Sorry if I already missed it, but it would be interesting to see how much your home equity influences the numbers over the past couple years. I know for me, my house has gone from 650 to 850 in the last two years…
Also, the title should be *Our net worth ;)
Do I want to diversify my investments? Yes. But in my case I sunk all my investments for a few years into AAPL long enough ago that my average gain is 2000% +. So I'm sitting on a ton of it, around 6000 shares and it makes up about half my portfolio. Should I sell some? Probably. But it's hard to do when it's done so well for me...
Home equity would count in my opinion, but technically Uncle Sam owns 22% of your 401k funds assuming that's your tax bracket and it's not a ROTH. I would multiply your 401k funds by 0.78 to calculate the present day value of that asset. This leaves you short of the $1M mark for now, close though.
C. Schwab wrote:
Do I want to diversify my investments? Yes. But in my case I sunk all my investments for a few years into AAPL long enough ago that my average gain is 2000% +. So I'm sitting on a ton of it, around 6000 shares and it makes up about half my portfolio. Should I sell some? Probably. But it's hard to do when it's done so well for me...
similar story. It sure looks fairly obvious in retrospect. But i guess that is usually the case in looking back, but rarely when faced with the decision of what to do going forward.
millionaire ftw wrote:
Ezrun wrote:
Guys the thinking on this thread is really disappointing , I mean you guys don't even understand basic investing
I said to diversify by going with some real estate ETF
In other words a broad Market index fund will crash if the market crashes
A real estate ETF will probably not....
It'll give you some diversity
Yes you own a little bit of real estate with a broad Market ETF but it is a minuscule amount and will not help you if the overall stock market crashes
I said that it's a better investment to go with a small cap versus broad Market ETF. Yeah it's slightly risky and less Diversified but my point is that it's over all proven to be a better return on money...
Put some, not all, in small cap ETF....
But my main point is that to have everything tied up in the stock market means that you will take a big hit if stock market crashes
You can diversify by having some of your money in Investments that will not crash if the stock market crashes such as real estate....
Anyway..... amazon has had a 1000x return in the last 22 years an index fund 5x.... so just because .001% is amazon is meaningless
10 k in amazon would be 10 million, vs 50 thousand!
I guarantee amazon beats an index fund 5, 10, 15, 20 year time periods... and considerably.... lucid and roku will crush it next 10 years by even more....
You’re stating that investing in broad market, you’ll be risking it when market crashes. Then, you bring up about investing in small caps as well as bring up about ROKU. ROKU has dropped over 50% from its high within the last 6 months. If you’re in broad market index, that kind of drop may happen in a decade. Or actually, it may not even happen in a decade. Yea, if you’re playing with some pocket change, losing 50% is not a big deal. And when you say to diversify and if you only buy little bit of ROKU, it doesn’t make that much of a difference with your portfolio if it goes up by a ton or if it tanks. So, by just being in broad index will perform similarly.
What is your net worth by the way? The way you give out investing info, you sound like you’re in your 20s or early 30s so I’m assuming you don’t have much skin in the game. My advice to you is to keep your investing strategy as simple as possible and stick to it. What’s important for you is to continue to increase your contribution so you get at least $100K. Then, you will start to see your investments take off.
My net worth is way more than ops....
Roku is still up 10x in the last 4 years... crushing a broad market index fund.... it's down 50% from 20x gains... that is huge.....
And vanguard small cap has outperformed broad market in any 5 year time span, it's a fact Google it....
Here's simple... 40 percent in amazon Roku and lucid.... 40 percent vanguard small cap growth... 20 percent in reits.....
I guarantee this crushes a broad market index in any future time period 5 years or more.....
I'd keep an eye on beaten down biotechnology ocgn, dare, ethereum after next crash and meta verse if u wanna play.....