Thread by @TihoBrkan

1/ I've posted interesting asset allocation charts by the HNWIs & family offices before. They are very much focused on thorough asset class & geographical diversification while implementing investment strategies for the long run (not Wall Street's next quarter).

However...

2/ ...not everyone is an HNW individual or a family office. The truth is only around 0.1% of the households are that wealthy.

How does one execute this kind of strategy with $500,000 or even just $100,000?

Is it even possible and would it yield a good, solid return?

3/ Yes I think it's possible to execute it and I think you can beat the $SPY by 500 basis points (at least) with much less risk.

In other words, a much better absolute, as well as a much better risk-adjusted return.

So how to execute such a strategy?

4/ How I'd execute a "poor man's family office" strategy.

40% Triplex "house hacking" rental
20% Asset-backed senior debt on a CRE deal
20% Equity preferred on a CRE development
15% World stock market index fund $VT
5% Gold trust $IAU

This portfolio can be done at $250k.

5/ Are the nuances there? Yes. You got to know what you're doing.

Plenty of reasons why this wouldn't work, why it would take too much time, too much research, too much risk, too much of anything.

A perfect reason for you not to try & stay the course.

6/ So, if you’re happy to retire at 65 instead of 40, by all means, stick with the long term plan.

If you want to achieve results of 0.1%, you’ll have to do different things to 99.9%.

To achieve returns of 15%, 20% or higher — you'll need to dig deep!