It is important for me to remind everyone that I am not a money manager. Everything I write about is a sort of diary as to what I do. Essentially it is for education purposes. and you can do with it as you will. As a professional life insurance and annuity broker, I need to make this clarification. I also want to make you aware that if you have questions for me, I have allotted availability on my Calandly to speak with reader.
In order to set the stages let me give you a simple breakdown of what I do. Let’s assume I had $100,000 overall in my available monies to do this with. The first thing I would do is to take 80% or $80,000 into something absolutely no risk like a savings account or as in my case FIA’s or fixed index annuities. It is with these FIA’s that I insure my wealth as it builds. You can use other things as well like savings accounts, Bank CD’s and if you are under 50, a great choice is IUL’s or Indexed Universal Life.
Before I move on, I want to stress to you how important it it is to have a plan with what you are going to me doing with the 80% at all times. FIA’s and IUL’s are my professional business. Here is my website. In addition there is much information online about these 2 products. Just be sure and vet the source as I always do.
Now to the wealth building portfolio. This is the meat and potatoes of what can make you incredibly wealthy if you are disciplined.
I am going to explain to you here in detail how to use the information each Sunday evening and Monday morning when the market opens.
In reference to the above scenario, if you had $100,000 as mentioned you would be starting with $20,000. I hope that is simple enough to understand,
In my weekly update, I will name 2 different stocks along with their symbols. An example might be Microsoft MSFT or Tesla TSLA.
Again, since I am not an investment advisor, it’s up to you what you do with the 2 picks.
Here’s how I do it. If I’m starting with $20,000, I simply take 1/2 or $10,000 for each stock. Pretty simple.
The next week you will close the positions from the week before and divide the balance by 2 and repeat the process.
Let’s look at some examples. Let’s say your 2 stock portfolio rises 6% for the week. Your total would then be $21,200. The next week, you would have $10,600 for each stock. You must also do this on down weeks. Maybe the next week your portfolio drops 10%. Your account value is $19,080. That means $9540 each stock for the upcoming week.
If you slowly read the last couple paragraphs you will get it.
One important last thing that I personally do with all of my portfolios. At some point your little 20% allocation will be dramatically higher than your 80% in safe money strategies. When your $20,000 grows to $120,000 and your safe accounts are at $83,000, your total is now $203,000, right?
At this point it would be to diversify into other 100% returning portfolios. The good news is I have many.
One last thing. As your portfolios grows, you will need more and more strategies to employ. I have and use several. Also, if your starting point is higher than $100,000, you will want to definitely want to employ more than just this one strategy. If you are in this situation right now that would warrant a conversation, so go ahead and use that Calendly link in the prior paragraph.
See you all on Sunday!