What to invest in and how do I allocate money properly into those channels?
This is the million dollar question.
Before we get deep into this topic, I have a secret to tell you. I’m going to say something that no one will ever come out and tell you.
Are you ready?
You need to have at least two portfolios. Three if you have kids.
There I said it!
Wherever you look you will hear financial advisors and pros telling you that you need one well diversified portfolio. I won’t argue about the diversification, but I will stand my ground that you need at least two.
You’re probably thinking, where am I gonna get the cash for two, and three if I have kids? The thing is you don’t need a lot of dough to start them. You just need to start.
Why Creating a Portfolio is Crucial to Your Investing Future
Has The Trader Chick Gone Crazy? Why Two or More Portfolios?
Here’s the situation, Ladies. When you start investing you will start with a regular portfolio where your assets are liquid. Or in other words, you can move your money around any way you like to. And even better you can take out the cash when necessary.
What about a retirement fund? This is a portfolio too, you know. You can have the exact same strategy as you use for your regular portfolio, but you can’t take out the money until you are in your 60’s or you will be penalized. (Unless you have a Roth IRA).
So that is why it is crucial for you to have at least two.
Wait, did The Trader Chick say to have three portfolios if you have kids? I did!
The third one will have a pretty name to it – college fund. Or, if you don’t want to push your kids to university and let them decide what they want to do when they reach 18, you can call it an education fund. Whatever cool name you give it, it is still a portfolio.
Now the fun begins – starting the portfolios.
Marina 'The Trader Chick' Villatoro