▪️401k (4% company match)
▪️Roth IRA max ($6000)
▪️HSA max ($3500)
▪️Gold 5%
▪️Bitcoin 3%
▪️Remaining goes to after-tax brokerage where I split 50/50 ETFs/Individual Companies
Savings rate: 50-60% (this gives me a lot of options)
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A few other stats:
▪️I do not use DRIP (automatic dividend reinvestment)
▪️My 401k/ROTH are set up with about a 60/40 split US/International total stock funds
▪️ETFs — I favor the lowest expense ratio option when available
▪️Favorite ETFs: $VTI, $VOO, $VXUS, $ICLN, $VGT
For early investors, it can be hard to figure out WHAT to buy.
You know you like a few companies, but you don’t know if together they’re a good idea.
That’s where studying ETFs come in 👇🏻
Firstly, what’s an ETF:
Like index funds, ETFs are a fund of multiple stocks. Some have 100 holdings, some less or more. But they give you good diversity matching an index or sector.
Even for experienced investors they can be a great catch-all to passively invest.
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There are 2 main types:
Passively managed (cheaper fees) — like $DGRO
Actively managed (more expense because they are closely managed with more buying/selling activity to try to increase the fund earnings) — like $ARKK
They’re boring, they don’t really grow, and they pay... almost nothing.
Let’s go through a few types of bonds — AND why I currently hold hold them (*disclaimer - not investment advice for YOU)
1️⃣ WHY?
Current savings account interest rates are low. Like REALLY low (Ally just lowered to 0.60% down from 2.25% two years ago or so).
Inflation is pegged around 2%. That means your bank is actually losing money over time.
It’s like having a hole in your wallet...
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This is where bonds and bond like funds come in, for me.
After talking with @andyisom100K and @javyandrade , I started tinkering with a portfolio of several types of these funds to park some of my savings (not all!) — to allow it to grow.