LifeMap
Big goals demand big risks, right? Not always. Rock stars often have ambitious goals, but they also have the bucks to fund them. And like the rest of us they’re best off sticking to sound investment practices. To see what we mean, click on this star’s lofty goals to see how she plans to reach them. The results might surprise you.
Want to live like this?
No problem. First, become a rock star (we couldn’t resist). Next, check out the portfolios below to see how this star chose to invest the windfall from her breakthrough album.
A Life Map shows how a successful investor meets goals with different portfolios based on their unique circumstances.
Goal:
Buy a House
Amount: $2,000,000
Time Frame: 5 Years
Initial Amount: $1.7M
Contributions: $50K/yr
Risk Tolerance: Don't Want To Lose What I Have
Goal:
Buy a Yacht
Amount: $1,000,000
Time Frame: 5 Years
Initial Amount: $400K
Contributions: $105K/yr
Risk Tolerance: Cautiously Optimistic
Goal:
Space Travel
Amount: $5,000,000
Time Frame: 15 Years
Initial Amount: $3M
Contributions: $100K/yr
Risk Tolerance: Win Big, Lose Big
MEGA-MANSION EQUALS HIGH RISK PORTFOLIO, RIGHT? NOT FOR THIS ROCK STAR. For most of us, a down payment means 10% or 20%. But when the house in question is priced at $10 million, unless we’re already sitting on a huge bucket of cash and can take our chances on a high-risk portfolio, there’s just no way. Still, our rock star isn’t “most of us.” For her, $4 million is easy. She’s only going for a mortgage because of taxes. And since she’ll have so much left after her hefty down payment, this part of her portfolio can be as low-risk as possible. Which only underscores a basic tenet of investing: a well-constructed portfolio is going to be as unique as your circumstances.
AHOY So you want a home away from home — one you can set adrift on. While you won’t need any money to start this moderate-risk investment, you will need five years to let it grow along with sizable annual contributions.
AND I THINK IT'S GONNA BE A LONG LONG TIME When you’re a Rock Star, the sky’s the limit. Literally. You just need a generous amount to start, a commitment to monthly contributions, and over a decade to let it come together.
