How I Invest My Money

I’ve been investing actively for more than 10 years… and studying about it along the way.

I’m not a financial advisor — simply a passionate amateur — so please do much other research and get certain about your strategy before you invest.

Over time, I’ve really settled into the “Boglehead” way, which is:

(1) As soon as possible (do not delay even one year) — invest your money into a tax-advantaged retirement account (such as an IRA) at least yearly…

(2) …choosing low-cost broad-based index funds. My current allocation of my investments are: 70% into VTI, 25% into VXUS, 5% BCD.

(3) And most importantly: do not ever sell those shares, for at least 20 years (or until retirement), no matter what the “imminent market conditions” are.

What I’ve noticed is that there will always, always, always be financial news that causes you to question your investments. “URGENT! Divest from this, invest in that” — every year, every quarter, it’s the same. It’s how those people (who sell urgency) stay in business, or get eyeballs to their content, or sell you their financial memberships.

If I can recommend to you the one resource that you lean on completely for the “newest” financial news and perspectives on investing, it’s this one…

Go there. Ask all your questions about investing. Ask about your latest concerns or investing opportunities. You’ll get sensible replies. In all manners of market conditions, that forum can be your grounding tool.

And it’s free. I bet (not literally, of course) that if you follow only their advice, you’ll be better off financially after 20 years.

For example in that forum I found this:

On investing, so much is about compounding interest + years… A good rule of thumb is (assuming you retire in your 60’s) is…

> Every dollar you save in your 20’s = $16

> Every dollar you save in your 30’s = $8

> Every dollar you save in your 40’s = $4

> Every dollar you save in your 50’s = $2

The above assumes a 7% return (historical stock market returns minus inflation), so $1 invested at age 20, becomes $16 at age 60.

If you prefer to watch YouTube videos, I’ve gathered my favorite ones on the topic:

Besides investing in broad-based index funds, it’s also key to invest in your own marketable skills. However, I’m biased (because I sell courses on those skills!) but if interested, you can see my reasoning here:

My latest big financial move? It’s a physical one — I moved to a low cost country that has high-interest savings rates. Here in Mexico, we consistently get almost double the interest rate on bank CD’s (guaranteed certificates of deposit) than the USA. Currently, Mexican bank CD’s are about 10% compared to the US’s 5%. Therefore, with the lower cost of living and higher interest rates, it’s easier to live off the interest instead of eating away at one’s principal (savings). Even considering the currency fluctuations, it’s a better deal.

Feel free to pass around my advice here. Simply copy/paste the above and share it anywhere, without my name. The exception — if you’re sharing with a fellow soulpreneur, then you can share this link:

I don’t want random consumers coming to my website asking me for financial guidance! 😅

Use what I share here (especially the links I give you above) as one of multiple sources of information that you consult, then make decisions in full responsibility for your own financial future. Take courage — but not too much — and one step at a time…