How do you handle "fun money"?

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CurlyDave
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How do you handle "fun money"?

Post by CurlyDave »

I have read the advice on fun money and think it is wise to have 5% or 10% of a portfolio devoted to fun money so I can scratch that itch to pick stocks, wheel and deal, and just plain do something more interesting than buying index funds, which we all know is about as exciting as watching grass grow.

BUT, there is a lot of room for interpretation on the nuts and bolts of this.

Lets say I start with a portfolio that is 100% stocks, possibly VOO or SPY just for the sake of argument. Then I decide this is nice, but I can have a little more excitement in my life by investing a little bit of it more aggressively. So I take 10% and buy a few individual stocks, and I establish a second account for this money.

First question: do I keep putting 10% of my contributions into the fun money account, or do I only keep the original amount in there?

Then lets say the account does well, really well, and grows to 20% of the total portfolio in a year. Do I stop adding to it, or do I keep putting 10% of contributions in? Or, maybe I take money out to reduce it to 10%?

Or, suppose I lose it all? Can I ever replenish it?

Personally, I am in the let it ride camp. If the fun money grows to more than the recommended percentage, I won't add to it, but I also won't subtract from it.

If it sort of keeps pace with the rest of the portfolio I think I should put more in with each contribution.

If I lose it, I am not very good at this and shouldn't throw any more away.
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JoeRetire
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Re: How do you handle "fun money"?

Post by JoeRetire »

It's your money, you can do whatever you like with it.

You can try to pick a winning stock. You can purchase lottery tickets. You can give it to your cousin Bernie to invest in his "sure thing". Or you can get coins, put them on the floor, and roll in them.

Once you lose your fun money, you can then decide how much more fun you can afford.

I have plenty of fun in my life without giving that label to a pot of money. I don't seek my excitement through my investments.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
PFOS
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Re: How do you handle "fun money"?

Post by PFOS »

My only hard rule when it comes to fun money is that I always tell my wife what and how much I'm buying because she will let me know if I'm getting carried away. Beyond that, I really only get interested in playing around with investments when things get chaotic (e.g. March 2020). Honestly, I assume it's a form of retail therapy for me to deal with the stress. If things are going relatively smoothly, I just put money into VTI or equivalent each month because I figure a rising tide lifts all boats
barnaclebob
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Re: How do you handle "fun money"?

Post by barnaclebob »

I spend it on woodworking tools and boat upgrades.

But 10% of your money underperforming by 10% is pretty much the same as giving it all to Edward Jones...
Robot Monster
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Re: How do you handle "fun money"?

Post by Robot Monster »

I think the money you need to satisfy your basic financial goals shouldn't be funny money, but anything above that can; you can play around with money you really don't need.
placeholder
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Re: How do you handle "fun money"?

Post by placeholder »

Gambling isn't fun for me so I spend it on actual fun like hockey tickets (well someday).
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nisiprius
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Re: How do you handle "fun money"?

Post by nisiprius »

I see a problem, rarely discussed, with the whole "fun money" concept. The premise is that you are keeping the amount below the danger level--that if you lose it, it is not going to seriously interfere with your retirement or other financial plans. It is not an amount that is going to make you throw up when you realize that you need to explain it to someone whose finances are linked with yours.

But surely the fun, the thrill, the visceral excitement comes from knowing that you are risking a dangerous amount? Isn't the danger the whole fun?

If you risk a safe amount, you do not get the danger, but do you get the "fun?"
...buying index funds, which we all know is about as exciting as watching grass grow...
I did not find this boring:

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JS-Elcano
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Re: How do you handle "fun money"?

Post by JS-Elcano »

I currently have around 7% of my invested money in single stocks and my goal is to let it not go over 10%. The vast majority of it is in my taxable account. Unlike my biweekly investments into my pretax retirement accounts, I do not invest in single stocks regularly. Instead, when I have a stock that I like and I am below my 10% threshold, I buy it, if I am at or above 10%, I don't buy it. Because I invest so much more in my retirement accounts it has never happened that the single stocks grew above the 10% threshold.

I must admit that it is very tempting to buy more of some of the stocks that have gone up a lot (now several 100%) since I bought them, but I have so far been able to resist. :D
diabelli
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Re: How do you handle "fun money"?

Post by diabelli »

Bitcoin and some ARKK and ARKF
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Brianmcg321
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Re: How do you handle "fun money"?

Post by Brianmcg321 »

TQQQ.

Try to time the swings. Weeeeeeee
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flyingaway
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Re: How do you handle "fun money"?

Post by flyingaway »

We put aside about 25% of our taking home net money (after maxing all retirement accounts, deducting all taxes and medical insurance expenses) to be used as really fun money to spend at casinos. I intend to have $100K to be invested in Fidelity Zero Total Market Fund for this purpose to cover our fun activities from early retirement to the social security day.

A note to add is that we are already financially independent.
BrooklynInvest
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Re: How do you handle "fun money"?

Post by BrooklynInvest »

I spend less than 1% of my salary on my hobbies.
pasadena
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Re: How do you handle "fun money"?

Post by pasadena »

nisiprius wrote: Thu Nov 12, 2020 3:42 pm I see a problem, rarely discussed, with the whole "fun money" concept. The premise is that you are keeping the amount below the danger level--that if you lose it, it is not going to seriously interfere with your retirement or other financial plans. It is not an amount that is going to make you throw up when you realize that you need to explain it to someone whose finances are linked with yours.

But surely the fun, the thrill, the visceral excitement comes from knowing that you are risking a dangerous amount? Isn't the danger the whole fun?
Everybody has their own notion of fun. For me, it's more about the potential growth and the "fun" of seeing it go up, then the risk, which I don't care about. Obviously the amount isn't going to make me retire tomorrow any more than it would make me throw up if I lost it all. I guess it's about the *activeness* of it.

It also scratches the FOMO itch :)

(I also don't enjoy line zipping, but I do enjoy running in the mountain)
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arcticpineapplecorp.
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Re: How do you handle "fun money"?

Post by arcticpineapplecorp. »

CurlyDave wrote: Thu Nov 12, 2020 2:29 pm First question: do I keep putting 10% of my contributions into the fun money account, or do I only keep the original amount in there?

Then lets say the account does well, really well, and grows to 20% of the total portfolio in a year. Do I stop adding to it, or do I keep putting 10% of contributions in? Or, maybe I take money out to reduce it to 10%?

Or, suppose I lose it all? Can I ever replenish it?

Personally, I am in the let it ride camp. If the fun money grows to more than the recommended percentage, I won't add to it, but I also won't subtract from it.

If it sort of keeps pace with the rest of the portfolio I think I should put more in with each contribution.

If I lose it, I am not very good at this and shouldn't throw any more away.
At least you have a predetermined plan. You can see how well a plan would work if you keep losing your 10% and keep adding more...eventually you lose it all. Still I like to see how fun money starts at 5% then goes to 10%. Why not 15 or 20%?

Finally if you could reach your goal with only 90% of your money couldn't you reach your goal sooner with 100% of your money?
Last edited by arcticpineapplecorp. on Fri Nov 13, 2020 2:16 pm, edited 1 time in total.
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Re: How do you handle "fun money"?

Post by Broken Man 1999 »

With my fun money I have previously purchased a few individual stocks. But, without a severe downturn in equities, buying individual stocks no longer piques my interest. I have decided no more individual stocks. I do rebalance into equities via index equity ETFs.

I have decided to reward myself with a 82" smart TV. Completely out of character, but part of my fun with this purchase is listening to DW try to talk me out of the purchase. After 49 years of marriage later this month, you would think she would know me by now. :oops:

This will allow me to view my favorite programs, the 65" TV is just not acceptable. :D
A DD will gladly take the old TV off my hands, I'm sure.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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yangtui
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Re: How do you handle "fun money"?

Post by yangtui »

I use my fun money to travel, try interesting/exotic food, and athletic activities.
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dogagility
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Re: How do you handle "fun money"?

Post by dogagility »

We spend it... otherwise, it wouldn't be fun money to us.
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RetiredCSProf
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Re: How do you handle "fun money"?

Post by RetiredCSProf »

I don't have the answers, but I have the same questions as the OP. I think it is important to set an upper limit on the percentage that you are comfortable holding in "fun money," especially if you get lucky. Maybe you invest 5-10% but keep upper limit to 10-20%. The range depends on your aversion to risk as well as your investment horizon.

About 20 years ago, I had a friend who kept adding to his fun money, even taking a new mortgage on his paid-off condominium, to continue investing in a "sure" thing, as the price steadily rose. He was shocked and dismayed when his investment suddenly took a steep dive, with no recovery in sight.

I like to spread out my fun money into a few pockets. That way I can ignore the loss in one industry (airlines, defense) while celebrating the gains in another industry (clean energy, clean water). My fun money is in Roth IRAs, which I plan to leave as legacy.
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1789
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Re: How do you handle "fun money"?

Post by 1789 »

Funny money or fun money spent on hobbies and on things making loved ones happy.

Buying them gifts, seeing them happy is the best investment , as as our time is limited on this planet.

For myself a new bike is expected to arrive within two weeks
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FRANK2009
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Re: How do you handle "fun money"?

Post by FRANK2009 »

Working my way up to a 5% stake in ARKK. At that point I hope to leave it alone for many years.
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tennisplyr
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Re: How do you handle "fun money"?

Post by tennisplyr »

I have a couple of percent in a Fidelity tech fund for years...that's fun enough for me.
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Re: How do you handle "fun money"?

Post by flaccidsteele »

Picking stocks isn’t fun for me

I used my fun money for an S550
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
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HMSVictory
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Re: How do you handle "fun money"?

Post by HMSVictory »

I don't do it. You are asking for trouble.

Worst thing that can happen is you actually do very well with it and then.... 5% becomes "look at how great I did" - 50+%. Behavioral mistakes are the largest impediment to building wealth.

I use my financial resources to execute on my goals - not have fun with. Get another hobby - have you tried skiing? :D
Stay the course!
KlangFool
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Re: How do you handle "fun money"?

Post by KlangFool »

OP,

1) I keep 5K to 10K as my "play money".


2) I do not add to this pool.


3) I only take money away from this pool when I have some gain.


4) I only gamble on the stock that may return 10X to 30X.


5) I sell half when it triples.


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mokaThought
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Re: How do you handle "fun money"?

Post by mokaThought »

If it’s fun money, why calculate it as a portion of your portfolio at all? Do you calculate a ski trip based on percentage of your portfolio?

If picking stocks is fun, great, but consider it consumption money.
I gave in and went SCV. Wish me luck.
DIYtrixie
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Re: How do you handle "fun money"?

Post by DIYtrixie »

KlangFool wrote: Sat Nov 14, 2020 8:48 am
5) I sell half when it triples.
When you sell half, do you have a "rule" about what you do with the proceeds? Meaning, does your IPS dictate that you move some of those earnings out of your fun money 'pile' and into an index fund, or is all earmarked to invest in one or more other individual stocks? Or Klangfool's choice?
KlangFool
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Re: How do you handle "fun money"?

Post by KlangFool »

DIYtrixie wrote: Sat Nov 14, 2020 9:43 am
KlangFool wrote: Sat Nov 14, 2020 8:48 am
5) I sell half when it triples.
When you sell half, do you have a "rule" about what you do with the proceeds? Meaning, does your IPS dictate that you move some of those earnings out of your fun money 'pile' and into an index fund, or is all earmarked to invest in one or more other individual stocks? Or Klangfool's choice?

I move money out of the "play money" pool into my main portfolio.


KlangFool
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Re: How do you handle "fun money"?

Post by dknightd »

Fun money is for fun. I like to spend my fun money on fun. I understand that some people have fun playing with money. I like to use my money to have fun. At least till the virus hit. Now I'll use my money to pay off debt (mortgage) and hope one day we can use fun money again one day. Once your basic needs are met, it does not matter what you do with your "fun money."
If you value a bird in the hand, pay off the loan. If you are willing to risk getting two birds (or none) from the market, invest the funds. Retired 9/19. Still working on mortgage payoff.
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Re: How do you handle "fun money"?

Post by Marseille07 »

As others are saying, just keep your accounts separate. My approach has actually been the reverse, where my original taxable is doing super-risky stuff then I opened a new taxable for boglehead-style investing.

I might hit a situation eventually where I have to rebalance these two, but I still have lots of dry powder cash going into the boglehead side so I have nothing to worry until the DP is fully deployed.
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Re: How do you handle "fun money"?

Post by Grt2bOutdoors »

I buy individual stock, it’s a hobby that became profitable - what I sell gets reinvested, I practice tax loss harvesting and I use those losses to offset gains periodically. The amounts invested are small relative to overall net worth, quite a few have performed as good if not better than funds but I’ve had a few losers that have performed worse. Like I said, it’s a hobby and there are hobbies that can get quite expensive even if not dabbling in the securities markets. To each their own.
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CurlyDave
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Re: How do you handle "fun money"?

Post by CurlyDave »

nisiprius wrote: Thu Nov 12, 2020 3:42 pm I see a problem, rarely discussed, with the whole "fun money" concept. The premise is that you are keeping the amount below the danger level--that if you lose it, it is not going to seriously interfere with your retirement or other financial plans. It is not an amount that is going to make you throw up when you realize that you need to explain it to someone whose finances are linked with yours.

But surely the fun, the thrill, the visceral excitement comes from knowing that you are risking a dangerous amount? Isn't the danger the whole fun?

If you risk a safe amount, you do not get the danger, but do you get the "fun?"
...buying index funds, which we all know is about as exciting as watching grass grow...
I did not find this boring:

Image
For me, at least, the danger is not "the whole fun". The fun part is making predictions of the future and keeping score on how they will pan out. The money part is the scorekeeping.

It is easy for me to separate the serious money I need to keep in a relatively safe place, from the speculation money I can play with. Absolute terror of poverty in retirement keeps me from speculating with the "safe" money.

And, BTW, I lived through the time period your graph illustrates. I retired in early 2007, and had no doubts at all that the S&P would recover, the only real question was if it would be before or after I needed to start RMDs. While there was a year or so that wasn't boring, it wasn't fun either. I didn't happen to have any cash laying around collecting dust, so I couldn't buy while there was blood in the streets, but the next best thing was not to sell either.
Carol88888
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Re: How do you handle "fun money"?

Post by Carol88888 »

With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.

More than I can say about losing 10% to a bad stock pick.
Gabelli2020
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Re: How do you handle "fun money"?

Post by Gabelli2020 »

Nothing “fun “ about losing any money. With that being said, I’d go nuts if ALL of my portfolio was VFIAX. Nothing wrong with individual stocks If you buy what you know and love. I bought HD when it opened in my town in Fla. 25 years ago.. I bought Costco when I joined 20 years ago. Apple after my first iPad. JNJ, MRK, PFE,BDX and others when I was working as a physician. All up at least 500%, some much more. Buy and never sell. But my index fund VFIAX is always my secure baby, even if it isn’t my home run.
Also consider rental real estate. With today’s interest rates you may be able to get a single family starter for peanuts. Rent it out, and there’s some “fun” that you won’t squander
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Re: How do you handle "fun money"?

Post by Dottie57 »

placeholder wrote: Thu Nov 12, 2020 3:39 pm Gambling isn't fun for me so I spend it on actual fun like hockey tickets (well someday).
+1
mindboggling
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Re: How do you handle "fun money"?

Post by mindboggling »

What am I doing with my fun money?

I'm buying international :twisted:

Talk about a gamble...yowzer!
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nstar172684
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Re: How do you handle "fun money"?

Post by nstar172684 »

I have a budget line item called “pocket money”. I put cash in a strongbox every month with the budgeted amount and basically its no stress do whatever you want with it. My wife gets a real kick out of it and so do I.
ImUrHuckleberry
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Re: How do you handle "fun money"?

Post by ImUrHuckleberry »

I don't enjoy investing, and I'm finding that I do better with leaving things alone and not getting stressed out if I spend less time researching, reading, tracking the markets etc. So now, other than updating my net worth monthly, (which I'm thinking about changing to annually), and rebalancing 2x per year, I'm trying to cut down on anything else, including even reading this forum. So I don't have any fun money allocation within my portfolio.

I've settled on the following:

10% short treasuries
15% TIPS and I-Bonds
15% domestic bonds
40% US equity
20% international equity

Now that's not going to confuse anybody with being fun or exciting.
am
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Re: How do you handle "fun money"?

Post by am »

95% index funds and cash. 5% hedgefundie adventure, single stocks and cryptos. The 5% has been fun, returned more, and moved the needle significantly in the positive. No regrets.
Bama12
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Re: How do you handle "fun money"?

Post by Bama12 »

I love fun money and think most people should have fun money.

I buy and hold at Vanguard.

I open a brokerage account at Schwab for my play money.
I didn't want to be attempted to play with my buy and hold money. I use the little money I get from my Credit card rewards, (about 100 a month)
to play with I put half in SCHD I use the dividend for more play money. I'm a dividend guy so most of my single stocks are great companies with high dividends. This has been the best investment move I ever made. Never do I think about selling in my Vanguard brokerage, Roth or 401k.
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TomatoTomahto
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Re: How do you handle "fun money"?

Post by TomatoTomahto »

Tbh, I don’t get the “fun money” that’s invested. Fun money, for me, goes (er, went) to travel, home theater, music, meals out, etc.

Just as well, since my wife’s employment doesn’t allow much trading.
I get the FI part but not the RE part of FIRE.
Bama12
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Re: How do you handle "fun money"?

Post by Bama12 »

Broken Man 1999 wrote: Thu Nov 12, 2020 4:37 pm With my fun money I have previously purchased a few individual stocks. But, without a severe downturn in equities, buying individual stocks no longer piques my interest. I have decided no more individual stocks. I do rebalance into equities via index equity ETFs.

I have decided to reward myself with a 82" smart TV. Completely out of character, but part of my fun with this purchase is listening to DW try to talk me out of the purchase. After 49 years of marriage later this month, you would think she would know me by now. :oops:

This will allow me to view my favorite programs, the 65" TV is just not acceptable. :D
A DD will gladly take the old TV off my hands, I'm sure.

Broken Man 1999
Just got a 75 inch :)

Hope you love your 82 inch as much as I do.
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TomatoTomahto
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Re: How do you handle "fun money"?

Post by TomatoTomahto »

Broken Man 1999 wrote: Thu Nov 12, 2020 4:37 pm I have decided to reward myself with a 82" smart TV. Completely out of character, but part of my fun with this purchase is listening to DW try to talk me out of the purchase. After 49 years of marriage later this month, you would think she would know me by now. :oops:
This surprised me, as you and I are nearly always on the same page. If my wife didn’t want me to buy a TV, I would not. I asked her once for a particular TV, and she approved. I have taken that as pre-approval for subsequent TV purchases. Close enough for me, and she likes the picture :D One time she asked me how much it cost, and I told her she didn’t want to know :D
I get the FI part but not the RE part of FIRE.
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Re: How do you handle "fun money"?

Post by aj76er »

My only investing “play money” is in the Hedgefundie 3x leveraged portfolio. I started a few years ago with <2% of liquid NW. After a lot of deliberation, I decided to treat it as a one-time sunk cost and will cash out after a set amount of time or if the balance becomes a life-changing amount (whichever comes first).
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle
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LilyFleur
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Re: How do you handle "fun money"?

Post by LilyFleur »

Bama12 wrote: Sun Nov 15, 2020 2:11 pm
Broken Man 1999 wrote: Thu Nov 12, 2020 4:37 pm With my fun money I have previously purchased a few individual stocks. But, without a severe downturn in equities, buying individual stocks no longer piques my interest. I have decided no more individual stocks. I do rebalance into equities via index equity ETFs.

I have decided to reward myself with a 82" smart TV. Completely out of character, but part of my fun with this purchase is listening to DW try to talk me out of the purchase. After 49 years of marriage later this month, you would think she would know me by now. :oops:

This will allow me to view my favorite programs, the 65" TV is just not acceptable. :D
A DD will gladly take the old TV off my hands, I'm sure.

Broken Man 1999
Just got a 75 inch :)

Hope you love your 82 inch as much as I do.
Hahahaha!
I don't have a wife.
After a romantic breakup and my mom dying, however, my son did encourage me to get the 65-inch TCL. It fits perfectly in my TV alcove, so I won't ever get a bigger one, although perhaps a better one someday.
I've spent fun money on art supplies and abstract painting classes this year instead.
So far I've only finished one painting, so it's good my fun money (almost 1% of my portfolio :mrgreen:) is going up. And it's mildly fun, because when I need a break from painting/studying painting, I can google "apple stock ticker" to amuse myself.
The goal is to sell paintings. This week I've started posting on Instagram. Evidently one must post daily in order to gain a following so as to sell paintings. Who knew?!
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Taylor Larimore
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Re: How do you handle "fun money"?

Post by Taylor Larimore »

CurlyDave wrote: Thu Nov 12, 2020 2:29 pm I have read the advice on fun money and think it is wise to have 5% or 10% of a portfolio devoted to fun money so I can scratch that itch to pick stocks, wheel and deal, and just plain do something more interesting than buying index funds, which we all know is about as exciting as watching grass grow.

BUT, there is a lot of room for interpretation on the nuts and bolts of this.

Lets say I start with a portfolio that is 100% stocks, possibly VOO or SPY just for the sake of argument. Then I decide this is nice, but I can have a little more excitement in my life by investing a little bit of it more aggressively. So I take 10% and buy a few individual stocks, and I establish a second account for this money.

First question: do I keep putting 10% of my contributions into the fun money account, or do I only keep the original amount in there?

Then lets say the account does well, really well, and grows to 20% of the total portfolio in a year. Do I stop adding to it, or do I keep putting 10% of contributions in? Or, maybe I take money out to reduce it to 10%?

Or, suppose I lose it all? Can I ever replenish it?

Personally, I am in the let it ride camp. If the fun money grows to more than the recommended percentage, I won't add to it, but I also won't subtract from it.

If it sort of keeps pace with the rest of the portfolio I think I should put more in with each contribution.

If I lose it, I am not very good at this and shouldn't throw any more away.
CurleyDave:

I don't have "fun money" which usually means "gambling money."

There are better ways to have "fun."

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “I would say, go into the casino, which is what Wall Street is today. Bet on the entire stock market and then get out of the casino and never show yourself there again.”
"Simplicity is the master key to financial success." -- Jack Bogle
TigerNest
Posts: 376
Joined: Mon May 10, 2010 12:58 pm

Re: How do you handle "fun money"?

Post by TigerNest »

When I was in my 20s, I bought and sold a few stocks. I have no interest in doing so now in my mid/late 30s.

Retail investing is gambling, but gambling with better odds than casinos. I've found better hobbies.
cutterinnj
Posts: 371
Joined: Wed Jun 01, 2011 10:08 pm

Re: How do you handle "fun money"?

Post by cutterinnj »

I bought some Netflix a few years ago- got lucky.

I bought a “smidge” of Kodak a few months ago at 40. It’s now around 7. Doh!
It’s fun watching it, though.
Broken Man 1999
Posts: 5830
Joined: Wed Apr 08, 2015 11:31 am
Location: West coast of Florida, inland on high ground!

Re: How do you handle "fun money"?

Post by Broken Man 1999 »

TomatoTomahto wrote: Sun Nov 15, 2020 2:18 pm
Broken Man 1999 wrote: Thu Nov 12, 2020 4:37 pm I have decided to reward myself with a 82" smart TV. Completely out of character, but part of my fun with this purchase is listening to DW try to talk me out of the purchase. After 49 years of marriage later this month, you would think she would know me by now. :oops:
This surprised me, as you and I are nearly always on the same page. If my wife didn’t want me to buy a TV, I would not. I asked her once for a particular TV, and she approved. I have taken that as pre-approval for subsequent TV purchases. Close enough for me, and she likes the picture :D One time she asked me how much it cost, and I told her she didn’t want to know :D
The funny thing is it will be watched far more by her than me!

I have had an excellent run this year, so I am going to. reward myself. The larger TV for me is far less than I spent for her bathroom remodel, and is 100% funded by me!

Sometimes your have to be generous to yourself, especially when one has been very generous to everyone else.

This in one of my very rare situations.

Not sure about the 82inch one, as a couple of other TVs have caught my eye, 85inch and 86inch. Go big, or go home!

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
Marseille07
Posts: 2338
Joined: Fri Nov 06, 2020 1:41 pm

Re: How do you handle "fun money"?

Post by Marseille07 »

mokaThought wrote: Sat Nov 14, 2020 9:24 am If it’s fun money, why calculate it as a portion of your portfolio at all? Do you calculate a ski trip based on percentage of your portfolio?

If picking stocks is fun, great, but consider it consumption money.
It's a tough question. 33x~40x isn't easy to reach as-is, so it's actually quite tempting to include the "fun money" component to it, especially when one's been doing well on that side of trading (me).
lws
Posts: 206
Joined: Tue Apr 25, 2017 6:12 pm

Re: How do you handle "fun money"?

Post by lws »

No fun money here. All money is serious money.
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