Ask HN: How do you invest your money? |
Ask HN: How do you invest your money? |
This made me quit my job without any other offer. I got hike of 35% during peak lockdown of Corona. Money in bank account is just numbers. Invest in yourself and learning.
Every now and then someone contacts me interested in buying some shares of that company, which I promptly sell and immediately buy index funds with the proceeds. I liquidated about $1M of those shares already, I wish I could sell the rest, it is so “painful” having so much of your net worth locked up into an incredibly illiquid, risky and unpredictable asset.
I don’t invest in nor own anything else (except a few months of living expenses in a savings account): I’m a happy renter and don’t own a car.
- 30% Industrial/Commercial Real Estate
- 5% Crypto
- 40% Cash
I'd like to reduce the cash. Will probably buy gold with about half the cash to align with a more all weather portfolio [0].
0. https://ofdollarsanddata.com/ray-dalio-all-weather-portfolio...
Have you been increasing bond allocation over time or just sticking to a 70/30 lazy portfolio?
Is 30% too much or too little from your experience? I can understand people preferring stocks at the moment because bond yields are so low. But that won't be the case forever :)
Seriously get in TSLA. It's going to double by March, probably earlier.
I could buy ETFs and do the boglehead/lazy portfolio but the returns are minimal compared to picking market leaders. Also you need to be making serious money for those to be valuable or live a frugal life and then spend when you are dead.
This is where skill really matters.
Also if what I said was so preposterous you should have said, I will give you 10x your return if that happens and give me a 2x if it doesn't.
I probably need to rebalance my money, but I'm a similar age (normal health) and I shoot for 10-15% and that's on the higher end of the people I discuss my finances with.
Index funds have allowed me to not have to save for retirement anymore (have enough based on FV calc), and yes buying the FAANG stocks 6 years ago would have yielded much larger returns, but could also have yielded losses if they went the way of Exxon.
However adding some money into the market leaders would be a wise idea IMO. I.e. TSLA and AAPL. Since you are in the ETF ($SPY) for now then you are already invested in AAPL as it's the largest portion of it so adding TSLA which is going to be $5,000 in a decade would be wise.
You can place it in an lazy/bogleheads portfolio if you want to reduce risk and even that is not guaranteed.
The only difference between what I said and an ETF is $TSLA will turn $100,000 into $1M in a decade but the ETF will only turn $100,000 into $400,000 in that same time frame (if the SPY continues its 10-year returns.)
Play: When TSLA gets over $440, I'm grabbing weekly $450s and looking for $500 targets.