These stages are not my own. I just uncovered them however they described my experience to investing to a tee. So I thought I’d share.
https://www.fiphysician.com/the-education-of-an-index-investor-an-future-book-by-rick-ferri/
1: Born in darkness; When I first started off I didn’t really know much. I invested heavily into MSFT and less so into JPM because well, I knew them. Ngl I got pretty good returns. Until bitcoin started to gain in popularity and I made a lot of money with that thankfully. However the more money I had I the more stressed I got, that’s when I learned about diversification and index funds. Which is a segue into...
2: Finds Indexing enlightenment; After I learned about index funds, I invested heavily into them. They seemed so easy and great.
3: Over-complicates everything; I found these index funds so nifty that I probably had upwards of 20 different index funds at one point, I was after the perfect portfolio of perfectly weighted small cap value, REITs, mid caps, and you name it. It then began to be very difficult to track and rebalance my allocations. This lead to....
4: Embraces simplicity; now I realize I was just shooting myself in the foot having so many indexes and ETFs. I’m slowly working on moving into just 7 funds (VOO, IJH, IJR, VNQ, VXUS, VNQI and AGG). I’m sure one day I’ll narrow it down even more, I’ll probably eliminate IJH and add it to VOO, or I’ll eliminate VNQI and add it to VXUS.
I’m not gonna lie, it’s been hard simplifying down. It’s stressful selling things I’ve become accustomed to having while also managing tax implications.
My opinion to everyone else who hasn’t hit stage 4 yet; good luck.
Submitted December 08, 2020 at 04:50PM by The_Texidian https://ift.tt/3qyqBFQ
