Frank,
I am very pleased to psot at your thread. Thhis topic is very intersting
and long over due on SI.
I am self emplyed, 46 years old, married for 17 years, two children
doughter 15, studies in a boarding school in Switzeralnd, and
a son 10 years will be off to Gordonstoun School in Scotand in a
year time. My wife and I decided to invest on our childrens education,
rather than leaving them an ineritance.
I have figuered we will be spending $400,000 by the time they fisnish
university. This is one of the fixed expenses we have to cope with.
Neither my wife and I are big spenders. We live well, but we spend
carefully. We buy quality, and we make it last long, so we ammortize
everything. We have no debits and no expensive hobbies. My only
pass time is golf.
I have been fully vested since 1972 when I bought KO. My investments
are as folows:
1. Rental property. 60%.The rents are barely sufficent to cover the
taxes and expenses. we look at net return of 1.5% per year. Capital
apprecaiton,
15 to 20% per year.
2. Bonds, 30%
Bonds are in three currency, US DOllar, Italian Lire, Deutch Mark,
and Swiss Francs. I am not keen on AAA bonds.I have 50% invested in AAA
and 50% on BB bonds, such as Brazil,Argenina, Israel Bond (yields 15%
on Lit. 10% on USD,9.5% in Deutch Mark, etc.) So I use bonds as a means
of income, and sink the div. into US stock market.
3. . Stock market. 20%
a. US Stocks. 80%:
70% blue chips: KO, GE, MERCK. SGP,MAC,JNJ, Pfizer,HP, Chevron
Being,G,Disney,Royal Dutch, Amaco, Mobil.
30% Hi TEch: INTC, SCSO, ERICY,MSFT,(very samll portion in NOVL and
RACE.)
Swiss Stocks. 20%: NeslŠ.
This is my fixed portfoglio. I do not trade with it, I add to it when I can.
to creat extra income, I trade on daily basis, buying and selling with two to three
dolalrs margin. I do not work with options, I buy stocks.) given that
we do not pay tax on cap. gain, nor on div. with non swiss securties,
the margin between what I buy or sell is net profit.
Goal: Make the money work. |
