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Something which is very important to consider is the timeframe. When do you actually need the money? For how long can you leave it untouched?

Given your situation I'd put the vast majority of the money in a bank account or a really cheap money market fund, a certain fraction in blue chip corporate bonds, and an even smaller fraction in shares of stable conservative "boring" companies with a pretty predictable income stream. Like a shipping company with all its ships on multi-year fixed price contracts and the customers having a low counterpary risk, or a utility in a regulated environment, a mining company with fixed price deliveries, and so on.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Thu Mar 25th, 2010 at 08:58:38 AM EST
[ Parent ]
Throw in a basket of sovereign debt for good measure.

But basically, to follow your advice means to stay clear of financial advisors and managed funds and to manage your own portfolio.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Thu Mar 25th, 2010 at 10:40:20 AM EST
[ Parent ]
In 99 % of all cases, financial advisors are salesmen. They work for a bank or a fund and sell their own products to naive trusting customers who believe the bank is some kind of nice utility, doing what's best for the customer. It's like asking Harry at Honest Harry's Used Cars for "advice" on which used car to buy.

Actually, I've visited one of these 1 % of independent investment advisors, who taught me a lot of good basic stuff. I spent maybe 10 hours with him, and in the end he decided to waive my fee if I promised to keep him up to date on peak oil and stuff.

Still, I wouldn't diss all mutual funds. I have some money in one fund, which actually manages to beat its index (MSCI World) year after year after year. Further, the basic fee is not horrendous; 1 %, and it can rise to as much as 2 % if and only if the manager beats his index by a considerable amount.

I tend not to give out investment advice, especially not online, do your own due diligence, etc etc, but if someone for any reason want to put money in a fund, this is one of the best.

Still, I want to elaborate that in a portfolio as conservative as what I suppose JD wants, shares and share funds should only be a small fraction of the total capital.

Anyway, here it is.

https:/www.skagenfunds.com/Funds-and-prices/SKAGEN-Global

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Thu Mar 25th, 2010 at 04:04:58 PM EST
[ Parent ]
Skagen know their business.

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Thu Mar 25th, 2010 at 07:49:55 PM EST
[ Parent ]
Thanks Starvid.  Thanks everyone for the input, infact.

Yes, I'm am not particularly looking for investment advice per se, but rather a list of things that I can bring with me to a meeting with an advisor and ask "what about these vehicles for investment, what's your take?" instead of being at the mercy of a salesman who wants me to invest in American mortgage backed securities.

But I thank every one for their input and think I've gained some ideas to bring to the table as well.

Thanks all

"Schiller sprach zu Goethe, Steck in dem Arsch die Flöte! Goethe sagte zu Schiller, Mein Arsch ist kein Triller!"

by Jeffersonian Democrat (rzg6f@virginia.edu) on Sat Mar 27th, 2010 at 08:41:29 AM EST
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