Investing bankroll

[dalmatian]

You obviously cant lose your entire bankroll in one trip if you are playing with a reasonable ROR. Instead of letting the rest of your money sit in a bank not growing, would it be a good idea to keep it invested somewhere.

I'm thinking of doing the following with my 60k bank:

20k liquid cash to play with
20k in an accelerated savings account with ~1.5-2.0% interest
20k in a moderately aggresive mutual fund.

This is all speculation but the reasoning is I have 2/3 of my bank in 0 risk locations and I would have to lose 66% of my bank before I touch mutual fund stuff. If my mutual fund dips and I have to pull money I am essentially locking in a loss so this would be touched last.

Anyone do anything similar?

[UNCBear4SJ]

20k liquid cash to play with
20k in an accelerated savings account with ~1.5-2.0% interest
20k in a moderately aggresive mutual fund.

This is all speculation but the reasoning is I have 2/3 of my bank in 0 risk locations and I would have to lose 66% of my bank before I touch mutual fund stuff. If my mutual fund dips and I have to pull money I am essentially locking in a loss so this would be touched last.

This isn't 0 risk but you indicate you understand that when mentioning the possibility of loss. I do something similar with Vanguard ETFs (listed in descending order of risk):
20% in Money Market (currently yielding 2.08 -- associated with my checking account so withdrawals, if necessary, take a business day)
30% in Total Bond Market (trailing 12 month return 9.8%)
30% in Long-Term Corporate Debt (12 month 24.95%)
20% in High Dividend Yield (12 month 14%)
Rebalanced quarterly.

[BJGenius007]

This isn't 0 risk but you indicate you understand that when mentioning the possibility of loss. I do something similar with Vanguard ETFs (listed in descending order of risk):
20% in Money Market (currently yielding 2.08 -- associated with my checking account so withdrawals, if necessary, take a business day)
30% in Total Bond Market (trailing 12 month return 9.8%)
30% in Long-Term Corporate Debt (12 month 24.95%)
20% in High Dividend Yield (12 month 14%)
Rebalanced quarterly.

All markets are skewed by central banks' QE, Repo and measurement like that. Better hold only 100% cash/money market in the next 18 months. Even Treasury is not as reliable as in the past. Forget corp bonds.

[21forme]

All markets are skewed by central banks' QE, Repo and measurement like that. Better hold only 100% cash/money market in the next 18 months. Even Treasury is not as reliable as in the past. Forget corp bonds.

Oy!

[UNCBear4SJ]

All markets are skewed by central banks' QE, Repo and measurement like that.

Thanks. I am well aware markets continue to be distorted by the quantitative easing the Fed felt necessary to implement. There is risk in everything (and obviously we all accept some risk since we are on a board dedicated to an activity which carries a high degree of short-term risk). I'm comfortable with my strategy at the current time, though stand ready to adjust allocations should normalcy begin to take hold, with rising interest rates putting pressure on pricing.

[ZeeBabar]

What if you have the $$$$ in a hole in your backyard. If you take $20k in cash out and deposit in a bank, they want to know where you got it. How do you convert cash before you can adapt a strategy?

[MJGolf]

What if you have the $$$$ in a hole in your backyard. If you take $20k in cash out and deposit in a bank, they want to know where you got it. How do you convert cash before you can adapt a strategy?

Zee...c'mon man. You don't have to deposit $20k cash at once. And why would you? You can deposit in more than one bank, also. If you don't do it often, then you can't be accused of structuring. Another way IF it's a casino that you know, is to use cashier's checks from the bank. Cash at the casino. Assuming it's one you don't mind showing ID at. Then upon playing. Bring your cash back to your bank. If they ask...... Let them know you are going or went to Vegas and then redeposit the cash. They won't give you much if any guff.

[Overkill]

This thread seems to be right up Don's "alley." Maybe we will be fortunate enough to have Don reply to these questions.

[DSchles]

This thread seems to be right up Don's "alley." Maybe we will be fortunate enough to have Don reply to these questions.

As a general comment, despite the very low interest-rate environment that continues to prevail, I don't ever advocate keeping money under the mattress, especially for younger people. Two percent annually on $20,000 surely isn't a fortune ($400), but money is money, and it's always better in your pocket than not.

Next, while I believe in diversification for larger amounts of money, I think, for relatively smaller "portfolios," simpler is better. For example, for that amount of money, I think five different "pockets" just isn't necessary.

Finally, I just never have been much of a bond person. And, although I have the highest regard for Vanguard and have a lot of my money with them in equity index accounts, I really don't approve of junk bond funds for investments (the euphemism is "High Yield"; they just leave out the "high risk" part!).

Don't know I've added much that you may not already know, but in today's environment, you have to look to more unconventional areas to earn significantly higher returns with your non-blackjack portfolio, separate from simple bank accounts or risky non-insured investments.

Don

[BoSox]

Don't know I've added much that you may not already know, but in today's environment, you have to look to more unconventional areas to earn significantly higher returns with your non-blackjack portfolio, separate from simple bank accounts or risky non-insured investments.

Don

Unconventional areas, Don, I'm glad you cleared that up. Can you throw us a bone here for some areas of possibilities, thank you.

[DSchles]

Unconventional areas, Don, I'm glad you cleared that up. Can you throw us a bone here for some areas of possibilities, thank you.

I'm sorry. I'm actually involved with one right now. But I simply can't disclose what it is. It has nothing to do with gaming.

Don

[grnmax]

I'm sorry. I'm actually involved with one right now. But I simply can't disclose what it is. It has nothing to do with gaming.

Don

Admit it, Don. It's Bitcoin, isn't it?

[DSchles]

Admit it, Don. It's Bitcoin, isn't it?

Wouldn't be caught dead with it.

Don