Hello Reddit! This is my maiden voyage on Reddit and in the Investing subreddit. Fair warning, my age, debt situation, and potential income figures may or may not be tweaked slightly to remain as anonymous as possible. Nevertheless, it shouldn't change the overall situation I find myself in.
I am a man in my 20s, no kids, no savings, and have around $20,000 in debt (all federal student loans paid ahead 5+ months). But I am also unemployed. My plan is to find a job that pays around $30,000/year. After that is taken care of I plan to start seriously saving. I have always been careful with money but I just now have looked into investing as an option. My risk tolerance is about a 3.5 out of 10 if 1 is risk averse and 10 is risk-taking.
If you could, please give feedback on both an overall portfolio, and an investment portfolio. My overall portfolio is based on a $600,000 value at retirement and I wrote it as follows.
Cash & Equiv.: (30% = $180,000 in Checking, Roth IRA, CD, Savings)
Property: (25.83% = $155,000 in Personal Housing)
Mutual Funds: (16.67% = $100,000 in Conservative Allocation Fund, Aggressive Allocation Fund, Small Cap Blend, Mid Cap Growth, and a Target Date or Payout Fund) about $20k in each fund.
Fixed Annuity: (10.83% = $65,000 premium) for likely 15 yr term
Bonds: (10% = $60,000) Municipal Short and Intermed. Corporate
Commodities: (3.33%= $20,000) Cotton, Heating Oil, and Wheat
Precious Metals, Gems, Collectibles: (3.33% = $20,000) Probably Copper, Silver, Sapphires, Jade, Pearl, Music. Instruments, and small collectibles
Clearly this is subject to change; this is the portfolio I had written out for retirement at 60 years old using a 5% withdrawal rate each year. Don't feel stressed if you can't answer all my questions. So, Investors of Reddit, I ask you.
- Is my portfolio missing any important components?
- Is $600,000 plus annuity payouts and dividends enough money?
- Do investors look at before or after tax returns when deciding on a fund or etf?
- Are the categories of my portfolio sound in judgement and reason?
- How can I neutralize the risk of inflation and business cycles?
- Your general opinions on Asset Allocation Funds.
- Your general opinions on annuities.
- Any other questions related to my post.
To help you, I will give you some personal preferences about me as an investor.
I would like to get an average return (after-tax, pre-liquidation) of 6.5% on the mutual funds and bonds. I will NOT invest in single stocks, individual sectors, cryptocurrency, etc. due to my risk tolerance. I prefer funds that have the Information Technology sector as less than 20% of the weight overall (I have a superstition of IT heavy funds somehow failing someday). I also prefer funds with beta levels of 1.2 or less but am not 100% against higher levels if it means having the right mixture of stocks. I would like fair exposure (approx. 10-15%) to the European market in the allocation funds and full American exposure in the blend/growth funds.
I understand this is a lot of information, but I am very excited to hear the opinions of this community. Please answer as many questions as you like and I will try to reply to as many as I can. However, I would like some feedback for questions 6 & 7 in particular. Thank you.
Submitted January 25, 2018 at 05:01AM by CuracaoBound http://ift.tt/2DENOlb
