Ask HN: Steady 4-5% on $5M? • Hacker News Board

Re: Ask HN: Steady 4-5% on $5M?

#31

Post by triyambakam » Tue, Oct 06, 2020, 3:17 AM UTC

marketgod wrote: post #27

I can do 20% on $2.5MM easily with only $500K at risk trading options. Edit: I'd love to hear input on why people are scared of options.

User name checks out!

Re: Ask HN: Steady 4-5% on $5M?

#32

Post by triyambakam » Tue, Oct 06, 2020, 4:01 AM UTC

marketgod wrote: post #27

I can do 20% on $2.5MM easily with only $500K at risk trading options. Edit: I'd love to hear input on why people are scared of options.

Well your username here is well chosen, then :)

(I had a previous comment of the same sentiment that seems didn't fit well here)

Edit: I guess this one doesn't either?

Re: Ask HN: Steady 4-5% on $5M?

#33

Post by bwb » Tue, Oct 06, 2020, 1:13 PM UTC

biolurker1 wrote: post #6

rdtwo wrote: post #5

Real estate should still be a good bet for 4% real. It would be better with leverage if you could borrow at least 50% at some outrageously low rates but it’s not passive.

You can also invest in REITs passively

Taxed as income though

Re: Ask HN: Steady 4-5% on $5M?

#34

Post by cascom » Tue, Oct 06, 2020, 3:13 PM UTC

The first question is 4-5% real or nominal. I.e. 4-5% or ~6-8% nominal?

Re: Ask HN: Steady 4-5% on $5M?

#35

Post by andrewmcwatters » Tue, Oct 06, 2020, 3:22 PM UTC

perl4ever wrote: post #30

andrewmcwatters wrote: post #24

Earlier quoted context omitted.

At 5 million, you're in VITSX, not VTSAX.

If you really care about the difference between 0.03% and 0.04% expenses, then the logical thing to do would be to choose VTI. What's the advantage of VITSX, especially if you have exactly the minimum?

You're either owning VTI, or afaik, automatically moved to institutional shares when you own the mutual fund class. It's not about purchasing at a minimum.

Re: Ask HN: Steady 4-5% on $5M?

#36

Post by 02020202 » Tue, Oct 06, 2020, 3:46 PM UTC

stocks, stocks and stocks. if you want something safe, buy some index. maybe something form a sector you understand a bit about or just go with s&p500, etc.... there is nothing safer than that.

personally i pick my own stocks. so far i am +35% since december and i was at +60% recently. it fluctuates but i am a long term investor so i just chill and don't sweat about it.

in the end it depends on how much work you are willing to "invest". you can flip alcohol or houses or daytrade but it all requires time and effort and it just becomes a job. hence i advocate for long term investing.

Re: Ask HN: Steady 4-5% on $5M?

#37

Post by reducesuffering » Tue, Oct 06, 2020, 6:54 PM UTC

Many comments here are quite inaccurate saying "REIT / Real-Estate, High div stocks, solely VTI/VTSAX." These are not steady 4-5% and have very real risk of losing 50% within a year.

The safest way to steadily return 4-5% nominal is an approximate mix of:

55% VT (Global stocks) 40% BND (Total US Bond Market) 5% GLDM (Gold)

Whether that ends up being a real 4-5% return, as opposed to nominal or a definite 3% real, will depend on inflation.

More info on bogleheads.org