How does your money allocation match up?

I’ve been trying to figure what would be the ‘optimal’ allocation across
types of investments should be. There’s a lot of theories out there, but
frankly, it’s hard to figure out which one to follow.

I’ve been trying to figure what would be the ‘optimal’ allocation across types of investments should be. There’s a lot of theories out there, but frankly, it’s hard to figure out which one to follow. (Would love any suggestions/thoughts from you all here 😊)

Investopedia categorizes allocations by conservative, aggressive, moderately aggressive, etc. Warren Buffett has one suggestion around 90% in low-cost stock index funds and 10% in government fixed-income (ex. treasuries). Some say 60% stocks vs 40% fixed-income.

But I found a lot of these don’t really give a full picture. For instance, how much should be in cash? How much should be in allocated to buying an apartment/home? And what about if you invest in crypto?

I definitely won’t solve this question today. (This is what financial advisors spend many years and fees trying to figure out…) But, I thought I’d take inventory of how I’m doing relative to some of these strategies.

So it seems like I am over allocated in cash (currently at 18% versus trying to get to 5-10%), and under-allocated in fixed-income securities as well as equities. But over-investing in equities at the moment doesn’t feel right either? Also, since I have exposure to crypto, which is one of the most risky investment types, I don’t know if adding more equity investments would be helpful?

Will keep noodling on this, but curious how you come up with your allocations by investment type.

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Disclaimer: All opinions are my own. The content on this site and on the podcast does not constitute financial, legal, accounting, tax, or investment advice.

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