Reply to 25 y/o $4M Net Worth-should I go to law school?

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[quote=Anonymous][quote=Anonymous][quote=NickScarfo][quote=Anonymous]No.

Assume 3-4% growth, not 6-7% to avoid unpleasant surprise (few good investment managers can credibly project 7% going forward)...

If I had $$$ BigLaw is the *last* place I’d want to be for 70-80 hrs a week.[/quote]

3-4% for an aggressive portfolio? That sounds awful. My plan doesn't include any fixed income and may eventually incorporate direct investment alternatives along with equities.

Even 7% would typically be conservative for long run return on equities.

Not sure where your numbers come from...[/quote]

P.s. imo you are also wrong not to have any fixed income, I have never gone all in or out in any one sector. I get your mindset, but looking back on my own investing history and how it worked out (and how others’ I know didn’t), I’m suggesting that you take a wider view unless you’re ok with it all going away more readily than might be the case with more diversification and less speculation.

PP here ... IMO your approach is wrong.    You have way too long an investment horizon to go whipping it out on flyers and hyper aggressive portfolio choices.

If you want to have to go back to work when the next crash hits you, by all means do.  But my approach saved me 50% of the losses, or more, that others had with aggressive approaches.  It’s much harder to make it back after a big dip than it is to avoid biggest dips.

It’s your money. My approach got me to retirement early and I make more now than when I worked with no crazy risk.... 3-4% is the new 6% (return assumptions) for every prudent analyst I’ve read.  Of course in recent years we’ve done much better but if your benchmark assumptions are too high you set up to fail.

:idea: [/quote][/quote]

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