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Need advice on long term portfolio allocation for an 18 year old

Hi! Im 18 years old this year and with a long term investment horizon, I would like some advice on how to optimize my portfolio

I currently own:

  • 4 Tesla stocks (which are down but ofc im holding)
  • some CSPX
  • about 10k in cash
  • about 1-2k income per month from side business

Allocation im considering (without considering Tesla stocks):

40% VWRA (for its EM/global component)
30% CSPX (for US mkt)
30% QQQM

I'm open to suggestions!

Discussion (14)

What are your thoughts?

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At your age, many will recommend funds but I never like funds because mostly I find that in the early stages, your money goes to financing their expenses. Their returns are almost always capped due to their expenses in the future. Don't take my word (or other's word) for it - do your math. And see if you can agree. My recommendation at this age is that you can go into any high dividend yield REITs or safer Blue Chips like DBS/UOB/OCBC. Why? These are almost always recession proof. If you re-invest the dividends + your income/savings, you will almost always beat the funds safely. Put a little into gambling - as in Cryptocurreny, but only into 2 choices - BTC and/or ETH - all the others are know as Shit Coins for a good reason. No more than 10% to 15%. These provide a little added boost if and when they do go to the moon (which no one can ever predict - don't believe the analyst and definitely not Elon MusK). Tesla is a good stock for now but not forever. You got to know when to hold them and when to fold them. Analysts like Cathie Woods write BS and fiction to suit themselves so I won't follow them BLINDLY. Sometimes its good to follow the wave but you got to know when to exit because they have the advantage on exiting. So in the end, what's the advice? DO YOUR DUE DILLIGENCE and BE SENSIBLE. Don't ever follow the "STAR" analysts or Elon Musks - they can and will ruin you. They just want you to push the stock prices up/down to suit their own selfish needs because these people are nothing but bad folks, seriously.

Robin

28 Dec 2021

Administrator at SG

I suggest VGT from vanguard. It is Apple, Microsoft and Nvidia heavy. Check it out.

comment

Allocation seems good ETF wise. However as you are young and can afford to take on more risk, I would suggest allocating some funds to cryptocurrencies, maybe 5-10%, however much you are comfortable with.

If really long term, I would go for high risk high return investments given your age and the amount. When you look back at 40-50 years old, this would be little money which doesnt really make a difference for you. 10k is probably cost of a piece of furniture in 25 years. If you take a conservative approach (3-5% a year), this would still be little money after 25 years and doesn't make a difference for you. So I would rather do something that might make a difference or nothing.

Endowus is a great way for diversified investments over the long term!...

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