What would you change if you had a 9-figure portfolio?

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johnanglemen
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What would you change if you had a 9-figure portfolio?

Post by johnanglemen » Mon Jan 02, 2012 7:21 pm

For example:

* Would you still have the exact same allocation strategy (eg age in bonds), or would you invest more conservatively?
* You'd probably want to store your money with CDARS rather than at a single bank so it's FDIC insured, right?
* How would you even invest the money? Wouldn't millions of dollars in transactions move the market?
* Would you hire any professionals or continue to do it all yourself?

livesoft
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Re: What would you change if you had a 9-figure portfolio?

Post by livesoft » Mon Jan 02, 2012 7:24 pm

Among other things, I would not be worried about FDIC insurance because I would cut out the banks as middlemen and own US Treasuries directly.
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johnanglemen
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Re: What would you change if you had a 9-figure portfolio?

Post by johnanglemen » Mon Jan 02, 2012 7:27 pm

Why does the size of the portfolio affect the decision to own treasurys directly (or does it not?)?

What would your "among other things" be?

NERD777
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Re: What would you change if you had a 9-figure portfolio?

Post by NERD777 » Mon Jan 02, 2012 7:31 pm

I would invest a bit more conservatively. Probably cut down my equity exposure and throw it into Corporates and TIPS. And it would not move the market.

johnanglemen
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Re: What would you change if you had a 9-figure portfolio?

Post by johnanglemen » Mon Jan 02, 2012 7:34 pm

Buying millions of dollars of, say, VBR at one time wouldn't be an issue? The volume is 150,000 a day...

HelenaJustina
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Re: What would you change if you had a 9-figure portfolio?

Post by HelenaJustina » Mon Jan 02, 2012 7:36 pm

Is that low 9-figure or high 9-figure :lol:

The Wizard
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Re: What would you change if you had a 9-figure portfolio?

Post by The Wizard » Mon Jan 02, 2012 7:36 pm

I'd stay with what's worked so far.
$500M in assets is just proof that my method works.
But I would switch to flying first class at that point....
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natureexplorer
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Re: What would you change if you had a 9-figure portfolio?

Post by natureexplorer » Mon Jan 02, 2012 7:39 pm

I would switch to a more conservative portfolio. I would also switch to Vanguard institutional shares.

johnanglemen
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Re: What would you change if you had a 9-figure portfolio?

Post by johnanglemen » Mon Jan 02, 2012 8:05 pm

Also, what would you do about the SIPC limit of $500,000?

natureexplorer
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Re: What would you change if you had a 9-figure portfolio?

Post by natureexplorer » Mon Jan 02, 2012 8:48 pm

johnanglemen wrote:Also, what would you do about the SIPC limit of $500,000?
John, when you hold Vanguard mutual funds at Vanguard directly, is SIPC of relevance?

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momar
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Re: What would you change if you had a 9-figure portfolio?

Post by momar » Mon Jan 02, 2012 8:52 pm

With that much money, I would invest very aggressively. Extreme risk and volatility can be tolerated; even a drop of 90% in the portfolio leaves one financially independent.

Might as well go for 10 or 11 figures!
"Index funds have a place in your portfolio, but you'll never beat the index with them." - Words of wisdom from a Fidelity rep

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frose2
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Re: What would you change if you had a 9-figure portfolio?

Post by frose2 » Mon Jan 02, 2012 10:07 pm

What's with all these fantasy posts in the new year? Being 20 again, escaping from America to the country of your choice, and now this. Hmmm.

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ria26
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Re: What would you change if you had a 9-figure portfolio?

Post by ria26 » Mon Jan 02, 2012 10:14 pm

I would have 20% invested in the United States, 20% in Canada, 20% in Switzerland, 20% in Australia, 10% in Brazil, and 10% in China. I would allocate 60% in fixed income, 30% in equities, and 10% in real estate in each country.

superthan34
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Re: What would you change if you had a 9-figure portfolio?

Post by superthan34 » Mon Jan 02, 2012 10:34 pm

I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...

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Liquid
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Re: What would you change if you had a 9-figure portfolio?

Post by Liquid » Mon Jan 02, 2012 11:51 pm

superthan34 wrote:I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...
+1 :lol

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Whiggish Boffin
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Re: What would you change if you had a 9-figure portfolio?

Post by Whiggish Boffin » Tue Jan 03, 2012 12:15 am

I'm now doing a Swensen (30% total US stock, 15% developed foreign stock, 10% emerging foreign stock, 15% US REIT, 15% nominal Treasuries, 15% TIPS).
With > $100M, Maybe I'd do a Taleb: 74% inflation-linked bonds of several nations (safe income), 8% venture capital (pays in a boom), 8% deep out-of-the-money puts (pays in a crash).
With the remaining 10%, I'd buy a really nice workshop (like Jay Leno's or Burt Rutan's), and send a thank-you annuity to my first girlfriend.

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rob
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Re: What would you change if you had a 9-figure portfolio?

Post by rob » Tue Jan 03, 2012 1:28 am

I would keep the same allocation apart from the percentage of stock and bonds... I would not drop below @20% stock but would reduce from my current 70% stocks. Just no need for the risk - boring but there ya go.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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Quasimodo
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Re: What would you change if you had a 9-figure portfolio?

Post by Quasimodo » Tue Jan 03, 2012 8:35 am

I'm guessing there would be unfamiliar issues like security of family members from kidnap and ransom threats, and an ability to donate very substantial sums to charities that would introduce new challenges.

I'd probably seek out some sort of professional advice.

John
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VictoriaF
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Re: What would you change if you had a 9-figure portfolio?

Post by VictoriaF » Tue Jan 03, 2012 8:40 am

HelenaJustina wrote:Is that low 9-figure or high 9-figure :lol:
It's the opposite of 6-figure :lol:

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fredflinstone
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Re: What would you change if you had a 9-figure portfolio?

Post by fredflinstone » Tue Jan 03, 2012 8:50 am

I would buy a really nice home in Hawaii. Other than that, no change.

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Re: What would you change if you had a 9-figure portfolio?

Post by Grt2bOutdoors » Tue Jan 03, 2012 9:14 am

I would establish a foundation for philanthropic purposes focused on U.S.(read: domestic) social concerns.
I would invest 30% in diversified dividend paying global equities.
I would place 70% of the pool into a mix of cash, 1-10 Year U.S. Treasuries.
The objective would be to spend 3% of NAV annually.
Oh, I would change employers and become self-employed.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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goodenyou
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Re: What would you change if you had a 9-figure portfolio?

Post by goodenyou » Tue Jan 03, 2012 2:28 pm

My wife....just kidding....that question was ripe for that :D

deathb4disco
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Re: What would you change if you had a 9-figure portfolio?

Post by deathb4disco » Tue Jan 03, 2012 2:36 pm

I have a client with a 10-figure portfolio. He invests pretty conservatively: lots of high-grade muni bonds and cash. Maybe 10% is in stocks.

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rob
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Re: What would you change if you had a 9-figure portfolio?

Post by rob » Tue Jan 03, 2012 2:40 pm

goodenyou wrote:My wife....just kidding....that question was ripe for that :D
Would be a pretty expensive divorce.... You would be left with @ 4.5-figure portfolio anyway :lol
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

KyleAAA
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Re: What would you change if you had a 9-figure portfolio?

Post by KyleAAA » Tue Jan 03, 2012 2:42 pm

I would certainly invest more conservatively. I doubt I'd go about 50% stocks.

rec7
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Re: What would you change if you had a 9-figure portfolio?

Post by rec7 » Tue Jan 03, 2012 2:44 pm

At that point maybe 100% in Vanguard Short-Term Bond Index Fund Admiral Shares or Vanguard Short-Term Tax-Exempt Fund Admiral Shares I can't make up my mind. While I am at it fill up several local credit unions also.
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ascenzm
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Re: What would you change if you had a 9-figure portfolio?

Post by ascenzm » Tue Jan 03, 2012 3:07 pm

johnanglemen wrote:For example:

* Would you still have the exact same allocation strategy (eg age in bonds), or would you invest more conservatively?
* You'd probably want to store your money with CDARS rather than at a single bank so it's FDIC insured, right?
* How would you even invest the money? Wouldn't millions of dollars in transactions move the market?
* Would you hire any professionals or continue to do it all yourself?

Well, I would change my job status from employed to un-employed! :)

Mike
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Watty
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Re: What would you change if you had a 9-figure portfolio?

Post by Watty » Tue Jan 03, 2012 3:10 pm

At that level your investment goals would mainly estate planning so your investments strategy would also need to change.

protagonist
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Re: What would you change if you had a 9-figure portfolio?

Post by protagonist » Tue Jan 03, 2012 8:16 pm

I would buy a new sofa.

CoastieLifer
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Re: What would you change if you had a 9-figure portfolio?

Post by CoastieLifer » Tue Jan 03, 2012 10:08 pm

Three Funds:

45%: Munis
45%: TIPS
10%: Total StockMarket

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abuss368
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Re: What would you change if you had a 9-figure portfolio?

Post by abuss368 » Tue Jan 03, 2012 10:39 pm

I might consider investing the same in terms of allocations. You have to figure the income alone from dividends, would more than pay for your lifestyle.

That alone should allow you to weather any storms.
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protagonist
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Re: What would you change if you had a 9-figure portfolio?

Post by protagonist » Wed Jan 04, 2012 12:16 am

This may seem cynical, but I would guess that most people with 9 figure incomes do not have to think about where to PUT their money....since they are manipulating the markets.

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