I'm in my early 30s and have a few hundred grand in investable assets. To date, I have held chunks of this 1) in savings accounts, 2) in 10-15 individual stocks that I periodically sell and buy, and 3) about half in a Wealthfront account with "6.5/10" risk setting.
I find the rush of buying and selling individual stocks to be exciting and borderline addictive, and I've actually done pretty well for myself (roughly doubling my portfolio'd value over 10 years). I am not a savant and don't actually know much about fundamentals, so I chalk most of this up to chance. It's also very stressful!
Wealthfront was a revelation for me. I always felt like my money was wasting away in a savings account, but never knew where else people keep money they don't need short term. Putting money in there and watching it grow without doing any work was a huge load off.
The new plan I'm considering is something like: Sell all individual stocks and put everything (except an emergency fund) into Wealthfront and ignore it for 30 years.
This would save me the anxiety associated with holding individual stocks, which I obsessively check every day. But I would also miss the rush of owning stocks that do really well, and potentially go mad if I company I would otherwise have invested in had a huge increase in value.
I feel reasonably confident that I could pick 5-10 companies that will, on average, do very well over the next 10 years. But the stress of watching these every day for the next 10 years will probably kill me before I can retire.
Can I have it both ways?
Submitted May 28, 2017 at 06:01PM by MediaMoguls http://ift.tt/2qpGi77
