Investing In 2020?
I get the question “What am I investing in 2020?” so often I figure it’s about time I just write up a post on it as it’s easier to just share this post vs retyping this out every time. Also by the way I am not a professional advisor everything I say is my opinion and works for me. You do what you want with your money.
What The Hell Investment Vehicles Do I Use?
I try to keep all my investments in 2020 and savings simple. Because the simpler investing is the easier and more likely we will stick to it and keep doing it. My words of wisdom are to keep it Simple, Fun, and Profitable.
My words of wisdom are to keep it Simple, Fun, and Profitable.
Let’s get to that list of investment vehicles in 2020.
- 401K (TSP)
- Roth IRA
- Taxable Account (Main One)
- Taxable Account (Ninja Skills One)
- Crypto
Yup, that is all I use so far and the only thing I might add is some REI.
I love using Personal Capital to track all my investments! The graph below is my current updated investments. They keep going up.
What’s Next?
That is a big question that I’m not 100% sure about. I have built a pretty solid wealth foundation at this point. I could endeavor to put more into some risky investments like my BTC. I also still am throwing the idea of buying some real estate as a rental for “passive” income. The local market here in San Diego is not great for it though. I am not entirely sure how I feel about a rental out of state just yet. Thankfully I am in no rush because I have built and laid the bricks to this wealth stash. It is super stable and as of right now, I could draw about $12,000 – $14,000 from my investments every year forever. This might not sound like a lot to some people. But this is about 50% of my expenses here in San Diego. On top of that, this is passive money I would earn sitting on my computer typing!
I’m considering doing an Investing Workshop! Doing it over Zoom and adding a one-on-one session with me on top of the workshop. I think it would be a cool event.
But What Funds Do You Use?
I keep it simple and sweet with my investing in 2020 funds! Yet I did not always keep the funds so simple. I used to tilt toward value funds especially that of small-cap value. That was not super hard either but decided it was time to fully simplify the process. Now please don’t fall asleep on me once I tell you what funds I use for my investments in 2020.
- 401K – S&P 500
- Roth IRA – VTSAX
- Taxable Account – VTSAX
- Taxable Account – BRK. B, APPL, FB
- Crypto – BTC & LTC
It’s that simple, no really it is!
There Is No Way That Works
See here is the thing people almost always chase returns. They want to get into the hottest stock or the latest hot investment. They are searching to get rich quickly. It’s a cultural issue we Americans have created with wanting things fast. We live in an age where we want everything instantly at our fingertips. So why should being wealthy be any different? Because it takes time to build a legacy. Warren Buffet did not become a billionaire overnight. We see these wealthy people and want to be where they are now. Yet we fail to realize we are seeing them at the end of the journey. We did not watch them throughout the journey…
We live in an age where we want everything instantly at our fingertips.
It’s like a race, there is the start line. We get nervous and are unsure about it. But then the whistle blows and your feet start to slowly move forward. Then there are times during the race when you get downright tired and want to quit. You remind yourself how far you have come so far and you are almost at the finish line. Eventually, you cross the finish line and you are proud of what you accomplished and now you enjoy what you just achieved.
Yet for some reason, we want to go from the start line to the finish line without having to run the race at all.
Fuck Instant Results
That’s right I said it! It’s time we enjoy the race so to speak. Trust me you will learn a lot about who you are and what you value in the journey to FI/FIRE. At this time I ask everyone to say FUCK INSTANT RESULTS.
It’s the journey that is important. Learning and growing in life is what it’s all about. Without growing and learning you won’t ever be able to become wealthy. Ever notice all lottery winners become broke a few years after winning? This is because they did not learn and grow into wealth. So they spend every dime and dumb shit, to be frank. It’s the same with many sports players and even movie stars. A lot of these people file for bankruptcy and never really get ahead.
It Works And The Math Shows This
The market has averaged around 10% returns over the last 100 years. Think about that for a minute. What does that look like visually?
- $500 – $50
- $5,000 – $500
- $50,000 – $5,000
- $500,000 – $50,000
As you can see with time, and investing that 10% gives you a powerful tool. Now you can see why all you need is average returns & time. That is the secret to building wealth. I get it it’s not cool, sounds boring, flashy, or whatever else everyone thinks. The reality is I’m proof that you can build incredible wealth with index funds. I’m getting closer to the half-million mark!
I get it it’s not cool, sounds boring, flashy, or whatever else everyone thinks.
Yet truth be told with this Simple, Fun, and Profitable approach you will beat 90%-99% of investors out there who trade stocks, buy crypto, and other gambling approaches like margins and options.
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I like to keep investing simple, too. The best book I’ve read on it is “The Simple Path to Wealth” by JL Collins. Oh, and all the same info is on his blog for free, under “The Stock Series” if you don’t want to own the book. Living the RV life, I imagine storage space is minimal!
My approach to investing might be even simpler than yours – 100% index funds. Catching up retirement savings after a late start was important to my husband & I, so we took an aggressive approach by going with 100% stocks in low-cost index funds. We’re in it for the long haul – set it and forget it has worked for us.
Thank you for your service.