Three things everyone should have in their portfolio

THE STACK #27

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Building a profitable investment portfolio is more than just buying an S&P500 ETF.

You need a better strategy if you want your investments to replace your income someday.

In today’s STACK, we will look at the three main things everyone needs in their portfolio.

THE STACK

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 1. Something for Stability 

These are low-risk, well-diversified investments that will help minimize your potential losses and preserve your capital.

You may not see high returns on these types of investments, but at least you know your capital (money you invested) will still be intact.

2. Something for Income

These are investments that pay a fixed income regularly.

The income received from these investments can be reinvested to increase your returns. 

When you get closer to your withdrawal stage, a well-designed income portfolio could replace half your income without selling your investments.

They are also a good cushion during market downturns.

3. Something to increase Profits

These investments have a high growth capacity and can supercharge your returns. 

They are usually high-risk and high-reward and shouldn’t exceed 15% of your overall investment portfolio.

THE TOOL

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Build a profitable foundation, growth and income portfolio

Learn how to build a profitable investment portfolio that funds your goals in the STACK MY DIME BLUEPRINT.

THE ACCOUNTABILITY

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This week, research two ETFs that fall under each of these categories:

🔎Broad-based

🔎High yield

🔎Growth

THE COURAGE

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This is your reminder that the presence of spending money is not the absence of saving, investing, & paying off debt.

You don’t have to feel guilty about spending money on things that make you happy.

Have confidence in your ability to prioritize your financial responsibilities.

— Dasha | Financial Activist (@brokeblackgirl_) December 21, 2022

THE KNOWLEDGE

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EQUITY-BASED ASSETS 

An equity asset is a type of asset in which its investors get part ownership of the company. 

Equity assets are usually traded on a stock exchange.

Equity assets include Stocks and funds that consist of stocks.

FIXED INCOME ASSETS

Fixed-income assets are typically debt-based investments where the investor gives a loan to a government, municipality or corporation to get back a fixed interest. 

Examples: Bonds, GICs/CDs.

That's it for this week's STACK!

Talk to you next week,

But until then...Keep Stacking!

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