Long-Term (10+ years) Investing Strategy
After you maxed out your 401k, Roth IRA, and SEP-IRA, invest the rest in the following:
- 70% in index funds. They are low-tax since minimal trading is done within them.
- 20% in individual equities that you plan to hold for the long haul like Amazon, Apple, and Facebook. Invest in companies you use and believe in.
- 5% in physical real estate and REITs.
- 5% in non-traditional investments, like domains and art.
These percentages can fluctuate during the year, depending on the value of the individual equities. As you make more money, diversification becomes more important.
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