Where is your money invested?

[PrettyBoyAJ]

Curious to know where your money is invested and how good/bad is it doing.

I was always told that's it's wise to have a year of expenses saved up as an F U fund. After that you should start investing. What have you guys invested in and how has that paid off for you guys?

For me, I'm 26 really don't have any money invested anywhere. I just have a F U fund now. I've heard Vanguard index funds are pretty goods. I'm. Not too fond on the interest rates of CDs but they beat the interest rate in a savings account.

 

[sazc]

Index funds are a good option
Betterment.Com is an investment vehicle

 

[speed dawg]

I don't know crap about investing so I keep my retirement in one of those '2040' or whatever funds. Same thing for my kids' college funds.

I don't think they earn as much as if you had a financial advisor doing it for you, but you don't have fees either.

 

[Tenacity]

Curious to know where your money is invested and how good/bad is it doing.

I was always told that's it's wise to have a year of expenses saved up as an F U fund. After that you should start investing. What have you guys invested in and how has that paid off for you guys?

For me, I'm 26 really don't have any money invested anywhere. I just have a F U fund now. I've heard Vanguard index funds are pretty goods. I'm. Not too fond on the interest rates of CDs but they beat the interest rate in a savings account.

I assume you mean passive monies right? Not active investment monies?

My passive portfolio is the following:

- S&P Index Fund through Vanguard
- Total Bond Index Fund through Vanguard
- CD Ladders through Online Banks as they usually have the highest rates

My investing approach is based on the following FACTS:

1.) Nobody can predict the markets, so it's better to just buy the market, which is like investing in on-going growth of America. When stocks do bad, bonds should do good, and vice versa. Put money in and let it RIDE the S&P and Total Bond Indexes for at least 20 years.

2.) Don't put all eggs in one basket, so put some on the side in CD Ladders, which is investing in fixed income. Note, Annuities are HORRIBLE, if you are going to invest in fixed income choose CDs. Search online for the highest FDIC-Insured CD rates, which are mainly coming from Online Banks today.

3.) Also while not an "investment vehicle", also keep money on the side in Checking and Savings Accounts.

4.) Now your allocation depends on your individual risk tolerance. I'm a conservative investor, so in terms of my allocation from now (age 33) until retirement (59 1/2) it will be:

- 40% Stocks
- 40% Bonds
- 20% CDs

 

[BeTheChange]

28.

20% of cash held in FU fund.

Considering parking some of that in equities.

80% of cash tied up in three properties via 100% owned real estate limited liability investment companies. Based on current estimates I should be making six figures from my portfolio in 5 - 10 years if I invest wisely and put my head down.

Assets are essentially paying for themselves. Tenants are helping me effortlessly build equity while excess cash is put away for the next purchase. One property is a luxury development, due for completion in Q4 2017. Other two are your suburb esque multiple room houses.

It's great to be able to spot a good deal but it seems like the real value creation comes from being able to structure the financing in the most optimal way possible. Debt is your best friend. I love leverage. Increases your ROE and allows you to spread your cash and grow rich quicker. As long as you can manage your cash flow debt is a fantastic instrument.

I'm fortunate enough to have a very stable job that means I can take risks outside of work knowing there will be a reasonably steady paycheck to cover any cash flow light periods.

 

[Bible_Belt]

My investing approach is based on the following FACTS:

1.) Nobody can predict the markets

That's an opinion, not a fact. You are welcome to your opinions, but stop telling other people what they can and can't do.

As just one example, look at nyse: GEO. They own the private prisons that profit by locking up illegal immigrants. Look at what the stock has done since Trump took office. Now, how hard was that to predict? It didn't take a PhD, or a crystal ball, or any sort of inside connection. Opportunities like that are around all the time. You just have to look.

 

[PrettyBoyAJ]

So when I'm talking investments I'm talking active and passive investments. From what I hear you can't go wrong with investment funds. But hate to sound dumb but I don't want to sit my money in a fund for 20 years and then make money. I'm trying to make money now and enjoy it in my 20's. I'm already in the 90 percentile when it comes to how much I make, it's time to make some major moves and set myself up for life.

I've been making some pretty good money for the past three years and just have been really putting all of my extra money in savings but I feel like I have way too much in savings. Want to try to make some investments to take me to that next level.

BeTheChange, your doing really well for yourself at 28. Congrats on making those moves. Where do you live? I've been interested in real estate but don't want to go through all the hassle of buying/closing and finding tenants. Also don't want to be responsible for broken things.

Bible Belt, your correct on that. When Trump got into office and started hiring Golden Sachs employees then Golden Sachs stocks went up. I should've definitely invested then.

 

[ChristopherColumbus]

There is still a lot of uncertainty and instability with our economies. Perhaps they have to be inherently unstable in order for there to be the amount of annual growth that economists demand. And perhaps this is due to the amount of debt that our fiat based currencies tends to generate.

I'd say split your 'worth' into real assets and financial assets. So have a small property, or even some land if you can afford it. Then you want to have some good liquidity. A couple of main currencies including the US dollar. It would not hurt to buy a little silver or gold online also. I'd say divide your assets between real assets, financial assets, and monetary assets/ currencies.

Then you are safe to invest in financial assets which are banking on continued growth.

Doing the above I think covers the bases as far as they can be covered. You may not 'maximize your profits', but you should be able to preserve your wealth during unusual times. The elephant in the room is record low interest rates.

I just moved some of my money out of cash into land. I think of it as a 'land bank'. Property prices are going through the roof in NZ thanks to continued open door immigration policies. You know something is not right when inflating asset prices are driving the economy while interest rates are still at record lows.

 

[Tenacity]

So when I'm talking investments I'm talking active and passive investments. From what I hear you can't go wrong with investment funds. But hate to sound dumb but I don't want to sit my money in a fund for 20 years and then make money. I'm trying to make money now and enjoy it in my 20's. I'm already in the 90 percentile when it comes to how much I make, it's time to make some major moves and set myself up for life..

Then you want active investments where you (or someone else you employ) is going to do the 9 - 5 active work. This is basically the creation of a business.

But what are you going to do with the excess funds? You aren't going to put everything you have literally into your business are you?

 

[PrettyBoyAJ]

I mean once I learn a little bit more about investment funds I definitely want to put in. I'm feeling like the market is going to dip however within the next year. So once it dips a little bit then I'll go ahead and buy some things. I actually wouldn't mind putting a bunch of excess funds in a business where I know I'll be getting a profit. Or maybe if business is going well I wouldn't mind traveling a little bit more.

 

[AAAgent]

leveraged gold funds, silver, bitcoin, and some cash.

 

[synergy1]

I have about 3% in a annuity, 10% in silver, and have written about 95,000 dollars worth of uncovered puts on Snapchat, facebook and Tesla motors. Three comma club, here I come.

But seriously - mostly index funds, >15% in cash, the rest into my own investments.

 

[EyeBRollin]

I carry 3 months expenses in cash. 10% of my salary goes into a Traditional 401k and 5% goes into a Roth IRA. I use Vanguard Index funds for both. 80% stocks spread across the total market, mid cap, and small cap. The other 20% I put into International Bonds.

Passive investing is incredibly overrated. Make use of what you can for retirement purposes (you don't have to forfeit your retirement in the event of bankruptcy). However, you should be actively finding other ways to invest and get rich. Try real estate, small cap stocks, or using that capital to start your own company.

 

[PrettyBoyAJ]

What apps on your phone are you guys using to invest?

I just downloaded an app called Robinhood and it seems decent. No fees to buy or sell stocks.

 

[logicallefty]

2/3 of my savings is at a credit union. The other 1/3 is in green cash

My retirement is in two very good traditional retirement plans from two places I worked for a long time; one job from the private sector and one from the public sector. Then I also have a third smaller one for somewhere I only worked for a few years, that one is public sector.

I've also been doing some day trading with some play money. I am breaking pretty even with that, and learning a lot. I enjoy the thrill of the hunt.

edit:
@PrettyBoyAJ I just downloaded "Stash" investment app about a month ago. Put in $100.00 and since then it's up $1.37. I'm not sure what to make of this yet.

 

[AlexKaiser]

Nowhere! but I do want to invest it.

No idea where though.

 

[BeTheChange]

What apps on your phone are you guys using to invest?

I just downloaded an app called Robinhood and it seems decent. No fees to buy or sell stocks.

I really wouldn't bother using an app to trade...day traders and impulse buyers /sellers get slaughtered for the most part.

If you focus on value investing (which as a young guy you really should be) then there won't really be a need for quick transactions.

 

[PrettyBoyAJ]

I'm not looking to day trade. I just don't like using computers and like to do everything on my phone. I actually sold my computer last week and am trying to hold off as long as possible.

 

[AAAgent]

I would be careful of the banks. Looks like we're on the brink of a global economic collapse. Most people might not notice this but many major banks in Europe such as Monte Dei Paschi and Deutsche Bank are hanging on by a thread. Deutsche Bank just issued more shares onto the market and their stock dipped another 5-10% in a span of a week. They issued more shares to raise more capital to stay afloat but no news channel will tell you anything is wrong. All of our US banks and global banks have exposure to these banks so it will be a cascading effect when either one fails. When one goes down, they all go down. This time, I don't think there will be bail outs. I'm starting to keep as little in my bank as possible.

I've already pulled my 401k as well. Bought physical gold/silver, bitcoins, and cash. I would consider a credit union but my credit unions are so inconvenient.

 

[synergy1]

The banks in the USA are in a better financial situation than they were in 2007. Lately I have been paying attention to the subprime auto loans, and the fixed income products the banks are underwriting and selling. However a quick glance at the balance sheets of major banks, and some research don't lead me to believe our system is insolvent quite yet. I didn't read too carefully into their 10ks, and I do not understand how they mark to market their derivative products, so I could be wrong.

There is some contagion risk in Europe. Agreed. DB is levered up too high. But the US will continue to take protectionist monetary policies so in the case of possible contagion, they will act quickly to cut rates and provide stimulus in the form of QE again as needed. Is this bad? You betcha. But It is what it is, so i'll position myself thusly.