Advice on Investing $400,000 Dollars

[dogears]

Good man. Another educated and smart investor.

Btw, maybe some of us are very experienced professionals.

Originally Posted by bolinp78

You'll be going in worse than blind-folded if you listen to most of the people on here tell you where to put your money, i can promise you that. Do some of your own research to learn about what is out there and then go get an advisor (and do not let them push you around and force anything on you).

I do not personally use an advisor, but I have concentrated my money in dividend yielding stocks, MLP's, a few bonds a while back, and mixed in some covered calls every so often. I look really good right about now because I bought a ton during the big downturn, knowing that at the (low) point I bought it at, if it went any lower it didn't matter because I wouldn't be in a position to be forced to sell any of it. So now I'm up 100+% on my total cost basis on a lot of positions, but that isn't normal. You can't expect and plan for something like that.

Dividend stocks are good, but you don't just buy them purely because the dividend looks sexy. You have to believe in the company as well. If you plan to keep the stock long term, the dividend will help you mitigate any unrealized losses, though.

[CollinsE90]

Originally Posted by bmwmthree

Well then, you should have said you inherited the money in the OP if you want to be taken seriously. Still pretty weird to inherit that much unless it's from your parents (but I would guess not since you're still in university)?

Who gives a fuck where he got it, if you dont have anything to add to his question gtfo.

[Buegie]

what's the rush, I imagine you're young? Do you need the money for something in particular?

[BTM]

needs money for WINNING

[bolinp78]

Originally Posted by Buegie

what's the rush, I imagine you're young? Do you need the money for something in particular?

It's the rush to get some of it out of the bank so it's no longer subject to inflation, sitting there and losing value.

[dogears]

My biggest holding. Originally bought on IPO in the 90s!! Added many times. Owned TPP at the crash bottom, taken over by EPD shortly after.... +150% there. Then loaded up on Duncan Energy (DEP) since EPD was a bit rich during the 09 recovery. DEP at around 14. Just got a buyout from EPD for 42! Not bad.... EPD done me very very good.

Interestingly enough, on this forum two years ago I jumped in with some advice to take the 2.9% financing instead of buying. My advice was to buy TARP Bank preferreds. I mentioned BAC.W at around 12. It can be searched out here. Well it is back over 25! Plus the yield! I did that with my M3. Minimum down and invested in bank preferreds and MLPs at the very bottom. Made back 2 M3s for my trouble.

Originally Posted by bolinp78

I love me some EPD. I'm up like 130% on it I think, and I've owned it for almost two years I think. The distributions are pretty sweet.

[Buegie]

Originally Posted by bolinp78

It's the rush to get some of it out of the bank so it's no longer subject to inflation, sitting there and losing value.

I'm aware, I was wondering why he was giving an investment timeline like 5 years and not concerned with general long-term growth

[Vanity]

Originally Posted by dogears

Doubters will be doubters. LINE is one of the MLPs I mentioned.

AMAZING returns for over 15 years and low volatility. Beta is .35 for 10 years. 1/3 the SP downside.

Originally Posted by bolinp78

I love me some EPD. I'm up like 130% on it I think, and I've owned it for almost two years I think. The distributions are pretty sweet.

edit: man, I love me some LINE, too. You're right up my alley. LINE is a great company with a lot of potential.

Goodness..... I wish I knew what you two were talking about. Seems like you're doing pretty well investing in MLP's. I guess I'll wirte that down and ask my Financial Advisor.

Is it a bad time right now to invest in MLP's? It seems like a lot of you bought the market when it crashed in 08.

Also, where do I go to see the past percentage performances of EPD or LINE? I just checked out EPD and it says the stock is worth ~$44. So, where do I make money? Dividends are pay-outs right? But I'd have to sell my shares in EPD to see any actual tangible profit right?

Is it EVER advisable to invest $400k all in one company (like EPD?).

Man, what questions should I be asking the Financial advisor? And will they try to f-me over?

[greycrx87]

I have a custom built stockcharts account for technical analysis, performance tracking etc. The market crush of 08-09 was one of a lifetime opportunity to buy some of these stocks...never invest all your capital in one stock. You need professional advice.

[Vanity]

Originally Posted by Buegie

I'm aware, I was wondering why he was giving an investment timeline like 5 years and not concerned with general long-term growth

I figure most kids my age have about 10k in the bank (if they've smart and saved it on their own) and, in terms of investing potential, it's not a lot.

My idea is: "Why leave $400k in the bank and let it sit there collecting dust (an inflation, etc)?"

$400k is a pretty big capital for someone in their early 20's to have, so I want to invest it in and make money on it. So why 5 years? Because a lot of things will be happening from 20 to 25 like living on my own, etc etc. It's the goal to have enough to buy my own place all-cash with no mortgage.

That doesn't mean I'm not open to long-term investments either, but I also do need to make some money within the first 1-5 years that I can use... lol...

[KingOfJericho]

Originally Posted by Vanity

Is it EVER advisable to invest $400k all in one company (like EPD?).

NO.

[Blake]

i know a nigerian prince that will get you $40m for your $400k.

[Pinarello Rider]

I think you need to know what you want the money for. Do you want to buy a house with it? Buy a car? Buy a boat? If you put that in an IRA of some sort, and let it simmer for 40 years, you'll be able to retire a very wealthy man. Do a TON of research on picking a FA though. Read everything you can. EVERYTHING. Then get referrals from friends/parents/employed people. Then pick your investment.

If it were me, I'd buy my house with it, and never have to pay a mortgage again. Some would advise that it is better to invest at 6% annually than pay 5% interest on a mortgage, which is technically true, but I'd rather be debt free...

[greycrx87]

now is not a good time to invest. high commodities prices are going to put us back into recession. US debt looks uglier every day..

[Buegie]

Originally Posted by Vanity

Is it EVER advisable to invest $400k all in one company (like EPD?).

sure, when you have a $5mill+ portfolio. Dumping everything you have into one stock is suicidal

[bolinp78]

Originally Posted by Vanity

Goodness..... I wish I knew what you two were talking about. Seems like you're doing pretty well investing in MLP's. I guess I'll wirte that down and ask my Financial Advisor.

Is it a bad time right now to invest in MLP's? It seems like a lot of you bought the market when it crashed in 08.

Also, where do I go to see the past percentage performances of EPD or LINE? I just checked out EPD and it says the stock is worth ~$44. So, where do I make money? Dividends are pay-outs right? But I'd have to sell my shares in EPD to see any actual tangible profit right?

Is it EVER advisable to invest $400k all in one company (like EPD?).

Man, what questions should I be asking the Financial advisor? And will they try to f-me over?

You have to be careful choosing when to invest in MLP's, not only because you'd rather buy it lower rather than higher, but the yield goes down as the unit price goes up. If you choose the right one, they can be very stable and predictable because oftentimes, especially if they are pipelines, they lock in long term contracts.

I would try finance.yahoo.com to look at past performance.

After reading your last post, the first thing that I would do is spend some time on the internet reading the basics. You need to figure out the basics first. You've got a lot to learn in that department. At your level, if you care enough about it, you can learn a hell of a lot by just reading.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by Buegie

sure, when you have a $5mill+ portfolio. Dumping everything you have into one stock is suicidal

Or an absolute genius... depends on which way the stock goes...

[dogears]

naptp.org

National Association of Publically Traded Partnerships. Lots of research there.

Originally Posted by bolinp78

You have to be careful choosing when to invest in MLP's, not only because you'd rather buy it lower rather than higher, but the yield goes down as the unit price goes up. If you choose the right one, they can be very stable and predictable because oftentimes, especially if they are pipelines, they lock in long term contracts.

I would try finance.yahoo.com to look at past performance.

After reading your last post, the first thing that I would do is spend some time on the internet reading the basics. You need to figure out the basics first. You've got a lot to learn in that department. At your level, if you care enough about it, you can learn a hell of a lot by just reading.

[mileydog]

Can somebody please tell my the advantages of hiring a financial adviser?

I am on the verge of going with a Merrill lynch adviser but am not really sure of the advantages. I already have retirement accounts setup, mutual funds as well as a few hand picked stock holdings.

Now that I have got married, we have a family income that well exceeds 150k. We own 2 properties and for the past 2 years the rental property does not count as a tax write-off. This really sucks!

Anyways does anybody have any comments / tips for hiring a financial professional.

[persian54]

Originally Posted by Pinarello Rider

I think you need to know what you want the money for. Do you want to buy a house with it? Buy a car? Buy a boat? If you put that in an IRA of some sort, and let it simmer for 40 years, you'll be able to retire a very wealthy man. Do a TON of research on picking a FA though. Read everything you can. EVERYTHING. Then get referrals from friends/parents/employed people. Then pick your investment.

If it were me, I'd buy my house with it, and never have to pay a mortgage again. Some would advise that it is better to invest at 6% annually than pay 5% interest on a mortgage, which is technically true, but I'd rather be debt free...

What good house in a nice area can you buy for 400k....

[Feyd]

Originally Posted by Pinarello Rider

I think you need to know what you want the money for. Do you want to buy a house with it? Buy a car? Buy a boat? If you put that in an IRA of some sort, and let it simmer for 40 years, you'll be able to retire a very wealthy man. Do a TON of research on picking a FA though. Read everything you can. EVERYTHING. Then get referrals from friends/parents/employed people. Then pick your investment.

If it were me, I'd buy my house with it, and never have to pay a mortgage again. Some would advise that it is better to invest at 6% annually than pay 5% interest on a mortgage, which is technically true, but I'd rather be debt free...

Face it... You just wanna pay off your house so you can free up enough cash to buy another $9,000 bike.

Those Pinarellos are mad sexy though... gotta admit.

[Feyd]

Originally Posted by persian54

What good house in a nice area can you buy for 400k....

LOL... gotta think beyond California.

They're everywhere.. besides California and NY.