Quote:
Originally Posted by GR45
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. ; )
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Have about 20M now. My advice is to allocate it after some leverage. After leverage say have 30M. 33% leverage is quite conservative.
25% or 7.5M property - 1 for staying. Another 2-3 1+M each ones for investment and rental. Cheaper so more liquid. Would suggest not all in SG. Sorry but i think with networth 20M cannot afford to stay GCB. I will only stay GCB only if my networth is 100M as i believe in at most 20% networth in home.
33% or 10M bonds yielding about 4.5-5%.Do your own 7 year ladder. Can own about 40 bonds. Don't fall into trap of all SGD. Buy the more liquid USD, GBP, EUR, AUD ones. Borrow if you don't want currency risk.
The bond coupons are my daily expenses. About 0.5M should be enough for most people unless you must fly 1st class and change cars, birkins and pp/ap watches regularly.
30% or about 9M. Global equity portfolio. Just dont buy all local stocks. Watch your geographcal distribution too. Watch your equity dont have too much REITs or property. Duplicates with property allocation.
10% or 3M alternatives. For me this is 1M speculative for all those structured notes, EM speculative bonds, currency plays etc. 2M Private equity funds and VCs or even own business assets?
2% or 600K on wants and not needs - 2 cars, watches, jewellery... dont go crazy here.
Hope this helps. Would be good if others share what they do. Like Whizzard?