blonde poker forum

So you have won $150k – what’s next

Hypothetical

So you’re a recreational player and you have just taken down a tournament and won $150k.

What do you do next?

1.   Do you bank the money and give up poker
2.   Do you enter much bigger buy in tournaments
3.   Do you start playing $250/500 cash
4.   Do you just continue playing $200/$500 tournaments

Other thoughts

Couple nice holidays, and then 4.

U book yourself and the family a nice holiday, turn up for work the next day, and continue playing the same level comps/cash.

With the odd larger comp that you've always wanted to play.

Ask verndog lol

It's amazing how many recreational players do actually bank their money (pay off their mortgage and have a few nice holidays) and continue to play poker at the same level. I think this is generally weighted towards the recreational players that are decent though. The ones that are woeful are usually deluded and pump all their money back into the system and then more.

Upgrade the car, new kitchen, couple of hols.
Continue same tournies with a few bigger ones thrown in

Better hookers

Come on, do we have to go down the stereotype that poker players get with hookers?

Well don't have to go down at all. Just leave that to the hookers.

Buy EMTNs then sit back and earn more Rupees

Tom!

We expect better of you, especially at your age & rotundity.

Love these hypothetical questions ;)

Thin.

Pay some off the mortgage carry on, holiday or car upgrade, carry on as you were.  Certainly wouldn't step up too far if I am normally struggling to beat the level I am at.  There certainly is nothing wrong with doing something like play the main event of that was an ambition, just don't do it 10x.

Given my experience, downswings always follow big wins, so definitely don't pay too much off the mortgage.  Some players can pay off more than others obv.

I'm 57. I have no debt, nor do I have a pension or a regular income. What would you suggest I do with a £150k win?

As a rec player, I take out $130k and play some $50/100 tourneys.

Few nice holidays, do up the house and generally live without much worry.

Pay off the Chinese and then hope to bink another $150k to get me out of it...

Depends what lifestyle you are happy with, would you want to splurge it all on holidays or consumer goods or would you want to play higher stakes and enjoy that? You could give it away?

Use it to provide a regular income for x years,either by investments or otherwise, if it was me.

If I won a nice chunk like that now it'd be clearing the finance on my tractor etc, make business life easier, use the rest for a depo on my own yard.  

Poker wise just keep playing the same, like has been said there'd be no harm done in having a pop at one or two biggies though.

None of the above Sy.

I'd like to use it to create some kind of income for when I can't work.

Buy a house with small mortgage and rent it out. Would bring my retirement forward quite a bit, min 5 years.

Buy 3 IMO then and have the capital growth as well bringing your retirement even further forward.

You dont want too much concentration at 57?  Don't get many 2nd chances.  Would use a lot of it to buy a portfolio of high yielding shares.  Should be able to get 5k income with 100k and no need to hope your tennant doesn't do one.  Annuities pretty bad at 57.   

Do uou get a full state pension at 65 or whenever it is?

Property investment of some kind would be very hard to beat for me. Rental income would provide protection against inflation. Since it's much harder to sell a house, you're much less likely to want to do so at the wrong time if the market takes a downturn.
For someone without prior specialist knowledge, I think it's much harder to make a serious mistake with property.

Def playing main event. Need that ticked off bucket list. House. Family holiday.  Keep a decent roll for mud stakes comps.

Main thing is wife won let me knock it in. That's why I married her :)

I mentioned earlier in the thread what to do and nobody as got anywhere close to beating it

Can you tell us more about these instruments

European medium term notes

You need £100k minimum to get involved hence Your $150k winnings

Find a good FA  and i mean GOOD

Obtainable is 20% paid monthly over 10 months direct into your bank with your initial investment placed in a trust which nobody else can touch.

Now i can already hear all the doubters getting ready to have a go at me, save your breath its a fact

As always i am only trying to help

I tell the Mrs I've won 100K, stash 50k for gambling/poker pay off the mortgage with the 100k and go a few nice holidays. 

Yeah 100% would tell her indoors the amount was less than it actually was. If she found out she would nag me into buying a bigger house instead of simply paying it off, which nitty old me would insta-do.

Tell her you won $110k but you are going to keep $10k for yourself as a reward. That way she isn't suspicious when you buy something of high value :D :D.

Buy her some shoes occasionally to cloud her thoughts and not see through the plan.

You get 20% over 10 months you are taking quite a lot of risk.  Whether it is a risk of default by the issuer or worse, the risk is definitely there.

If you name the broker and the bond issue paying 20%, it shouldn't take long to work out which it is.

I think for someone who is not clued up about the stock market (assuming Red Dog isn't) a few income investment trusts, maybe some vanguard equity income and a little bit of woodford might be easier to keep on top of?

I'd wait.

Agree Tony, shocked to the core.

If I won 150k I'd breath.

Sorry Doobs your wrong this time

Okay time to answer now

How did i guess you would be the doubter Doobs

Read what i said,  funds held on deposit in a bare trust and cannot be used, risk eliminated

Positions have already been traded, hence the return

Companies involved cannot be disclosed on here for obvious reasons but this one runs to 2019

I also said GOOD FA

Your average and above average FA won't even know about EMTNs and definitely won't have a line into this one

So outlay secure, and after two months you have already beaten the high street by miles

You aren't ansering anything.  You said that you buy European medium term notes. They are fundamentally the same as any other bond, someone borows some money, they give you coupons and final payments in return.  The yield you get depends on the perceived credit quality of the issuer.  There is nothing that unusual there, and nothing that would mean you can get 20% risk free over 10 months risk free. 

Everyone else in the developed world is crying out for yield, but you can go through some unnamed financial advisor and make chunks buying and sellling these bonds/notes through him.  If you are the middle man, why do people go through you and pay a premium?  There are a whole host of ways I can buy Shell's corporate debt for instance, why would I choose you/your FA?

Why would a triple A corporate be effectively paying 20%+ interest + comissions to go through some back market to raise finance?  There are a whole truckload of institutions happy to pay you 2 or 3% a year for your AA and AAA bonds, and they aren't even risk free.

You have funds in a trust, but you have positions on two trades, who are they with?  Why is the no risk with these trades?  Why do your counterparties always pay when the ones the companies I work for suffer defaults?  What happens if the underlying bond defaults?  Is there any hidden gearing?  Who set up the trust, your advisor or your solicitor?

There are no obvious reasons why you can't name a financial advisor or the firms involved.  There is nothing illegal about buying and selling bonds and notes, and nothing illegal about giving financial advice.  There are also legal ways you can hold them and not pay tax on them.

I don't get it.   

Someone should call Warren Buffet about this, in a few years he owns the whole world.

Yeah you summed it up well

You don't get it

https://www.treasurydirect.gov/instit/statreg/fraud/fraud_prime2.pdf (https://www.treasurydirect.gov/instit/statreg/fraud/fraud_prime2.pdf)

This has the same sort of triggers as a lot of fraud.  It sounds impressive, you have ben asked to keep it secret, it is only available to a select bunch of investors.

Reread what you have, show your paperwork to another advisor, even if you only think it may be a possible fraud, speak to the police.  The police have a website called actionfraud.  The FCA will also have contacts.

Don't get anybody else involved. 

You can pm me if you need help.

Thank you for your concern 


You don't know me personally so i can understand your concern

I had this same conversation just a few weeks ago with a city hedge fund manager and just like you he was desperate to pick holes in it, after spending a day investigating it and the names i gave him he contacted me to say he was sorry to say it was pukka

Do you honestly think i would go into this blind?

You don't know the contacts i have

Anyway your obviously a non believer and your entitled to your opinion

Drawing a line under this, happy to take my 20%

 

By the way i have never repeat never been told to keep it a secret

I just aint broadcasting my dealing contacts onto a public forum for obvious reasons

i'm in the "if it looks too good" camp on this 20% over ten months.

I use to be in that camp also

Can fully understand

All the celebrities getting done with tax avoidance were told it was pukka at the time by the best accountants in the business. It takes more than a 24 hours to find a hole. It took 30 years to find Maddoff out.

Wouldnt let Willie Tann know :)

Magic beans vs the cold pragmatism of Doobs, I know where my money is.

Current risk free rates are

German 2 year - 0.23% (that really is negative)
UK 2 year + 0.48%

Other rates
India 10 year is 7.8%
Brazil 5.0%
Greece 10.8%

So this return is either twice as risky as Greece or the issuer is clueless about money. (I think both of those are bad)

Surely it depends on your financial situation, if £100k represents a significant portion of your overall net worth then you HAVE to accept that poker isn't a source of long term profit and bang the cash into sensible stuff, mortgages, investments + obv gotta treat yourself to some nice stuff - after all whats the point in playing if you're not gonna feel like a king for a bit after a significant win :)

IF you're lucky enough that £100k cash influx wouldn't really change your life all that much then spend it on fun stuff that wouldn't be "sensible" to spend hard earned cash on, swanky new car, needlessly overpriced golf clubs, huge splurge holiday for the family (1st class flights, sick suites etc) basically an opportunity to go on a guilt free spending spree, and ofc keep a chunk to gamble with as its obviously a recreation that you enjoy

my wife wants new tits.........

i might be in favour of it too, on her of course

Staking thread?

10 pls

*thin brag*

As someone who is generally a low/mid stakes rec and has had a few sizeable wins and one huge win, I just treat them as windfalls. With my biggest win, I "donated" about 5% back into the poker community and then just carried on playing the same stakes. I withdrew most of it and just paid for home improvements/holidays/gave to wife.

I never really entertained the idea of going pro and just counted myself lucky to run so good in such a big comp.

As for advising what to do, it depends on age, personality and circumstances. I am middle aged with a wife, young family and a decent job that I enjoy, so am never going to give that up. If I was 20 years younger, single and not as well paid then I would have blown the lot in Vegas for sure

are super knowledgeable

love this, always interesting to read your posts.

Buy somewhere to live.

If you already have a house and want to invest it, you should buy another house/flat in an area you know and is up-and-coming and rent it out.

If that's not your thing/appealing, I would not buy shares right now* - the FSTE100 is almost at the highest point it has ever been. Over the last 20 years, every time it has reached a peak, it has crashed soon after.

(http://i1296.photobucket.com/albums/ag4/phill_555/FTSE100from1995_zpsdiy4lbxo.jpg) (http://s1296.photobucket.com/user/phill_555/media/FTSE100from1995_zpsdiy4lbxo.jpg.html)

I think the next peak will arrive after it reaches 7,000 for the first time ever. This will be followed by huge news coverage/exposure and lots of 'mug' money (probably from people cashing in their whole pension pots) will follow in at the top.

All it takes is an act of terrorism in the UK (it's been a while...) or for us to get involved in another war or exit Europe and shares will tumble. When the FTSE100 goes down to 4,200 I would be looking to buy a tracker.

For now, you might want to buy Gold as it has tumbled a great deal from its height, and traditionally does well when there is turbulence in the stock market.

*The only exception to this is single-company shares in firms that have hit a rough patch but will pull through as they are in a sound industry and have a good previous track record. I did well buying Lloyds and RBS shares when they bottomed-out (knowing I could sell back at the price just below what the Government paid. I felt the Gov. wouldn't want to sell at a loss but when they did start to sell it would result in a ceiling on the price).

The next company I did this in was Tesco, if selling horse meat couldn't bring them down then a touch of over-stating financial results wasn't going to either...at the end of the day they provide a good service with good prices/offers and their shares will creep back up to 400p before I will look to sell.

Bit of a wannabe entrepreneur but roll out excuses like kids/job etc for not having time or risk appetite to go for it properly.

Would use it to "pay" myself enough to maintain same standard of living for 6-12 months while devoting full time to validating business ideas and hopefully ultimately progressing with one, while knowing i can just go back to working if it doesn't pan out.

"Read what i said,  funds held on deposit in a bare trust and cannot be used, risk eliminated
Positions have already been traded, hence the return"

What do you mean "positions have already been traded"?  If they have already been traded then why would you be the one getting the return and someone else takes the risk?

Why would a company pay you 20% to use your money, if the money is placed into trust and cannot be used.

Hate to be a killjoy but this sounds absurd.

without a doubt this....

If it was that easy to make 20% risk free wouldn't everyone be doing it ?

Not always the case, a friend of mine will never have to work again because he invested ~50k in a start up business that went absolutely massive, pretty sure the pitch to him would have been a 'looks too god to be true' scenario.

you can be sure as shit they didn't guarantee him 20% in ten months with the money locked up in a trust fund that couldn't be used.

ofc you can have massive hits investing in startups (and you'll do better than average if you're smart about it ofc) but it's anything but risk free!

would be willing to bet the pitch to him was 'some % of the time we go broke, some % we breakeven or make a small profit and some % we swing for the fences and you don't have to work again'

True - but in that scenario the risk he took was huge......he could of quite easily lost it all.....as i've read it the 20% is supposed to be guaranteed !?

A start up business is absolutely nothing like the situation described, which is too good to be to true.

lol dont't be daft, how often are any of these pitches anything other than we will make you rich? Don't you watch dragons den? lol

if Dragons' Den really was an approximation of how these things go then I'd be worried for the future of the country! ;)

of course founders always think their idea will change the world but it's pretty obvious there's no guarantee of return with such an investment. if there was, it'd be called an arb, not an investment :D

(and anyway, getting a gtd return isn't what investors here are generally looking for, they're far more interested in smashing a huge multiple and then not having to work again, like your pal ;))

EMTN

You can actually yield 100% + on these notes over a single year and they are issued by large multi national companies to sure up their cash positions - companies such as shell, bp ect, the only problem is the majority of them you have to purchase at tens of millions of dollars and they are sold through the likes of Goldmans, Nomura, JP Morgan. and again you have to use the right people.

There are some which are accessible for those with less to invest but they are normally parceled up and in packages. To get into this you need a financial adviser that has a lot of wealthy clients.

My mate is moaning because he got a bill from his tax adviser which was a six figure sum, when i pointed out that his tax adviser had saved him a considerable amount of money he still moaned but more quietly.

Its the old adage its who you know not what you know.

One of the best investments is art - the right painting will out strip any other form of investment return - there are only so many Renoirs in the world and he won,t be painting any more.

If gold drops to $900 steam in because when the stock market dives 9/10 gold spikes.

Me personally i would give most of it away - there are always in your own circle people that you think are doing okay but their struggling and helping out wouldn't cost you because you won the money in the 1st place

A pal of mine put £1 million into these promissory notes 2 years ago and he has returned 50% per annum

I put in less 2 years ago and my return has been 20%

These returns are paid direct into your bank

The trouble here is that its hard for people to understand unless your involved, trillions are traded each day into groups of high net worth individuals

People on here that know me personally know i am not telling porkies, except for DCI Doobs who wants the police involved lol

ps i am not going to say anymore on the matter will just stand back and let the ego warriors criticise

"ps i am not going to say anymore on the matter will just stand back and let the ego warriors criticise"

It's not about ego warriors.  We are merely pointing out that the risk/reward profile you are claiming is impossible.  It's either a scam, or more likely it's genuine but you don't understand the risk profile you have.  20% return makes sense if you have shorted options for example and the premiums are being paid into your bank account.  There have been plenty of packages dreamed up by financial advisors to this effect over the years.  It can be bundled so it's not obvious that you're on the other side of someone elses call option.  Your investment might be effectively being used as margin against your short position and the "interest" you are receiving is the option premium.  When they say your money is in trust, that might technically be true, because the FCA rules dictate that your money must be a segregated account until the option MTM moves against you at which point it can be taken.  I'd advise you to read the small print of your documentation.

Dung

I have been a self employed commodities trader for 36 years

Please don't lecture me on markets, futures, options, puts, calls, margins i live and sleep them for fun

We are all born equal - some are just luckier than others.

Thats true mikey but some of us work harder than others and sum up risk better

Sell employed commodities trader?  As in punting at home in front of the PC?

You seem to think you can bank 20% pa with your cash held protected in trust risk free.  You might be a good commodities trader for all I know but I can only conclude in this instance that you don't understand the risk profile of your investment.

Think of it from the other side.  Why on earth would they borrow your money when they can't use it and pay you 20%?  

dear oh dear oh dear

Punting in front of my PC

If only you knew Mr Dung

Good luck with whatever you do Dung
Good luck with whatever you do

I'll try again - why would a company pay you 20% return, if they have to put your investment in a segregated trust that they can't utilise?

+1 the harder you work the luckier you get.  

Working hard is a good ethic - though it is not a guarantee of success -

The three most thickest, stupid, idiotic and dumb people that i have know so far in my life, have a combined wealth of over a £1 billion, one of them made his vast fortune from investing £4,000 twenty five years ago.

I can call them the names because i have said it to them directly, none of the three are very happy, yes they can buy what they want and do what they want.

But they have lost most of their mates and now have to mix in different circles.

My mate down the road is a plasterer, never going to be rich, but he is one of the happiest blokes i know.

Even people i know that were born into money - they tend to handle money better than those who have made it but there not all happy.

To my knowledge you only get 1 shot at life so i find its best to chill, we are all dealt a hand in life and you just got to let it play out.

Final thing - my other mate who is a chippy also day trades from his ipad, in less than 2 years he has made enough money to pay of his house, he has had a good run and will no doubt take a hit sooner or later but he started off with 10k - and is now mortgage free.

Last answer then throwing the towel in

Come talk to me when our paths cross on the poker circuit sometime and i will explain, not doing it publicly

E.C.B. Dictate that all banks must have a cash balance on their balance sheets of minimum 5% maximum 7% by 2019

The majors need cash or shall i phrase that cash they can say is theirs!!


Dung i might even let you sit in front of my PC and have a play

Yes that's a valid reason for banks to want cash, but not corporates.  However, that doesn't explain why they would pay 20% for cash they need to segregate when they can borrow at Libor and get unencumbered cash.  If they put their current account rates up to 5% they would be flooded with depositors' cash, without the need for segregation and at a quarter of the cost they pay you.

Anyhow - you don't want to talk about the structure in public so I'll leave it.

Never throw in the towel -

Take out the animosity and just explain it as their are people on here that are interested.

I would like to point out that when Warren Buffett started out there were a lot of sceptics  who said that he could not continue to return an average 15% year on year plus grow the share price.

Ask anybody who brought a Berkshire Hathaway share if there unhappy you would struggle to find one.

They believed in there man

Heres a company going places, estimated annual return 8%

Easy to get involved here and supposedly the key to the future

DYOR

Background and Investment Objective
 
·         P2P Global Investments PLC is the first UK listed company dedicated to investing in Credit Assets originated via online lending platforms globally.
·         The Company’s investment objective is to provide shareholders with an attractive level of dividend income and capital growth through exposure to investments in alternative finance and related instruments. These may include, directly and indirectly, exposure to consumer and SME loans and corporate trade receivables that have been originated through online peer-to-peer (P2P) platforms in the UK, US and Europe.
·         P2PGI will typically seek to invest in P2P loans with targeted annualised returns of 5-15% (net) across multiple P2P platforms, asset classes, geographies and credit risk bands in order to achieve portfolio diversification and mitigate concentration risks.
·         The Company may also seek to invest in equity stakes in P2P platforms themselves via direct equity investments or through the acquisition of warrants or other convertible securities.
 
 
Investment Highlights
 
·         1st UK listed permanent capital fund dedicated to P2P/direct lending
·         Multiple agreements with leading P2P platforms
·         Specialist investment management team
·         IPO proceeds fully invested by end January (9 months from launch)
·         85%+ of net income distributed as a dividend
·         UK Investment trust tax treatment
·         Investment Manager – Marshall Wace LLP
·         Sub Manager – Eaglewood Capital LLC
 

[ x ] fail

Sorry Miss

Never invest in something you don't understand, always get professional advice, but don't always take it, if your not prepared to lose it don't invest.

Even the big boys get it wrong.

Northern Rock
Rover
Woolworths

I could go on