'Am I Playing It Too Safe?' Reddit Offers Polarized Advice

Có thể bạn quan tâm

Lucky 21-Year-Old With $70K Portfolio From META And ETFs Asks: ‘Am I Playing It Too Safe?’ Reddit Offers Polarized Advice

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Bạn đang xem: ‘Am I Playing It Too Safe?’ Reddit Offers Polarized Advice

Investing in the stock market requires skill and strategy, but some can also get lucky. Some investors win big by betting on individual stocks very early, like META, while others are more cautious and prefer to spread their money in index funds like ETFs.

This brings us to the story of a 21-year-old college student who inherited a $70K portfolio from his dad. His father bought META stocks at $29 per share and held them until the investment was worth $30K.

“My dad invested a few grand into Facebook when it was $29 a share,” the college student wrote.

Don’t Miss:

When the portfolio became his at 21, he sold the META stocks to avoid capital gains taxes and because of his low income, he paid 0%.

“META accounted for about 40% of my portfolio weight, which I didn’t necessarily like. Because I’m a college student and my income is less than $48,350 this year, I’ll pay 0% on capital gains. Therefore, I figured I’d rebalance my portfolio and completely sell META, using that liquidity to invest in ETFs,” the young investor said.

Now, he’s restructured his entire portfolio into ETFs. His current allocation includes 52% or $36,500 in VOO, 17% or $12,000 in AVUV, 17% or $12,000 in AVDV and 14% or $10,000 in SWVXX, his emergency fund.

Because he plans to start a job at a Fortune 500 company after graduation, he’s considering DCA for these investments.

Xem thêm : Is Myriad Genetics Stock a Smart Hold for Your Portfolio Right Now? – December 17, 2024

“After I graduate, I’ll be working in sales at a pretty large Fortune 500 firm, so once I have consistent income, I will continuously DCA into these,” the 21-year-old investor wrote.

See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

However, he’s unsure of this strategy and wonders if he can follow a better plan, so he’s turned to Reddit for advice. And Reddit has delivered.

Let’s analyze what the commenters have suggested the 21-year-old do.

Redditors’ Advice for the 21-Year-Old Investor

Stick With the Core ETF Strategy and Keep Diversifying

Many Reddit members of the r/ETFs community have suggested that young investors stick with a balanced ETF portfolio but adjust the allocations for better diversification and long-term yield.

“A better split if you want, would be: VOO: 50%, AVUV: 16%, DFIV: 10%, AVDV: 10%. This gives you better international diversification as well as improves your risk-adjusted returns,” a Redditor suggested.

According to this Redditor, this strategy capitalizes on the stability of the U.S. market while including international exposure to protect against domestic downturns.

Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!

Xem thêm : Deutsche Telekom AG Takes Center Stage

Automate and Focus on Long-Term Growth

A few Reddit members have stressed the importance of automation and discipline in building a stable portfolio to create wealth over time, avoiding high-risk moves like options trading.

“My advice: Time is the most valuable asset when it comes to stock asset maturation. You are on the right path. Also, don’t play options,” a comment says.

A Redditor suggested the 21-year-old automate investing every paycheck into the final allocation to create discipline and ensure the money goes into his portfolio.

“That’s a decent portfolio. Make sure you automate investing every paycheck, like your 401(k). Set and forget it,” the Reddit member wrote.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

A 9% Return In Just 3 Months

EquityMultiple’s ‘Alpine Note — Basecamp Series’ is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won’t last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option.

What’s more, Alpine Note — Basecamp can be rolled into another Alpine Note for compounding returns, or into another of EquityMultiple’s rigorously vetted real estate investments, which also carry a minimum investment of just $5K. Basecamp is exclusively open to new investors on the EquityMultiple platform.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

This article Lucky 21-Year-Old With $70K Portfolio From META And ETFs Asks: ‘Am I Playing It Too Safe?’ Reddit Offers Polarized Advice originally appeared on Benzinga.com

Nguồn: https://earnestmoney.skin
Danh mục: News