Clients often ask me for advice on how to invest xxx$ amount, and for the time being I would recommend this model portfolio:
- 20% crypto assets
- 20% gold/silver
- 20% property
- 20% stocks
- 20% bonds
Utilise low cost index ETFs bought via a reputable low cost Internet broker to maintain liquidity and minimise fees and transaction costs. Further resources on that here.
A well diversified crypto-portfolio could look like this:
- 30% bitcoin
- 25% ethereum
- 10% litecoin
- 10% ripple
- 10% zcash
- 10% monero
- 5% siacoin
Or take for example the top 5 or 10 of the largest and most reputable crypto-currencies here.
To eliminate hacking risk, use only reputable crypto-exchanges for storing your crypto assets combined with offline security devices, USB or offline paper wallet devices such as ledger nano s, Trezor, or make your own hardware wallet.
You might also have heard of the Ray Dalio’s All Weather portfolio, with the relevant statistics for the 30 year period from 1984-2013, courtesy of Tony Robbins:
- 9.7% annual returns
- You would have made money 86% of the time (so only four down years)
- Average loss of just 1.9%
- Worst loss was -3.9%
- Volatility was 7.6%
Here’s the asset allocation that Dalio came up with for this strategy:
- 30% Stocks
- 40% Long-Term Bonds
- 15% Intermediate-Term Bonds
- 7.5% Gold
- 7.5% Commodities
Note though that Ray Dalio’s All Weather portfolio is very debt heavy, and the bond market’s bullrun of the reported period is now over.
We are also entering potentially a very volatile period with global asset write-downs and devaluations, hence the more defensive model portfolio should be considered.
Along with the above recommended asset allocation, proper implementation, periodic monitoring and rebalancing of your porfolio is of utmost importance.
Now some advice on prudent monthly cashflow management. Depending on your monthly income, you can organise your accounts in the following categories:
- 30% NEC – necessities such as rent/mortgage, food and bills
- 30% FFA – financial freedom account
- 30% LTS – long term savings for specific goal
- 5% EDU – education or learning new skills
- 2.5% PLAY – having fun and enjoying life
- 2.5% GIFT – gifts to charities or other worthy causes.
There you go, -full information revealed to manage your investment portfolio as well as your monthly cashflow DIY !
If this all seems a bit overwhelming to you, please get in touch, and your friendly Cruelty Free Wealth facilitator will be happy to help out.