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Originally Posted by DrVenture
So, what are everyone's ideas on how to play this market?
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Unless you're ultra wealthy (multi-multi millionaire with business/lots of real estate/etc), you're not playing this market. If you have less than $10M in assets, you're a tiny fish in a huge pond that really favors the wealthy and big business. They ultimately are the ones tweaking the dials.
The way I invest is super simple and has been extremely lucrative over the past 11 years or so once I started managing our money rather than an expensive, so-called financial advisor that takes 1 to 2% annually of your money in fees to do next to nothing. I'm currently 50 and have a Roth IRA (his and her), traditional IRA (money from a former 401K), 401K (current employer, put in 3% which is the match), and a brokerage account.
I have 80%+ of our money in those accounts in Vanguard SP500 index funds. I also have about 10% in Berkshire Class B, 5% in some random "what the hell stocks", and then about a full years salary+ in a money market (MM)/settlement account within our brokerage account. That MM account collects about 5% interest/dividend.
All my dividends in our retirement accounts are reinvested or shoved to their internal settlement accounts and then once there is enough money, we buy more index funds.
The dividends from our brokerage account are pushed to its MM account. We routinely take a bit from that MM account to buy big ticket stuff like my wife's 2020 4Runner, my 2011 Cayman, new carpet for the house, my daughter's club volleyball fees and expenses, etc. I'll skim some to buy a new truck here shortly. We'd have a ton more money in investments if we didn't skim that account so much over the last 8 years and simply reinvested. But for now, it works for us until our daughter is out of expensive club sports and she's in college (she had a fully funded 529 and she will likely get a full ride). Our 19 y/o son also have a fully funded 529 and we might spend around $200/mo helping him with non-529 expenses.
We own our house and all cars. We've never carried CC debt and use CC points to get free flights and such.
This is the best way I've come up to game the market. I'm sure I could tweak things more so to increase things, but frankly I don't have the time to research it and constantly manage it. With the way things are setup, my portfolio generally tracks the market so that means I generally know how things are going. Every quarter, there are thousands in dividends coming in and being dispersed as well.