3 Unique Investing Tips

Finally we have been able to relax some with the market drama calming down a bit.

The biggest news of the week being Mr. Jeff Bezos stepping down as Amazon CEO in his prime. (Stolen from @dougboneparth)

In my portfolio I did not make any major moves besides adding $VB (small cap ETF) to my Roth IRA. Yes, I know they have already had a massive run up but after reviewing the diversity of my Roth I decided to add more small cap exposure.

Next, I’ll be looking to add an emerging markets ETF.

With that said I’m taking this time to get back to regular scheduled content and give 3 quick investing tips you might not have heard before.

“Wealth is the ability to fully experience life.” - Henry David Thoreau

Separate Accounts

I’ve mentioned this one on Twitter a few times before. For those who enjoy to take part in speculative investments this is a must.

Having a smaller, separate account where one can go actively trade if they get the itch is another safety layer. Instead of interfering with their long term portfolio one can carry out their experiments in a safe place. So incase those experiments blow up the effect is minimal.

Currently the positions in my “speculative” account are up 35% on average.

I’ll take it.

Know Your Numbers

How much money you would like to retire on?

What would the balance on your account need to be in order to provide enough cashflow to live off of?

These are important questions that often get looked over by investors. My reason for this is that it’s important to know if your current investing habits will allow you to reach that number. If not, you can make changes accordingly.

Having “a number” also makes the entire process more enjoyable since there is an overarching goal to achieve.

Keep An Investment Journal

This one is more for those who enjoy picking individual stocks and is something I am trying to do better myself.

Over the long term this can come in handy when looking back over your thoughts from previous market events, earnings reports, and news. As an investor you have likely had moments where you missed opportunities and thought “why didn’t I see that coming” or “how come I failed to realize x.”

By journaling I’m hoping to understand these moments and use them to improve my investing.

My main approach to investing is using ETFs which closely resemble index funds. Index Fund Investing 101 gives all the details one needs to construct an ETF portfolio that will last for generations.

It’s actually what inspired me to add small cap exposure in my Roth IRA.

On top of that it also includes chapters on target date retirement funds, roth vs traditional accounts, and portfolio rebalancing.

The GME rocket was…

Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you next week!