[rubicon]

The problem with investment advice is that by the time it reaches a client it is old news. This is why being one exam short of completing a five year investment designation I pulled back.

The OP presents a case of investing 250k pulled from an investment to be re-invested.

I personally would not pull 350k from my IRA. However if I had found money equal to250k it wouldn't go in CD annuities, life insurance or bonds. The latest news from Burton Malkiel author of the famous "Random Walk suggest investing in dividend stocks. However if you read all of these post you read a number of posts wherein the poster felt that not all didvidend stocks are equal. So there you go. You cannot just get a tip on dividend stock but you must research which stocks.

I am not as risk adverse as some. In fact my investment people could give over the fact that my choices more likely fit in the 20 something category than....well my true age and so i had to modify my portfolio.

Bottom line for me would be dividend stocks. Like a number of people here I built ladders which have been a blessing

[l2ridehd]

I agree with most of you. I have been moving my asset allocation from about 50/50 to 65/35 on market dips. I use mostly very low expense Vanguard index funds to keep it simple. Also moving some bond money into dividend stocks. I did one mortgage with a good loan to value with a 10 year balloon. Would like to find another. Ist mortgage only, 60% loan to value, 10 year balloon at 6%. Actuals on the closing cost.

[kentucky blue]

Originally Posted by KYWildcat

I am currently a residential real estate appraiser. I think I know something about my local market. I am a "hard money" lender. I currently have five (5)
1st mortgages that are 1-3 year notes with the entire principle payable as a baloon at the end of the specified term. My requirements are simple, 2-3% closing cost up front, 11.99% interest only payable on the 1st of each month. No greater than 60% loan-to-value ratio. I am the 1st mortgage! Also, I must inspect the property and do my own internal appraisal report. (to myself). No appraisal fee required! Must be properties that I would personally be comforable in.

I have turned down many request. The request are presented to me by a couple of mortgage brokers that I do business with. The typical borrower is someone that has a recent mark on the credit score, has a long term job employment history and can restore their credit score in a year or two. All of my borrowers have been great as far as payment history. Only one paid late a couple of times but my late charges went out and she got the message. She paid the loan of $160,000 off about 18 months ago.

I've carried lots of mortgages over the years,but only on property that i own and have sold.Your terms and interest rate would be extremely difficult for me to accept,but there are desperate people out there and you fill a need.Have owned Vanguard funds forever,but my returns have not been great,so i own mostly blue chip companies that pay attractive dividends.I realize that my aggressive portfolio is risky,80% stocks 20% bonds, but it's paid off bigtime . Plus, it doesn't hurt that 2 of my kids,a son and daughter, are investment bankers in NYC,and give me advice constantly.I usually listen to them,but my son was very high on Steve Jobs and Apple 5 years ago,but i didn't invest because it paid no dividend....................not smart

[John Maiorino]

Originally Posted by cabo35

If you pulled 250k out of the stock market....where would you put it?

I know its tempting, but, please play nice with the question.

Consider:

Preservation of wealth in the short and long haul.

Safety of investiments?

Return on investments?

Real Estate flips - hot market in Florida paying 12% min return

[kentucky blue]

Originally Posted by John Maiorino

Real Estate flips - hot market in Florida paying 12% min return

Great idea,the real estate market in my area, Lexington, has bottomed out and is currently very active.I recently sold a rental home after it being on the market for less than a week.But since we only live once, take that $250,000 go for broke and think outside the box.Take it all and bet on Bodemeister in the Preakness Stakes,he should have won the Kentucky Derby, but got nipped at the wire.Since the Preakness is a shorter race,Bodemeister will win going away.If you want to add some excitement to your life,i think this could be the solution.It's better advise then i've gotten from most of my financial advisors

[LABSX2]

Originally Posted by cabo35

If you pulled 250k out of the stock market....where would you put it?

I know its tempting, but, please play nice with the question.

Consider:

Preservation of wealth in the short and long haul.

Safety of investiments?

Return on investments?

Back yard.

[CaptJohn]

Since this thread dates back to 2009, my question is where is the 250K now and what is it currently worth?

[vinnie]

I would give my money ot Creative Planning. They were rated #1 in the country independent Investors. Low cost, low risk.
Go to Youtube and watch Peter Mallouk, the CEO talk about investment strategy.
Their overall theory is that the market will go down and then up and then down and then up. No way to really time the market.
Their fees are low... I have my money with Ameritrade, Creative just does my investing for me. My time is worth something andI would not operate on myself when I can pay a doctor to do it professionally. Only my opinion

[donb9006]

To the OP...should have left it where it was and you'd have made money...I bet you lost...am I right?

[villagetinker]

I work with a paid advisor (Amerprise), and am looking at in excess of 20% gain this year. My advisor has done a wonderful job over the later 7-8 years, to the point that when the market crashed (40% losses typical), mine were much less, and I have made all of that back.

Bottom line find an advisor that you can deal with, tell him you goals and what you are comfortable with in terms of risk, and listen to what he says. I would stick with a larger firm.

[Minnesotalyn]

We left our in, and got it all back plus we've been living on it for 5 yrs.

[billethkid]

Originally Posted by ricthemic

Looking at existing houses now in TV. Does it make sense to buy the house cash by taking out of stock market? Planning on six months in TV. Have existing house up north paid off. Leaves us with a decent pension, SS and some cash.

If one can have a mortgagewith interest rates 2-5 points below what can be earned in the market why work to pay cash for anything?

While it is a persoanl choice, it seems there are many retirees who "feel" more comfortable paying off the house. And if the "feel" is that important so be it. Or it may be one's goal to not have a mortgage...that is another choice.

But if I can have a mortgage AND CONTINUE growing the nest egg....that is my choice.

There is plenty of time to pay off the house...or my survivors can handle it!!

btk

[billethkid]

Originally Posted by CaptJohn

Since this thread dates back to 2009, my question is where is the 250K now and what is it currently worth?

Yup let's hear the results?

btk

[jimmy D]

Who would guarantee 13 %. It reminds me of who are you kidding, if you could get 13% guaranteed ?????? Well just forget about it is not happening. come up with some other numbers and it may work.

[Campbell soup]

I took a large amount out of the market in August 2007 when the market was peaking. I paid off my house in Michigan it was one of the smartest things I ever did as it just gave me a good night sleep......
As it is peaking again...I may pay off the house in TV this time. Don't like mortgages or car payments.....good luck.