Quote:
Originally Posted by whizzard
Hi GR45, looks like you can probably retire any time you want.
I would suggest you open some private banking accounts, if you have not done so already and get the bankers to sit down with you to evaluate your financial goals and your risk profile and for them to advise you on what suits you. Don't rely on just one bank because you need to compare notes and compare the quality of the advice. Then mull over their advice and talk with trusted friends. You don't need to invest immediately.
Secondly, invest in only what you fully understand. Forget about the esoteric stuff with high returns if you don't really understand what they are all about. I buy stocks but I don't buy speculative stocks because I believe they are prone to being manipulated by insiders. They may offer spectacular returns but that is a risk I am not comfortable to take. At least with blue chips, if you get the timing wrong, you can still wait for it to rebound and collect your dividends in the meantime.
Also, if you have no idea, leave the cash sitting in the bank. At least it's safe there. I have left my cash sitting in the bank because I have no conviction at the moment on where the markets are headed. We don't need to be invested at all times unlike the professional fund managers who need to beat the index. I remember during the recent global financial crisis, stocks were so cheap but as I was already invested, I didn't dare to buy too much even when I had some spare cash to do so because I was already sitting on a portfolio which has just fallen in value. However, if I was lightly invested then, I would jump in to scoop up shares on the cheap. This taught me to always have some gunpowder on hand and that it's OK to stay out of the market because they will always go up and down and if you miss one round, there's always the next round.
No one person, even if he is a professional investor, knows everything in the investment world. You will have your own biases and favourites. Stick to your winning formula that has gotten you to where you are today.
Lastly, good luck! 
P/S: If you need someone to refer you to some private bankers, you can PM me. At least I get to receive some introduction gifts!  |
Dear Whizzard,
Grateful you took time to reply this newbie. : )
Private banks sound great but I am sure they will find me too dumb and conservative. On the other hand I have had it with fresh faced 20-something RMs who have been lecturing me about the world economy, reciting from the same play book and in the end, there is always a "special" investment product created for people "just like me".
Full and total retirement is not going to happen anytime soon. Ours is a small and personal business and we have to be at least partly hands-on for things run smoothly. But that said, we do have experienced staff taking care of the daily routines. We are not overworked and have time to exercise, shop, eat, travel and do stuff with the kids. I do not mind our life as it is now. As you pointed out, it takes discipline not to do something with the cash. That is one of the reasons I ended up with my properties. And collecting rent is getting to be boring. I never thought I would say that, but it is true. Properties are incredibly illiquid and there is not much you can do with them (except to sell them and get back more cash !). My tenants pay their rental regularly and I no longer check on them.
And seeing you started the topic "Calling it Quits!", what do you think can be done in semi-retirement with, say $10M or $20M and reasonable returns on your investments. One can only travel or scuba-dive/ski/golf so much. ; )