Second Opinions on my Current Allocation 21y.o.

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Entropy105
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Joined: Mon Dec 18, 2017 11:40 pm

Second Opinions on my Current Allocation 21y.o.

Post by Entropy105 » Tue Dec 19, 2017 12:09 am

Just turned 21, grew up with poor alcoholic parents who know nothing about money. College dropout. Interested in real estate, feel I've contributed enough to EFund to begin looking to save for rentals (100k is a good house here). I selected the stocks I bought on somewhat of a whim so maybe I should be invested in something else. Would like to reach 1m by 30 as an optimistic goal. Current allocation is as follows:

Assets:
20k Checking
12k Brokerage Account in sflnx + KHC
10k Alternative Investments
5.5k Roth IRA in VWNDX
2.6k HSA @ bank
40k Durable Business Assets
---
Debts:
2k CC debt (not revolving debt)
Last edited by Entropy105 on Tue Dec 19, 2017 6:24 pm, edited 2 times in total.

NightFall
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Re: Second Opinions on my Current Allocation 21M

Post by NightFall » Tue Dec 19, 2017 7:57 am

I read 21M as your assets and not your age. It sounds like you are invested in alternative investments, individual stocks, and looking to get into real estate. Most here would avoid the first two, and some would avoid all three. To get to 1M from 0 in 9 years requires saving just over 72K/year at 7%. That requires either a high salary to support that savings rate or a higher rate of return. So your goal may be optimistic. You might spend some time reading the wiki here as well as www.etf.com/docs/IfYouCan.pdf.

veindoc
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Re: Second Opinions on my Current Allocation 21M

Post by veindoc » Tue Dec 19, 2017 8:17 am

Congratulations on an ambitious goal and for saving so much money at a young age! Most Bogle heads will advocate the get rich slowly method with a high savings rate and 3 fund approach. You seem to want to get rich quick. What are the alternative investments? Are those the collection of stocks you just randomly picked?

What are you doing now and what do you want to do? You mentioned real estate but it’s hard to know if you are serious or you are looking for that get rich quick route.
I would think seriously about going back to school (don’t bother if you have no idea what you want to study), or get a real estate license and pick up some DIY skills, or continue to do what you are doing now developing your skills along the way.

As far as your current finances go, I would sell the individual stocks and go with a stock market index fund. Get rid of the credit card debt. Paying interest on 2k is silly when you have 20k in the bank.

Jack FFR1846
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Re: Second Opinions on my Current Allocation 21M

Post by Jack FFR1846 » Tue Dec 19, 2017 8:27 am

Sell off the alternative investments, and single stocks.

Invest in a 3 fund approach detailed here: https://www.bogleheads.org/wiki/Three-fund_portfolio

I would echo the idea of going back to school to better yourself. It's the best investment you can make.
Bogle: Smart Beta is stupid

iasw
Posts: 233
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Re: Second Opinions on my Current Allocation 21M

Post by iasw » Tue Dec 19, 2017 10:56 am

. I selected the stocks I bought on somewhat of a whim so maybe I should be invested in something else.
Yes, get out of those and the alt investments and into a total market index fund. Don't try to pick winner stocks. Buy the whole dang market.

Read the books suggested here and the wiki.

Boosting your income and education will be one of the biggest factors in hitting your goal. You've got this.

runner3081
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Joined: Mon Aug 22, 2016 3:22 pm

Re: Second Opinions on my Current Allocation 21M

Post by runner3081 » Tue Dec 19, 2017 11:20 am

NightFall wrote:
Tue Dec 19, 2017 7:57 am
I read 21M as your assets and not your age.
Same here!

I did the same thing when I was younger, individual stocks. Just stay away from those and go with Index funds.

PFInterest
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Re: Second Opinions on my Current Allocation 21M

Post by PFInterest » Tue Dec 19, 2017 11:34 am

invest in yourself. only way youll get to a MM by 30.
also ditch the individual stocks.

Grt2bOutdoors
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Location: New York

Re: Second Opinions on my Current Allocation 21M

Post by Grt2bOutdoors » Tue Dec 19, 2017 11:41 am

Why are you carrying credit card debt? Take $2K from checking account and pay it off.
Great job so far on your personal finances, doing well for someone your age.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

heybro
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Re: Second Opinions on my Current Allocation 21M

Post by heybro » Tue Dec 19, 2017 1:13 pm

Entropy105 wrote:
Tue Dec 19, 2017 12:09 am
Just turned 21, grew up with poor alcoholic parents who know nothing about money.
I like you. I like you already. If I may, have you answered the question as to 'why' you want this out of life? What is the reason, what is your goal besides FIRE. I don't want your past to completely define you. The financial goal may not heal anything nor make you feel secure (as I've learned from other posts on here similar to yours). Congrats on your road to success - both personal and financial!

Grt2bOutdoors
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Re: Second Opinions on my Current Allocation 21M

Post by Grt2bOutdoors » Tue Dec 19, 2017 1:24 pm

heybro wrote:
Tue Dec 19, 2017 1:13 pm
Entropy105 wrote:
Tue Dec 19, 2017 12:09 am
Just turned 21, grew up with poor alcoholic parents who know nothing about money.
I like you. I like you already. If I may, have you answered the question as to 'why' you want this out of life? What is the reason, what is your goal besides FIRE. I don't want your past to completely define you. The financial goal may not heal anything nor make you feel secure (as I've learned from other posts on here similar to yours). Congrats on your road to success - both personal and financial!
+1 It's not the OP's past, it's his parents past, and while they may have had some difficulties, it's not their fault they know or knew little about money. Knowledge is acquired through teaching, somewhere along the way the posters on this forum were taught. The knowledge may have been acquired from picking up a magazine, a book at the library, a family member or just innate curiosity that led to additional investigation. Still, the knowledge was transferred. In the OP's case, the knowledge transfer did not occur at the parental level, however, the first step in the right direction was the initiation of this post. Let the knowledge transfer begin........ :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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SpringMan
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Re: Second Opinions on my Current Allocation 21M

Post by SpringMan » Tue Dec 19, 2017 2:52 pm

Suggestion would be that the OP edit the title of their post if they really don't have an allocation of 21 M. I was a bit curious how a child of poor alcoholic parents inherited 21 million.
Best Wishes, SpringMan

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