How to allocate your portfolio? · Invest & Retire Community

How to allocate your portfolio?

Recently, I've spending a lot of time on how to best allocate a portfolio which creates a "fail-safe" environment for you.

Meaning that even in event where one of the strategies doesn't work out, you will be able to recover.

It also allows you to take high-risk opportunities where the return may be 500%+.

The allocation is as follows:

50% index funds - long term (This should grow at 10-20% per year)

30% monthly passive income (This will give you an immediate cashflow boost)

10% - 20% high return 5x trades (rare and must be limited to less than 20% of your entire portfolio)

Rebalancing:

For monthly passive income, you rebalance every month. Take out the profit to pay for your expenses or invest in the other two strategies.

For high-return 5x trades, you rebalance after every successful trade. Once you have one successful trade, take out at the minimum your initial investment before investing again.

Where do you rebalance to? You rebalance to the index funds (50%)

If something bad happens, you reallocate a smaller amount out of index funds to fund the other two strategies.

This allows you to play the game forever and ever. The infinite game.

Cheers,

Eric

----

Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

Free webinar - how to get 30%: https://5mininvesting.com/free-case-study/

In March, my goal is to help 20 people without a financial background to master investing.

Investing Accelerator is designed for people without a financial background.

The goal is to achieve 30% return per year.

In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth.

In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.

If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year.

During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve.

If you have any questions about the program, you can ask during the call as well.

Schedule a call here: https://bit.ly/48mJlgR

Remember to go to the Classroom tab for additional investing resources.

15 comments