Everyone above a couple mil gets 10-15% annually and just doesn't talk about it"... please. Bull. Shit. Those who do talk about it all the time. Those who lose their shirts are the quiet ones. There have certainly been times when nominal yield of 10-12% was the norm (before inflation/taxes). Those days are not these days. And these days earning the market (domestic or global) with minimal cost is available to literally anyone with a checking account and a smart phone (in the USA at least).
  - walshemj 9y ago
    Are there no quoted PE funds in the USA that normal investors can buy? I have done quite well out of Electra in the UK 3I also has had a good run recently.
  - wayn3 9y ago
    and about a dozen other asset classes that you dont even take into account because youre stuck in startup land. if you have the cash, go to switzerland and talk to the people instead of yammering on about how its not possible. 10% YoY on a 10M investment isn't something people talk about because its rather ordinary. but you wont get it at bank of america. commercial banks simply dont know how to produce those returns for their customers. or maybe they do but are more busy with sucking off their stakeholders. i honestly dont care.
iopq 9y ago
Buy index funds until managed funds lower their fees. Vote with your money. If you want your portfolio to be a safer bet, put more percentage of it into bonds. Besides, most managers have a fund that has the same companies as an index, just in slightly different proportions. If they pick things that are risky and fail, it would look bad. If they slightly underperform the gains the index has, they look fine.
- tgjsrkghruksd 9y ago
  tip to the uninitiated, this is called "closet indexing", and it's bad. If you want an index fund (and you should), buy a no-load, low-cost index fund.
frgtpsswrdlame 9y ago
If you have a bunch of money you should research it out and find a fiduciary. The more money you have the easier they are to find (I work for one). EDIT: Here's a start for search terms from wikipedia. Personal fiduciary services are often referred to as private trust, private client, private wealth management, or private banking services. >Some claim that index funds such as vanguard are also not guaranteed to go up as everybody and their dog switches to them vs managed funds. If the market's going up index funds are going up. Considering their relative performance think of it like this. If half of US stocks were owned by VTI and the rest were owned by, say, 20 actively managed funds then on average, before fees, they will both perform the same because they represent the same basket. The catch is that passive funds have low fees since they're easy to operate and active funds have high fees because they require more work. Also consider that in those 20 active funds there will be some winners and some losers and you'll have no way to know who they are. Setup a simple bogleheads-ish portfolio and go think about other things.
smileysteve 9y ago
> Some claim that index funds such as vanguard are also not guaranteed to continue being a safe bet once everybody and their dog switches to them vs managed funds Managed versus index funds works not unlike the 50% rule of bitcoin; If managed funds / individual stocks start regularly performing better, money will flow into them (overpricing) and fees will rise so that index funds are underpriced. There are no guarantees in future performance; and your index fund is also not diversified from macro economy risk.

wayn3 9y ago

you go to a private banker in a jurisdiction whose sole job it is to do private banking and get that shit private banked. dont pretend you dont know which country im talking about. thats a really simple problem with a known solution. its just not advertised at all. everyone above a couple mil gets 10-15% annually and just doesnt talk about it to average randos. because instead of listening they always start shouting matches about how its so unfair that normal people dont have access to this stuff and taxes and tax evasion and all the lowlife hate thats inevitably going to happen.

BadassFractal 9y ago
Why wouldn't private bankers be as predatory of high net worth individuals as other financial professions are of normal folk? How does having a couple of mil protect you from being taken advantage of by charlatans? Don't the rich fall for dumb schemes the same was everybody else?
- wayn3 9y ago
  Private banking, in said jurisdiction, is a line of work with centuries of tradition. And they just don't have any fucking reason to fuck over their clients. Protection? If you are a billionaire and your banker fucks you over, I think they're more scared of you than you are of them. I did not tell you to private bank with bank of america new york city. If you do that, kiss your money goodbye. They'll take all of it, funnel it into the next garbage scheme and yell "stakeholders".
- deleted 9y ago
  [deleted]
- deleted 9y ago
  [deleted]
tgjsrkghruksd 9y ago
this is actually 100% bullshit. HNW individuals do have opportunities in private equity and hedge funds not available to the general public but the risk/return curve is not really any better than what's available to joe bloggs in a brokerage account these days. possibly far worse. The real advantage gains reaped are in things like tax avoidance and asset protection. These are vehicles that tend to be available to the really rich and only really useful to the really rich. "Everyone above a couple mil gets 10-15% annually and just doesn't talk about it"... please. Bull. Shit. Those who do talk about it all the time. Those who lose their shirts are the quiet ones. There have certainly been times when nominal yield of 10-12% was the norm (before inflation/taxes). Those days are not these days. And these days earning the market (domestic or global) with minimal cost is available to literally anyone with a checking account and a smart phone (in the USA at least).
- walshemj 9y ago
  Are there no quoted PE funds in the USA that normal investors can buy? I have done quite well out of Electra in the UK 3I also has had a good run recently.
- wayn3 9y ago
  and about a dozen other asset classes that you dont even take into account because youre stuck in startup land. if you have the cash, go to switzerland and talk to the people instead of yammering on about how its not possible. 10% YoY on a 10M investment isn't something people talk about because its rather ordinary. but you wont get it at bank of america. commercial banks simply dont know how to produce those returns for their customers. or maybe they do but are more busy with sucking off their stakeholders. i honestly dont care.

iopq 9y ago

Buy index funds until managed funds lower their fees. Vote with your money. If you want your portfolio to be a safer bet, put more percentage of it into bonds. Besides, most managers have a fund that has the same companies as an index, just in slightly different proportions. If they pick things that are risky and fail, it would look bad. If they slightly underperform the gains the index has, they look fine.

tgjsrkghruksd 9y ago
tip to the uninitiated, this is called "closet indexing", and it's bad. If you want an index fund (and you should), buy a no-load, low-cost index fund.

frgtpsswrdlame 9y ago

If you have a bunch of money you should research it out and find a fiduciary. The more money you have the easier they are to find (I work for one). EDIT: Here's a start for search terms from wikipedia. Personal fiduciary services are often referred to as private trust, private client, private wealth management, or private banking services. >Some claim that index funds such as vanguard are also not guaranteed to go up as everybody and their dog switches to them vs managed funds. If the market's going up index funds are going up. Considering their relative performance think of it like this. If half of US stocks were owned by VTI and the rest were owned by, say, 20 actively managed funds then on average, before fees, they will both perform the same because they represent the same basket. The catch is that passive funds have low fees since they're easy to operate and active funds have high fees because they require more work. Also consider that in those 20 active funds there will be some winners and some losers and you'll have no way to know who they are. Setup a simple bogleheads-ish portfolio and go think about other things.

smileysteve 9y ago

> Some claim that index funds such as vanguard are also not guaranteed to continue being a safe bet once everybody and their dog switches to them vs managed funds Managed versus index funds works not unlike the 50% rule of bitcoin; If managed funds / individual stocks start regularly performing better, money will flow into them (overpricing) and fees will rise so that index funds are underpriced. There are no guarantees in future performance; and your index fund is also not diversified from macro economy risk.