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#1
03-15-2005, 02:26 AM
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Is my plan feasible?
First off, I'd like to say that I don't know too much about stocks.
Alright, I'm 20 years old now and looking to invest. I've got about 40k saved up right now to start investing. I'd like to invest in something med-high risk (Is a 10% return possible doing this?). I predict over the next 2.5 years (till I graduate college) to make about 250k-300 from poker. This is with taxes and expenses taken out. I'd like to have something I could keep putting in money every month (maybe 8k-10) or every few months. So when I graduate college hopefully I'll have somewhere between 350k-400 invested. I'd continue to play poker a few more years and keep on investing it in the same thing. Hopefully by the time I'm 30 I'll be able to have over 750k invested with a house and a car and whatnot. Is it possible then to just keep this 750k invested and just live off the return? I don't think I would retire, but could I if I wanted to? I was thinking about putting it in mutual funds. My friend told me this could get 10% over the long run. What's my best bet here? I also plan to do the Roth IRA thing as well. Assuming I can make the money in poker (don't worry I'm still getting my degree too), is my plan risky at all? Is this possible? It really seems too good to be true. Thanks Ponks 
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#2
03-15-2005, 04:10 AM
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Re: Is my plan feasible?
My advice to you is to do your research...
Buy this book called "how to make money in stocks" by william oneil. Read the 20 signs on when to sell... if you follow this fourmula you should be living large by the time you are 30.
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#3
03-15-2005, 04:10 PM
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Re: Is my plan feasible?
10% may be a little optimistic. I think you can project 8-9% for a diversified portfolio. These numbers are over a long (25-30 year) timeframe. The market can be anywhere in a couple of years, and there are no guarantees that the market will go up even over a 10 year period. 8-9% may even be a little optimistic.
If I were you, I'd pick up the Malkiel, Bogle, and Bernstein books (check out the books thread), and read those through. They are pretty persuasive. You will see the way of the index funds. Things are going to be a little bit more difficult for you, as the investments won't be tax-sheltered. Large-cap domestic stock funds are usually pretty tax efficient, but international and small-cap funds can get dicey. Bond and REIT funds generate a lot of tax liability. A simple starter portfolio (vanguard funds): Something like 60% in the Total Stock Market (TSM) fund 20% Tax-managed international 20% in tax-exempt bonds You couldn't really retire comfortably on 750k. Assuming 9% return (once again, a little optimistic), and 3% inflation, you would be able to withdraw 45k (in less valuable 2015 dollars) per year. This assumes no withdrawl of principal, but I think the real number would be very close to that. I'd put the "Fukc you" retirement level at about 1.5-2M in todays dollars.
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#4
03-15-2005, 07:46 PM
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Re: Is my plan feasible?
Well, the thing is I dont think I would have much to pay for. I would guess I might spend 25k-35k a year after I get the house and car, but this is a rough estimate. Guess I could always play poker for a few more years after that then. Thanks for the help, I'll definitely check out those books. My friends uncle is a financial advisor and I called him today, and he said 10% was definitely probable over the long run, but I do understand what you are saying about the markets volatility in the short term.
Guess I need to get 1.5 mil as soon as possible! Ponks
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#5
03-15-2005, 08:05 PM
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Re: Is my plan feasible?
[ QUOTE ]
Well, the thing is I dont think I would have much to pay for. I would guess I might spend 25k-35k a year after I get the house and car, but this is a rough estimate. Guess I could always play poker for a few more years after that then. Thanks for the help, I'll definitely check out those books. My friends uncle is a financial advisor and I called him today, and he said 10% was definitely probable over the long run, but I do understand what you are saying about the markets volatility in the short term. Guess I need to get 1.5 mil as soon as possible! Ponks [/ QUOTE ] I'd be really leary of financial advisors. Some of them are barely better than thiefs. Read those books I recommended (or at least one of them), and you should be able to spot the scammers yourself. I think I may have more expensive tastes than you. Enjoy getting your Bucky-ass handed to you by Northern Iowa!
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#7
03-15-2005, 11:25 PM
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Re: Is my plan feasible?
[ QUOTE ]
I dont think I would have much to pay for. I would guess I might spend 25k-35k a year after I get the house and car [/ QUOTE ] I thought the same thing. Then I got married. [img]/images/graemlins/smirk.gif[/img]
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#8
03-15-2005, 11:39 PM
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Re: Is my plan feasible?
[ QUOTE ]
Oh I'm definitely a huge Illini fan. I lost the Open Challenge for February so my opponent got to pick my Avatar/Loc for a week and he stuck me with this crap. I'm a sophomore at UIUC right now. Ponks [/ QUOTE ] Ouch. '01 alum, CompE.
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