How do very high net worth accounts trade?

Discussion in 'Professional Trading' started by arden123456, Oct 7, 2016.

  1. cvds16

    cvds16

    Jesus are you moronic: he had a business, he is not a trader ...
     
    #21     Oct 8, 2016
  2. Mtrader

    Mtrader

    I personally know two who wiped out 8 figure accounts.
    One inherited his money, and wanted to show he was smart.
    The second one made his money in business and thought that he could do the same in trading. It is not because you are a genius in something that you will be in all other things you do. Being a genius is most of the time related to some area, not to all areas.
     
    #22     Oct 8, 2016
    TraDaToR and dealmaker like this.
  3. Mtrader

    Mtrader

    I don't discuss that, I discuss the tax related problems. Your so called 33% taxation, which is completely wrong. The part that you left out now. Your moronic part.
     
    #23     Oct 8, 2016
  4. cvds16

    cvds16

    whatever ... you are an idiot ... this has nothing to do with the guy I mentioned whatsover cause he is not interested in trading ... you just like to hear the sound of your own voice over and over again apparently ...
     
    #24     Oct 8, 2016
  5. Mtrader

    Mtrader

    But you wrote:
    Wonder who the idiot is...
    If you can hear voices if people post here you should go to a psychiatrist as you clearly have problems.
     
    #25     Oct 8, 2016
  6. cvds16

    cvds16

    you keep on ratling yet you don't have a clue whatsoever what you are talking about ...I am not helping him in short term trading that is something you made up in your own mind ... now who needs to see the psychiatrist ?
    there is a name for people like you: internet trolls ...
     
    #26     Oct 8, 2016
  7. zdreg

    zdreg

    you don't trade. you invest.
     
    #27     Oct 8, 2016
    Tim Smith likes this.
  8. d08

    d08

    1 million is not much these days. You can get a decent house in most parts of the world or a poor one in the fancy areas. Then a nice car, a few toys and a few holidays and you're broke.
    I figure you need at least 2 million to live off of and for that you get a life where you carefully watch your expenses (no Bentleys or 3 story houses) but you you're not struggling to pay for food either.
     
    #28     Oct 8, 2016
    Alpha Trader and J.P. like this.
  9. Assuming you're far from retirement age and can't spend principal, $2m will yield maybe 2- 3% taxfree from sorta-kinda safe muni bonds -- i.e. $40- 60k in income. You'd do much better to work in the public sector, spike your pension, retire at age 48 and draw $100- $120k / year for life.
     
    Last edited: Oct 8, 2016
    #29     Oct 8, 2016
  10. Tim Smith

    Tim Smith

    +1. This is the correct answer.

    Once you're in the fortunate position to have millions to worry about, then your priority rapidly shifts from return on capital to preservation of capital.

    Your time shifts away from making money, to preserving it for yourself and future generations, i.e. you spend more time talking to lawyers and accountants than to brokers.

    Your investment portfolio structures very quickly move away from growth strategy to well diversified balanced one. You (or your broker) will spend more time buying bonds and boring large-caps, with maybe a few mid-caps thrown in if you feel like playing on the wild-side.

    Your strategy will rapidly change from "anything goes" to long-only equities and bonds. Messing around with derivatives and FX generally doesn't happen, except maybe as a punt on a small corner of your assets if you fancy a bit of gambling.

    Your investment timeframe rapidly shifts to multiples of years, with maybe a few things held for a few months. But you certainly won't be doing any day trading.

    Yes its boring. But as I said, its all about preservation of capital. You've worked hard to make all that money, most people once they've reached that stage in life just want to relax and enjoy the benefits, and not be kept awake at night.
     
    #30     Oct 8, 2016
    Overnight and cvds16 like this.