with a $12 MM portfolio, wot do i NOT want it invested in?

[Sebastian23]

I am a finance major, and currently my father is planning his retirement. We have hired a money manager to invest $12 million CDN for the time being in t-bills. It yields roughly 3.755 % p.a. and it will be invested for the short-term and matures in 60 days. Later on we plan to either invest in real estate, however I was considering keepin mine in a portfolio that is well diversified. I do not want to sacrifice principal but I would like to know wot is the most tax efficient way of generating income from roughly my share of roughly $4-5 MM after tax could be. My objective is growth of income... maybe capital appreciation, however i want to take conservative level of risk & return, as this portfolio will finance my brother, sister and myself's future needs.

We don't intend on spending recklessly and this is what my father leaves us, wot kinds of mutual funds should be look at and wot kinds of questions should we ask the money manager? Also is it best to reinvest all proceeds back into equities?

This $12 MM was generate from a capital gain that my father made on a real estate deal, I want my share to grow over the span of 30 years and more possibly. I'd like it to appreciate and grow with inflation. Wot kinds of things should i know?

The courses i take at the University and my profs don't seem to be helpful, could i please get some of your insights especially if you have been working in the field of finance.

[Cunard]

u got 12 mil to invest and your asking RD? :sarb:

[sameer]

diversify your portfolio. something like 20% bonds, 80% equity. and within the equity do about 50% domestic and 50% international. split the domestic into small cap, large cap, and maybe even an REIT. Internationally put some in europe, asia, japan, and emerging markets. seperately you may also want to put some in commodity funds.

you can achieve this kind of diversified portfolio with mutual funds. no stocks needed.

[reaz]

yea.. for you mutual funds would be the easier way to go.. i think vanguard has good index funds that you might want to read up on.. index funds are low expense mutual funds and provide good returns.. for higher returns you have to take the hit of a higher expense rate but you have the chance of higher returns..

[sameer]

index funds are good in certain areas. in large cap domestic stocks they have shown to beat/rival managed large cap funds. but in small cap funds they lag behind for a variety of reasons.

international stocks there arent many index funds so its fine to take a managed fund. for europe you can get an index fund.

[Sebastian23]

thx

realistically speaking, i know the financial services sector has outperformed the board S&P TSX composite index over the past while, is there reason to believe that financials will take a downturn?

Also is a return of 12% p.a. realistic if my objective is growth of income and income over the span of 30-40 years.

I am 24, by the time im 60 I'd like my share to appreciate to 80 Million, if all goes well. Does that sound conservative / acheivable, considering that the markets will be flat for the next little while, and the future seems really uncertain. Any way to hedge my portfolio to yield that kind of return?

[sameer]

thx

realistically speaking, i know the financial services sector has outperformed the board S&P TSX composite index over the past while, is there reason to believe that financials will take a downturn?

Also is a return of 12% p.a. realistic if my objective is growth of income and income over the span of 30-40 years.

I am 24, by the time im 60 I'd like my share to appreciate to 80 Million, if all goes well. Does that sound conservative / acheivable, considering that the markets will be flat for the next little while, and the future seems really uncertain. Any way to hedge my portfolio to yield that kind of return?
one word: diversify.

i mentioned how above.

[bigkid]

Invest it in something to make a difference

help ppl, enjoy life, make some money while your at it.

Scared money, dont make money (Roscoe P. Coldchain)

Also, it depends on if you want to be a useless wealthy person
or someone who makes a difference in the economy and your
community firsthand, and not through some second hand investments.

We can chat some more but not for free, i really dont cost much
considering your sitting on 12mil