Starting BB analyst, what to do with 400k?
Just found out for the first time that I have 400k of stock in a single f50 company (don't want to get into it). I've been in the upper middle class or at least I thought so (thanks to good raising by my parents) my entire life. I'm 22 years old and about to start working full time at a BB. Should I get some sort of money manager or just diversify and hold. Any other investment ideas that don't take up much of my own time since I'll have very little of it.
buy a ferrari instead
hookers
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Not trolling. I'm the finance guy in my family at 22, as funny as that sounds. I have complete control as of now and can invest it in whatever I want. Don't want to explain why it's not properly invested and is in one stock. I was asking this forum for some ideas of stuff to do with it with little overhead management. I have experience in investing in stocks but don't think my job will allow me to actively trade or that I'm good enough to. That's why I'm asking this forum of ibankers what they would do if they were in my place.
Theres always 2 shares of BRK.A
This is a good idea.
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This should probably be in the section for hedge funds or something. Traditional IB has little to do with asset or portfolio management.
Diversify and hold before you start working, always a huge pain to buy and sell stuff once you start working (grey lists, approval procedures, etc). If you don't feel competent enough, read up or get a PWM. I wouldn't even think about actively trading - you won't have the time and might want to do something else in your free time.
At my bank you cannot invest if you do not have clearance from the compliance department (and it is very unlikely that they would allow me to, given that I do country coverage on a whole country). I can only put my money in funds.
same rule applies pretty much everywhere
Leave it where it is for now and continue living like you don't have shit.
Agree w/ the second part of this. Don't leave the money in one equity. Go read up on a good RIA in your area or just use a BB PWM person. Buy yourself one cool gift, then leave the rest.
Good point, I should've corrected myself. Do not leave it in one single stock is good advise. What you invest in should be an educated decision.
Buy a global diversified equity ETF and ignore it.
Buy a cash cow you can control.
Buy a couple Pateks
Choose how risky you want to be with it..very high level. For instance 50% stocks 50% bonds (this would be conservative).
Then go out and find a good stock ETF (like VTI, VYM) and a good bond ETF (don't know any) and buy them. Look for ones that are well diversified and own a lot of different securities but have low management expense ratios.
Agree with @"EuroLocust" get yourself a PWM and get that diversified before you start work and they slap all sorts of restrictions on your ability to invest.
400k is not enough to have a "PWM" or "PB". I'd find a FA at your firm and work with them
Not true. You can get into Chase Private Banking with around $400,000 especially if they know you are going to be growing your personal wealth through BB employment. The hard and fast $$ amounts are malleable for those in fields with high earning potential. They want to get you early so you'll stay later.
market looks over-extended. I'll dump everything in equities now and wait.
this.
also, having all those eggs in one basket is incredibly risky and unnecessary for the returns you're getting.
No one else thinks this is good advice?
Regards
i am personally on a risk off mode, not even switching to alternative investments, but holding purely cash. Granted OP could diversify and take a lesser hit if shit does hit the fan, but i doubt he has the time to do so and that takes a fair bit of experience.
could you get into Chase PB with 100k?
if you show pics of your account and give your account information i'll be able to help. there's a nigerian prince looking for assistance in forming a new company
Did you not have to sign a disclosure agreement saying what companies you own, pretty sure I'm only allowed to invest in funds rather than individual companies for compliance reasons.
Buy a chic fil a franchise
Believe it or not, I've heard it's super, super hard.
"Chick-fil-A hand picks their operators, about 75 per year, from over 20,000 notices of interest per year. That's less than .05%." Not an easy one to get into, plus I heard they have this thing against owners having too many units. Supposedly it's not like McDonald's or Subway or some small, growing franchise where the sky's the limit and you can have 20-30 units or more.
To add to that, you can't just invest in a Chick-fil-a, you have to be the operator and work full-time...so he would have to pass up on finance, which he probably wouldn't want to do.
Regards
Total return swap, that's the way to go!
www.reddit.com/r/personalfinance is super helpful
Sell the stock, go to vegas, put all on black. Repeat until multimillionaire. If you lose the $, big whoop, you didn't know you had the money anyways
Put it all on "00" noob. 36-1
$14,400,000
Then buy 10 Mcdonald's and retire.
I would look into seeing someone at Edward Jones. I inherited some money a few years back and invested with him. I have been very pleased with his performance. I have 3 accounts, one an IRA and the others I believe trading accounts of sorts (yeah, I should probably know a bit more than this). Usually 10% return and last year was a stellar 20%. If I knew more about equities, maybe I'd do it myself but yeah, all I know is commodities. A lot of guys at my work manage their own portfolios, though.
I met and talked to Dan Truett, the son of the one who started it. He operates a Chick-Fil-A in Columbus, Georgia, where I used to live. I also heard that IF you get selected to open a franchise, they tell you where you're going to open one but they help you financially and get you fitted out in a turnkey operation. There was a guy in college who worked at Chick Fil A over the years and was looking to open a franchise if they'd let him. He's an operations manager there now, whatever that is exactly (retail side or corporate, idk)
buy 10,000 of spy every month and once u start making decent money continue the habit, so basically it will force u to get in the habit
it will also keep you liquid in case you need to buy a place to live etc have unexpected expenses
I think you should sell all of your shares in said company and invest in holograms, have your house full of different celebrity holograms. You can have programmers continually working on these different characters so they are always evolving and acting different. For example, one morning Tina Fey and Dr. Dre are eating breakfast while Ron Burgundy is doing yoga when you wake up.
Now is that something you might be interested it?
In all seriousness, the main point is that you won't have enough time to manage that money if you are working as a BB analyst. If it were me, I would value the removal of stress and time spent investing that money so I can enjoy life more. So again, find an investment vehicle (no, that does not mean a Ferrari) that you can put your money in and not worry about for the near-term while also knowing that you will be receiving appreciation of that investment. I think BRK.A is a good idea as it is a conglomerate that is already diversified and has some of the greatest investors (buffet, munger) working the portfolio.
This also depends on what you want to do with the $400,000. What are your goals with this money, and how aggressively will you need to invest it in order to reach these goals?
Move it into 50% Blackberry and 50% Best Buy stock. I hear that's the future.
But seriously, you took at least one portfolio theory class in undergrad, right? Invest in the market portfolio, and adjust your risk to your desired level with the risk-free rate. CML line for the win. That'll take you about 5 minutes, and you don't have time as a banker to be doing hardcore Asset Management.
Buy gold, and then some silver, but then more gold. Always bullion only (no paper). Wait for chaos to ensue ==> profit.
Buy 40 emini s&p 500 futures contracts and roll them over at each expiration. That will turn into well over 1 million in 5-6 years. With the remaining 350,000 k buy long term sp 500 index call options and put the rest into the mutual fund fairholme capital. Its ran by Bruce Berkowitz, one of the best in the business
Equity is too high/ real estate is too high/ FI is too high
Sell all - put all in some short dated govis. Wait for the collapse, bond expire; put half the money in a mix of equity and FI trackers Rest use to buy a house.
Quit the BB gig, go to a developing county with nice weather, and reap the benefits of the IQ advantage given to you. I would wish you good luck, but you won't need it.
Pay off debts. Riskless 4-7% after tax return. You may have to park all of your securities with your bank for compliance purposes. If not, create a brokerage account now (or wait, if the stock isn't something highly volatile). Buy as few ETFs as possible that give you as much global diversification as possible. Preferably all equity. Maybe have 25k cash, and 25 in guaranteed interest-bearing securities, like a bank CD or something (something that you are able to hold until maturity and make sure of that, so not a bond ETF or the like). This is your best option given: 1) lack of knowledge about investing, 2) lack of time to learn about investing, 3) that even if you had time to learn, it can be a labor intensive process that you still don't have time for.
Penny stocks, brother
This. Also load up on Bitcoins.
This might be the worst thread in WSO history in terms of quality of advice
I think you should buy a small central London studio in London and just rent it out to some well paying international business students who need a place to stay close to LBS or one of the Universities...easy money, tax free (possibly) and good rental yield depending on where you purchase...that's just what I would do with it anyway...and most of the time most of London property just keeps on rising in value and the demand is just completely outstripping supply (although be careful and if you do go down the buy in London route, try to avoid paying more than $1,400/ sq ft...the property market is quite overheated and I think it will explode soon somehow)!..
Good luck
Surprised no ones dropped Lumina Investments
Take a trip around the world. Stay in hostels. Pack light. Meet loads of people. Keep a journal.
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