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

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[quote=NickScarfo][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]

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]

As I understand it, longer investment horizon warrants a greater risk tolerance. I'm not living on any investment income and am looking for maximum growth.

I guess 3-4% return would make sense for an equity-based portfolio from which you were drawing down additional 3-4% in income. Otherwise, I don't see where you're coming from.[/quote]

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