I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in the financial product and also share information that is public about the following financial product.
It is recommended that you should always consider visiting a financial advisor for independent financial advice before making decisions.
I’m often asked about my investments and when it comes to stocks, ETFs and REITs, how important is investing is in my life?
Investing is very important. But what I invest in… Let me share with you.
First, let me just say that when it comes to stock, ETF and REIT investments, planning is important for me.
There are 11 Global Industry Classification Standard (GICS) stock market sectors. And typically, if one or two goes bad, another two are much stronger. Needless to say, my strategy was to invest in each sector which are:
- Energy
- Materials
- Industrials
- Utilities
- Healthcare
- Financials
- Consumer Discretionary
- Consumer Staples
- Information Technology
- Communication Services
- Real Estate
The first goal was to plan on finding stocks I believe in, pays out dividends with a high dividend yield and ETF’s in that sector.
I used a spreadsheet and planned my purchase from there. Breaking down the sectors, inputting their 3 month low and high and their current price, along with dividend price, how often it pays and its yield. Also, notes especially the top holdings if it’s an ETF.
Depending on one’s financial status, I chose based on high conviction or based on price.
So, whenever you plan things out, you need to figure out what your financial goals are. Long-term investment, short-term investment, your level of risk tolerance? Personally, I do not have a high risk tolerance, so I avoid high-risk moves. And for me, investments I make are primarily long-term, but I’m not afraid to dabble in selling early.
So, in my life priorities. For me, it goes like this:
- Paying off all debt (This is priority)
- Do #1, so I can pay more towards my 401K ($19,500 is the max per year).
- Do #1, so I can put it towards my emergency fund.
- Do #1, so I can pay more towards a Roth IRA ($6,000 is the max per year)
- Do #1, so I can put more towards my life insurance.
- Do #1, so I can put more to my Index Funds.
- What money I have left to invest, I invest in my stock and cryptocurrency investments.
So, as you can see, my investments in stocks and cryptocurrency comes last. This strategy was planned to make sure myself or my loved ones are taken care of in the future after retirement or if I pass away.
If I have any regrets, I wish I had the fortitude to focus this earlier in my life and stick to it. I started investing at a young age, but not towards a retirement. After all, I felt I was young and didn’t want to see my money going to something so far into the future.
Granted, while I’m glad I did invest since I was 23-years-old, I do wish I had the investing fundamentals back when I was younger.
So, if you are younger and reading this, I know it may not makes sense to you, especially if you want to drive a nice car, buy the latest fashion or technology, but seriously, investing in your future is not only preparing you for that time when you stop making income at work.
You’ll like the fact that with smart financial sense, you are prepared for emergencies, you prepared for your and your family’s future but also the ability to travel around the world or something to enjoy your life because you were able to work hard and deserve it (sure travel does cost money, but I do believe if you can eliminate your debt and still invest, for your sanity, treat yourself to something new, different but won’t put you into debt.
As much as I try to live a frugal life daily, a yearly splurge (not a monthly or weekly splurge) helps in reducing any stress in your life and knowing that worked hard and deserve it).
