250 k to Invest. Need Help With Asset Allocation, & Where to Invest.

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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avi18
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250 k to Invest. Need Help With Asset Allocation, & Where to Invest.

Post by avi18 »

Hi,

I've recently finished reading Tony Robbin's book, "Unshakable", and would like to finally take control of my future, by investing my money, in a way that would guarantee me a very healthy return many years down the road.

In some of Tony's earlier material though, he talked about Sir John Templeton asset allocation secrets, and having a:

1) Security bucket (safer, diversified investments, like perhaps low-cost index funds using compound interest)
2) Growth bucket (higher risk, higher reward investments)
3) Dream bucket (putting money aside to also enjoy life in the process)

Based on your age, and risk tolerance, you'd have to decide what % of your monthly income would go into each bucket...

I'd like to finally put this into action, and would appreciate some help, as i'm not sure where to invest for #1 (Security bucket), and #2 (Growth bucket). What specific funds, etc.

I also understand that the timing of when you buy into the market is obviously very important, and feel like the Canadian market is in a bubble, which seems ready to bust pretty soon... So, would now be a good time to invest in any funds, etc?

I'm 33 years old, and I make about 70 k per year. Currently working to increase that number as well. Have about $250 k to invest.

Considering how the Canadian market is now a days (especially the crazy real estate prices), and the Canadian dollar, in comparison to the US dollar...

What would you guys suggest I invest in? And when?

Any help would be much appreciated! :)
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Peculiar_Investor
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Re: 250 k to Invest. Need Help With Asset Allocation, & Where to Invest.

Post by Peculiar_Investor »

Welcome to FWF. I see you were referred here from the Bogleheads forum, specifically Canadian with $250 k (CAD) to invest. Need help with Asset Allocation. - Bogleheads.org. A number of FWF'ers are also members of the Bogleheads forum, myself included.

I've never read Tony Robbins and a forum search turned up a previous discussion of another of his books, Money, Master the Game - Tony Robbins latest book. A review of that topic might be helpful to get a sense of how FWF'ers feel about Robbins' books and investment advice.

As mentioned in the Bogleheads topic, you might want to read a few things from our wiki, particularly Getting started - finiki, the Canadian financial wiki, Investment planning and Portfolio design and construction are good starting points and might generate more questions to be asked.

I generally concur with the post by GreatLaker on the BH forum as a very good starting point to address your questions.
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planningahead
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Re: 250 k to Invest. Need Help With Asset Allocation, & Where to Invest.

Post by planningahead »

Hello, another good intro series is the investment workshop from millennial revolution. They got mentioned/ recommended by Jim Collins' at one of his blog posts, that's when I start following this relatively new blog.

What I like is they show you how to construct an appropriate asset allocation with Canadian examples, use low cost vanguard etfs available in Canada, show you how to buy via questtrade, and also preach lowering living expenses. You don't have to want to early retire to follow some of their bogle-type advice.

http://www.millennial-revolution.com/investworkshop/

good luck.
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kcowan
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Re: 250 k to Invest. Need Help With Asset Allocation, & Where to Invest.

Post by kcowan »

You are trying to establish an investment strategy which is really good. You need to develop an IPS that reflects your comfort zone. You have been given great pointers from members upthread.

When you have digested all this material, we would welcome you to come back with some specifics.

(BTW I have followed Tony and find him very motivational and funny. But I would not follow him for investing advice. Some of his ideas are valid though.)
For the fun of it...Keith
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