How To Invest Your First $10K

In partnership with

Quote

“There may be better investment strategies than owning just three broad-based index funds but the number of strategies that are worse is infinite.” - John Bogle

Find out why 1M+ professionals read Superhuman AI daily.

In 2 years you will be working for AI

Or an AI will be working for you

Here's how you can future-proof yourself:

1. Join the Superhuman AI newsletter – read by 1M+ people at top companies

2. Master AI tools, tutorials, and news in just 3 minutes a day

3. Become 10X more productive using AI

Join 1,000,000+ pros at companies like Google, Meta, and Amazon that are using AI to get ahead.

Sign up and start learning AI

How To Invest Your First $10K

Investing can be intimidating.

Hundreds of stocks symbols, different account types, and fancy acronyms can scare people away before they even get started.

These are the exact things I’ve had multiple friends tell me over the last year who are looking to get started investing.

To help you (and them) get over those hurdles I’m going to share how I would have invested my first $10,000 after “learning the hard way” when I started.

Let’s get into the portfolio structure:

Portfolio Overview

Restarting from scratch I would first ensure that I had a solid base of ETFs (exchange traded funds that are basically a basket of stocks). These are great as you get exposure to hundreds of companies, so if one fails, it won’t tank your portfolio. Yes, I’ve been there.

Once a good base was established I would start buying some individual stocks to get an idea of what it takes to pick individual companies. How to analyze balance sheets, looking at cashflow statements, listening to earnings calls, etc.

This approach keeps your $10k primarily invested in index funds, while still giving you the opportunity to explore individual stocks and see if it is something you enjoy (and have time for).

Allocation

75% ETFs

In the beginning, I would ensure my portfolio is at least 75% ETFs. Later on you can lower or raise this based on your success (or failure) of picking stocks.

As far as which ETFs, here is how I would have done it today if I was 18 starting again. This allocation would give you primary exposure to the US market, with additional growth potential (being young), along with a touch of international.

• 60% - $VTI - US Total Market

• 20% - $VUG - Large Cap Growth

• 20% - $VXUS - International

If I was older, let’s say in my 40s I would swap the growth fund for a bond fund. Last but not least, set these three up to auto invest every month.

This is a simple portfolio you can spend 15 minutes setting up that will likely outperform almost every professional money manager of the next couple decades.

(PS here is a 7 step guide to finding great ETFs)

25% Individual Stocks

The fun part of investing is being able to bet on individual companies and have the potential for that big winner. As they say, the best way to learn is to do.

That is why I would have done a 25% allocation to individual stocks to start. Depending on your goals you can pick high growth stocks, those that pay dividends, or boring slow risers.

No matter which you choose, having some individual stocks will let you get a feel for the time commitment required to properly analyze individual stocks, as well as the risks of betting on a single company.

I’d highly encourage trying to do proper analysis on these picks for the learning experience. Don’t just buy what Uncle Bobby said he thinks is going to rip.

Conclusion

The 75/25 approach is a great starting point that allows one to build a base of low cost ETFs (here is what high fees will cost you), while also giving one the chance to experiment with individual stocks.

Later down the road if you want to be more hands off (like me) you can make this 90% or 100% auto invested ETFs.

If you have good success with individual stocks and have the time to commit to research, then make it 50/50.

No matter the long term plan, the 75/25 approach is one of my favorites for new investors.

Don’t hesitate to shoot me a message if you are a new investor looking to get started.

Here is to the first $10K 🍻 ~ Cade

Cade’s Picks

The Housing Market Just Flipped - New video from Graham Stephan recapping the latest housing data. For the first time in five years (I’m afraid to say it) buyers might have the advantage.

I Tried To Make Something In America - Is America’s ability to manufacture dying? This is cool video from the Smarter Everyday on the difficulties of making a grill scrubber in the USA. For anyone looking to invent or create a new product - this is great watch that will help one understand the process of prototyping, testing concepts, and dealing with suppliers.

Chipotle Burrito Bowl Statistics - A Wells Fargo analyst who ordered the same burrito bowl 75 times at eight different Chipotles in NYC to prove the portion size inconsistency. It is exactly what you would expect.

Best Memes

X had a field day with the Elon and Trump fallout.

Check ‘Em out

Below is a list of featured products I have vetted personally, created, or used. These offers are just for you:

• High-Yield Cash Account - Earn 4.1% on your savings

• Get a Stock Mug - Custom designed by your boy

• Book a Call - 30min 1on1 with Cade

• Public - Trade stocks, options, and crypto

• Empower - Track all your investing accounts

• Beehiiv - Create your own newsletter

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.