▪️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.
Precious Metals (Gold, Silver) have been a 🔥 topic lately with the wild US monetary policy —
Here’s a breakdown of all the ways you can invest in precious metals, as well as whether I think it’s good investment (for me).
\*thread*\ ☕️
There are generally 3️⃣ main ways to invest in precious metals:
• Physical metal (coins, stored gold, etc)
• ETFs that track the spot price of the metal (and shares are often backed by physical metal)
• Mining companies 💰 ⛏ — they dig the stuff up and sell it.
First, the physical metal —
Some people love collecting gold and silver coins or bars.
The upside is you physically own it!
Two issues I don’t like: You need to safety store it (get a good safe or pay someone) and they’re hard to move (not very liquid if you want to sell).
Student Loans are a HUGE reason why so many are in debt.
If you’re thinking about going to college, use these 2 filters:
☑️ What is the average salary of your degree field? If your loan is going to be more than a years salary, don’t do it.
☑️ Can you go somewhere cheaper?
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You hear all the time of social workers and teachers going into debt $200k for a degree field that pays an average salary of $40-50k.
That person could save 💯 of their money every year, and it would STILL take them 4-5 years to pay it back.
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Secondly, I’m willing to bet whatever price the school you are looking at charges — you can find somewhere cheaper.
Outside of select degrees (some STEM, lawyer/doc), 90% of the time no one cares where you went.
The paper says your name on it, and is worth the same.
I'm glad you're on this hip journey with me to build wealth —
I wanted to remind everyone why I'm here AND provide a few free resources to help guide YOU
I want to help educate as many as I can about personal finance, specifically:
✅Budgeting
✅Investing
✅Mindset
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Budgeting is the base for everyone that builds real wealth.
Without spending control, no matter how much you earn, you will always find a way to spend it (see countless celebrities/sports players who were making millions and then promptly went broke).
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Investing is what you need to do with your extra capital (from budgeting!) to help ensure that wealth grows. If you only save, you won't build WEALTH
I share tips on budgeting in my course, and on my feed daily
I also dive into investing education to help your knowledge
— I purchase Bitcoin and USDC through @investvoyager (see link inside thread to earn $25 in )
—I then transfer my crypto to @TheRealBlockFi where it earns 6-8.6% interest (see link to earn $10 in )
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The coolest part about crypto is it trades 24/7.
So while the stock market is closed, you have something to do.
I only invest a speculative portion of my portfolio in crypto. And I only buy and hold.
Here’s my referral links if you’re interested in getting started ⬇️⬇️
Voyager link (to purchase your crypto):
Download the app and trade $100 to get $25 of free Bitcoin.