Re:How to get rich without getting lucky
by nostrademons on Friday June 01, 2018 @02:39PM
(#17208602)
Rule of thumb:
6 months of living expenses in liquid cash (savings accounts, rotating CD ladder, money-market funds, etc.).
Any money that you'll need in the next 5 years in low-risk, non-volatile investments (eg. bonds, T-bills). This usually applies to retirees, but also to folks like entrepreneurs or commission salespeople that have unsteady incomes.
Only invest in real-estate, individual stocks, crypto, precious metals, foreign currencies, collectibles, etc. if you know what you're doing. If it's not your full-time job (eg. a venture capitalist or real estate developer), no more than 10% of your net worth in these investments.
6 months of living expenses in liquid cash (savings accounts, rotating CD ladder, money-market funds, etc.).
Any money that you'll need in the next 5 years in low-risk, non-volatile investments (eg. bonds, T-bills). This usually applies to retirees, but also to folks like entrepreneurs or commission salespeople that have unsteady incomes.
Only invest in real-estate, individual stocks, crypto, precious metals, foreign currencies, collectibles, etc. if you know what you're doing. If it's not your full-time job (eg. a venture capitalist or real estate developer), no more than 10% of your net worth in these investments.
Put the rest into broad-based stock index funds.