Originally Posted by -King-:
Regarding your 10% rule. I do agree with you but what if you were early on a stock that blew up. For example, I was earlyish on Tesla and bought a bunch in the 75-200 range pre split. For that reason it's well over 10% of my total account value. Would you say that's the exception to your rule or would you try to diversify away from it and lower the percentage?
Probably already have your answer, I'd add that re-balancing long term holdings once annually (at least) is sound. Also with the FOMO surrounding Tesla breaking out, '21 is unlikely to be anything like 2020 from what I can tell. My TSLA stop loss was triggered the other day, which I had mixed feelings about, but it wasn't for 100% of shares, only sold about 40%. Still sleeping well. [Reply]
Originally Posted by KCUnited:
So after maxing out a 401K, IRA, HSA, and having a 6 month emergency fund, would the minimum goal of investing all other funds be to simply gain more than your mortgage interest rate?
Assuming you're free of all other debts
Yeah. If you’re not outrunning the return on your debt service you need to just service the debt from a pure mathematical perspective. But there is some value in diversification. Over time a diversified portfolio should outrun debt service for sure so you need to be a little patient. But at minimum yeah your return should be higher than your interest rate. [Reply]
Originally Posted by KCUnited:
So after maxing out a 401K, IRA, HSA, and having a 6 month emergency fund, would the minimum goal of investing all other funds be to simply gain more than your mortgage interest rate?
Assuming you're free of all other debts
I recognize there's a benefit of investing if you can outperform your mortgage, but I found a huge intangible value in paying off my house. I ran outside and yelled to the world that I would never be homeless as long as I paid my property taxes that cost more than an apartment in a low-cost city. [Reply]
I had avoided pennies for the most part but after talking more with a couple of friends who dabble with pennies for. Iberia. Ickes I’ve gotten into some. So far they’ve been better plays for me than more name brand oil, casino, airline, steel, energy stocks.
My current swings are ASTI, KWBT, hcmc, and aitx.
Now....looking back, I had good entry points on gevo and a couple of others I bailed on for$1 profits and left 10 on the table. Live and learn. I’d like to learn how to read charts better.
I appreciate the thoughtful advice on here. A lot to learn. [Reply]