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Would you invest any differently if you had $10 million?

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  • #31





    50 million just not enough to take the plunge? 
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    If I had a 5% allocation to RE.  With a 10 Million portfolio, that is $500K.  With a $300K primary residence (counted as a RE allocation), though not a ‘investment asset’, then you have $200K left with opportunity to have RE as an ‘investment asset’.  Not thinking I would get the diversification and risk/reward for the additional time for what is essentially a small part of the portfolio.  REIT in taxable, no thank you.  Not worth the hassle relative to the overall portfolio.
    Click to expand...


    You said nine figures in your post (i.e. one hundred million).

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    • #32
      We passed $10M 2 yrs ago and am 80% real estate, 20% stock market. Not planning on changing allocation.

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      • #33
        Maybe. If i changed it might be more due: 1. age 2. needs
        One thought: If you won, stop playing
        Another thought: You have a huge pile of FU $, you can “afford” to keep in the game if you wish. If half drop, so what?!!
        I “think” i will stay 70:30 stars AA (70% stocks) but.......
        I am not arrogant enough to think i will know.
        Will I get to 10M? maybe. will i alter my AA? maybe

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        • #34
          Maybe. If i changed it might be more due to : 1. age 2. needs
          One thought: If you won, stop playing
          Another thought: You have a huge pile of FU $, you can “afford” to keep in the game if you wish. If half drop, so what?!!
          I “think” i will stay 70:30 AA (70% stocks) but…….
          I am not arrogant enough to think i will know.
          Will I get to 10M? maybe. will i alter my AA? maybe

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          • #35
            At $100 Million, maybe $5 million towards RE......  It would requiring me winning a $250 million'ish lottery.  I'll be sure to create a post on this website if this were to occur.

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            • #36


              I do and will continue to reduce exposure to risk assets as my nest egg grows. At $10M, I would be 40-50% in stocks.
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              No worries about future inflation? (just asking, not predicting it)

              Stocks are pretty inflation proof (vs bonds and cash)

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              • #37





                I do and will continue to reduce exposure to risk assets as my nest egg grows. At $10M, I would be 40-50% in stocks. 
                Click to expand…


                No worries about future inflation? (just asking, not predicting it)

                Stocks are pretty inflation proof (vs bonds and cash)
                Click to expand...


                I think that a 50:50 portfolio, with rebalancing, would provide the necessary inflation protection, in addition to SORR/downside protection.

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                • #38
                  No.
                  Providing I could convince my better half to not spend it.
                  Community property state which translates into Texan as ripe for the spouse.

                  Separate account 60/40 and let it ride. She can spend the annual income if she desires. Probably a compromise that will fly. If I’m lucky, she will let me fly too! Just park my “beater” in the econo lot. She will get tired of spending. She always does. Bought her a new IPHONE and she kept her 4S. Spending would change, not the investment.

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                  • #39




                    No change. Why would I take “less” risk when I have more of a cushion from market fluctuations given larger portfolio?
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                    That's how I see it.  If I'm happy with my asset allocation now, why wouldn't I be happy with it if I suddenly became much wealthier?  There would be the same opportunity to grow the wealth even more, and less of a downside if the market tanked.  I'd just stick with my current plan.

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                    • #40
                      @artemis,
                      “why wouldn't I be happy with it if I suddenly became much wealthier?”

                      Risk capacity
                      Risk tolerance
                      Risk need

                      One’s risk profile COULD change. The first two probably increased, but the third one simply led to the conclusion that no change was desired either way. That is a personal choice. Some would choose more agressive or more conservative. $10mm changes one’s perception. Glad you are comfortable. That’s a good thing.

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                      • #41
                        Also some would argue with a doctors salary it’s harder to come back from a $5 million dollar loss as compared to a 500k loss so wealth preservation would have a higher priority.

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                        • #42




                          Also some would argue with a doctors salary it’s harder to come back from a $5 million dollar loss as compared to a 500k loss so wealth preservation would have a higher priority.
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                          Disagree, portfolio returns will be doing to heavy lifting.

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                          • #43
                            I do think a fair bit about my asset mix but I don't feel too strongly that I should change anything at this moment.  My investment policy statement has a plan for a slowly growing bond percentage, but that plays out over the next 10 years.  I am thinking about staying the course without growing the bond percentage, but I will have to think longer before rewriting my IPS.

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                            • #44




                              We passed $10M 2 yrs ago and am 80% real estate, 20% stock market. Not planning on changing allocation.
                              Click to expand...


                              I'm always curious when I hear of physicians heavily tilted in RE.

                              How did you do it? Commercial properties? Multi family? Direct ownership? or do you mean REITs?

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                              • #45
                                Typically it takes less than two years to recover from a recession.  James Cloonan with the American Association of Individual Investors argues in favor of keeping 2-5 years of living expenses in cash or cash equivalents (laddered CDs, Treasuries, high yield savings account, etc.) and keeping a higher allocation to equities with the rest of your portfolio.

                                We plan to sock away three years worth of needs (not wants) in cash equivalents starting three years from target retirement date (add a year's worth of cash per year for the last three years).  If things go well in the market, spend from equities.  If the market crashes, spend cash and don't touch equities until the market recovers.  Tighten the belt, travel domestically instead of internationally (or travel to places that are bargains because the economy is trashed), etc.  If this time the market doesn't recover within three years, we may have bigger issues.

                                We plan to pay off the mortgage, have fully funded 529s, and generally get monthly obligations as low as possible before retirement.  That means monthly needs should be significantly lower than monthly wants.  Having $10M in liquid net worth wouldn't change the plan.

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