My Real Beginner Stock Portfolio in 2020

About this video

Sean walks through his beginner stock portfolio and his long-term investing approach. He says he has about $30,000 invested in total, with a near-term goal of $100,000 and a FIRE goal of $900,000, which he calculates would allow $36,000 a year at a 4% withdrawal rate while the portfolio grows at a historical average he puts at 7-8% a year for index funds. He says he spread money across too many platforms while learning and recommends keeping it in one place, with M1 Finance as his favorite. He lists Acorns, where he says he has about $5,644 in an automated, diversified portfolio, but does not recommend it now because of its $1 monthly fee and lack of stock choice; Vanguard, where his Roth IRA is invested entirely in VTSAX, a total US market index fund; E*Trade, where his solo Roth 401(k) holds VTI and VOO; Robinhood, where about $1,000 is play money in individual travel stocks he says he was willing to lose; and M1 Finance, where most money follows a three-fund approach of VTI for US stocks, VXUS for international stocks, and VNQ, a real estate index fund, in place of bonds because he wants more growth and risk while young, plus a small allocation to individual companies he uses. His recommended order is to take an employer 401(k) match first, then max a Roth IRA, which he states has a $6,000 yearly limit, then return to the 401(k), using a solo 401(k) if self-employed, then a taxable brokerage. He advises buying and holding diversified index funds and dollar-cost averaging on a regular schedule rather than trying to time a dip or crash.

Key takeaways

• Sean’s stated strategy is buy-and-hold diversified index funds, mainly a three-fund portfolio covering US, international, and a third asset class
• Keep investing simple and in one main platform where possible; Sean names M1 Finance as his preferred platform for a Roth IRA and taxable account
• Investing order he recommends: capture the full employer 401(k) match, then max a Roth IRA, then contribute more to the 401(k), then use a taxable brokerage
• Use dollar-cost averaging on a fixed weekly or monthly schedule instead of waiting to time a market dip or crash
• Treat individual stock picks as a small, high-risk allocation only with money you are willing to lose; the core portfolio is index funds

Episode details: published July 13, 2020 · 26:34 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Sean Dollwet’s own claims, shared for education — they are not typical or guaranteed.

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