This Is Where I Invest All My Money

October 17, 2022

I’m diversified across multiple asset classes, here’s where I’m invested.

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Today we’ll be taking a deep dive into where I invest all my money.

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This Is Where I Invest All My Money

Few Things Before We Start

  • I’m not a financial advisor

  • Do your own research before investing in anything

  • This is not written to brag, it’s to inspire and share my journey to financial freedom. Plenty of 23 year olds have more money than me.

  • My risk tolerance is different than yours, what I pick may/may not work for you.

ETFs

I invest in ETFs and have become a huge fan of how effective and passive they are. I originally was against the idea of not picking my stock allocations and paying fees, but after seeing how over 90% of stock pickers at hedge funds don’t meet their benchmark returns over a 10 year span I’ve changed my mind. Also, after seeing how the list of the largest companies in the world has drastically changed in just 20 years, I know it’s going to be very difficult to stock pick long term.

Here’s the ETFs I own, what they hold, and the percentage of my portfolio they are:

  • SPY - tracks the S&P 500 - 20%

  • VBR - tracks US Small Cap Index - 1.4% **

  • VSS - tracks International Small Caps - 1.4% **

  • VGLT - tracks 10 year or longer treasury bonds - 1.3% **

  • VNQ - tracks US Real Estate Index - 0.7% **

  • VNQI - tracks International Real Estate - 0.6% **

  • Total ETF Portfolio Percentage - 25.4%

I’d like to add EEM and IWM in the coming year, as they would provide me with exposure to emerging markets and small cap stocks, both of which outperformed during the last recession.

** = held in my Roth IRA

Individual Stocks

I hold 26 individual stocks. I started my investing career buying individual stocks exclusively, but have scaled back as of late. I will still buy individual stocks in the future because I love researching companies and finding those companies that I think are best. Who knows, one might be a huge winner for me in the future! I also feel like there’s an itch to pick stocks in most investors’ brains that just needs scratching. X% of my portfolio is held in individual stocks.

REITs

REITs have outperformed the stock market over the last 20 years and are a great addition to any portfolio. Real estate isn’t as prone to boom and bust cycles of stocks due to the lesser speculation about future returns. It’s probably the most tangible and long accepted asset we have and I’m looking to add more exposure in my portfolio. The only downside of REITs is that their dividends are taxed as ordinary income. REITs make up 3.6% of my portfolio.

Cryptocurrency

Cryptocurrency gets a bad rap due to some less than ethical players in the space, but I believe in the long term success of a few projects. I most believe in Bitcoin, it’s the longest standing cryptocurrency, has the most users, and has a tried and true proof of work method of validation. I also mine Bitcoin as an additional passive income streams. I don’t hold many growth stocks, so I do most of my speculating in the realm of crypto. Overall, crypto makes up 2.9% of my portfolio. I hold:

  • Bitcoin

  • Ethereum

  • Chainlink

  • Cosmos

  • Tezos

  • Axie Infinity

Precious Metals

I hold gold as a hedge to equities and historically investors have flocked to gold as a safe haven during times of economic distress. I hold physical gold and gold by way of ETF. My gold holdings account for 3.35% of my portfolio.

Private Real Estate

I love the ability to own private real estate. By using Fundrise, I can purchase shares of funds that hold single family rental developments, apartments, and commercial properties. I receive a portion of rents through dividends and enjoy the capital appreciation of the real estate. Private real estate accounts for 2% of my portfolio.

Wine

Wine has been a respected asset since 6,000 B.C. and has outperformed the stock market for decades. It’s very uncorrelated to the market and provides much needed stability in times of economic distress. I use Vint to by fractionalized shares of investment-grade wine collections ranging from Napa Valley to Champagne France. Wine only accounts 0.2% of my portfolio but I’m looking to increase my exposure as I get more comfortable with the wine investing industry.

Cash

One thing I’ve struggled with is keeping cash on hand. I believe that any dollar uninvested is losing out to inflation and while I’d like to keep cash in CDs or short-term treasury bonds to counteract this, these investments have been yielding negative real returns when adjusted for inflation in 2022. I’ve learned though that you don’t want to have empty pockets when markets start to draw down, so I’ve begun to stack some cash to take advantage of lower prices. I’m making a pledge to myself that I’ll begin keeping a 5% cash position in bull markets and deploy that cash whenever prices drop. Currently, cash makes up 5.5% of my portfolio but I’ll be putting it to work as equity prices drop.

Looking To The Future

2 assets I’d like to add to my portfolio in the future are farmland and single family investment properties. Farmland has incredibly low volatility and is always in demand. People need to eat after all!

Single family rentals provide a unique niche in the real estate market in my opinion. As a renter, your options are pretty limited and you’d likely have to live in an apartment. But what about that family that wants the ability to live in a house but doesn’t want the mortgage or hassle of keeping up with repairs? That’s where single family rentals comes in. I hope to own at least one rental property in the future.

Memes Of The Week

BRB while I rinse my eyes with bleach.

Jerome Powell has had a personal beef with my portfolio this year, at least now I can see the math behind why:

Okay, maybe I’m not done rinsing my eyes with bleach. Can someone help me short NFTs?

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Helpful Resources Are Here!

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Here’s my list of the best resources for financial freedom, enjoy!

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