What Does My Portfolio Look Like | How I’m Achieving FIRE

How do I plan to become wealthy, free from depending on a paycheck, and support my family without needing an income? Here is a peek inside of my portfolio as a newly married 20 something year old. I got here by making less than 40k annually. Some of my investments were luck, and some were very calculated. My entire investment career has been in a relatively stable bull market, I will say that I am fortunate to have started investing during this time. There have been scary times where I think brand new investors or emotional investors would have sold, the end of 2018 as well as during the beginning of the COVID pandemic were both times that tested my conviction. It’s always good to learn about investing while you’re making money, not when you’re losing money in a bear market. It’s easier to continue to invest when your money appreciates.

The primary reason my portfolio is as large as it is today is because during March of 2020 during the pandemic, because I was employed by the military and at no risk of losing my job, I decided to invest about 80% of my emergency fund and invest almost every dollar that I made for about 6 months, I even sold my motorcycle to invest a few extra thousand dollars. Much of the money I invested during that time has doubled or tripled if not more. I would say that is lucky, but I don’t think it was, I was just practicing what I preach which is to buy when the market is selling off. It was extremely scary but because I was single and because I am young, I took the risk of going “broke” and restarting my portfolio if needed.

Photo by Jessica Lynn Lewis on Pexels.com

I want to preface that I do not necessarily “practice what I preach” but there is good reason for that. The advice I give is for the average person who does not what to spend hours every week thinking about and researching investments. On average I spend between 10-20 hours reading, researching, and monitoring my investments. To me this is a very enjoyable process and is something I plan to do for the rest of my life. Learning about new asset classes, new ways to invest and different opportunities that arise is one of my hobbies.

The tips I share are primarily for people who want consistent investments that they can do over the next few decades to hopefully retire much younger than the average person. There are many other ways to make money and as always I am not giving advice, I am just stating my opinion on what the easiest and safest ways are to make solid returns on your investment and what I personally choose to do. Always do your own research!

Currently I have achieved Coast Fire, this means that I pretty much don’t have to save any more money for retirement. The money I have saved and invested can sustain my retirement if I decided to retire in my late 50’s or early 60’s. So, at this point I have a few options. I can spend all the money that I make and just live off of that until the normal age of retirement. The other option is to continue what I am currently doing and keep adding to my investments and retire even earlier. My plan is to do the second, I will continue to save until I can retire and hopefully that will be before the age of 40. I might even be able to do my early 30’s if I’m a bit lucky.

Above is the basic allocation of my investments.

Let’s start with the smallest portion which is alternative investing. Many people would include crypto in this category, but I do not. I think of crypto as its own asset class and I believe it is the most important asset class anybody can have, specifically Bitcoin. In this category I have a fine wine portfolio where I use Vinovest to purchase and store the wine for me, I pay them a fee for this service.

I love alternative investing. Wine, gold, whisky, collectors’ items (stamps, baseball cards, etc.), art, and some would say crypto. This category is in my opinion where you get to invest for enjoyment. I find wine fascinating, there is so much information to learn, and if done correctly you can drink some of the wine for nearly free. I would think that everyone should have some form of alternative investing. It is usually a physical asset, like art, wine, cards, and gold. When you have a physical asset, you can enjoy it. I can drink my wine one day, you can look at your art and cards, you can spend hours looking on eBay and go to auctions. Almost everyone can find an alternative asset they can enjoy as well as make some money from or build their collection to give to their families or charity. For me this is currently wine, and I presume my portfolio will slowly become more and more consumed with wine allocation.

Photo by Bernyce Hollingworth on Pexels.com

The next smallest category is cash. This is not just dollars sitting in a savings account. Some of the money is for daily use in our checking accounts. We have another portion in our emergency fund, earning a low yield in a savings account, sadly. The largest portion of this money is our long-term savings which is in a stable coin earning 8.05% through Gemini Earn. About 2/3rds of our cash is in Gemini Earn which is a comfortable place for us to keep it. This allocation nearly guarantees us 8% with, in my opinion, very low risk. Gemini is heavily regulated, and they are incredibly transparent with their business models and show they have the cash to back up their stable coin. The money we keep in this account is for travel over 1 year away, about half of our emergency fund, home down payment/renovations, and money we are happy with receiving 8% on as an investment. This is our space for low risk investing, similar to how some people buy bonds, we use stable coins. Welcome to the 21st century, it’s amazing. 

 I’m not sure if everyone should put their extra cash in stable coins, I think emergency funds should be kept in a bank account which is fully liquid (50% for us). Somewhere like Ally, or Citi bank will provide you with some of the best interest rates (as of Nov 2021). We are personally willing to take higher risk for nearly 16x higher return. Our reasoning is because we want to at least keep up with inflation, and with the current CPI (governments way of tracking inflation) being 5%+ or more it just doesn’t make sense for us to keep all our cash in a bank.

Photo by Carlos Pernalete Tua on Pexels.com

Stocks accounts for 29% of our portfolio. Before this year stocks would be closer to the 50% mark, however I’m not going to sell my winners to buy more losers. We continue to invest in stocks and crypto, and we do not plan to re-balance our portfolio. Around half of our stock portfolio is retirement accounts, mainly a Roth IRA. The other half is invested in a brokerage account. That brokerage account has about 30% ETFs, and 70% individual stocks. When I choose individual stocks, I chose markets that I am most comfortable with. These primarily include tech stocks, PENN is the only stock we own that is not a tech stock, because I find Barstool a compelling media company that is growing rapidly. The ETFs vary widely, they include ARKK, URA, INDA, KSA, SCHD, and VTI. I like to diversify my equities, but I don’t like to have so many stocks and ETF’s that it’s hard to keep track of. Recently I have been moving more toward dividend stocks, my Tesla stock has performed very well, but because they do not give a dividend I can only profit from this increase in value if I sell the stock. With dividend stocks, we could eventually be able to live off our dividends and never need to sell a stock for profits. If all I had was Tesla stock and I wanted to retire one day, I would have to sell shares of the company to pay my bills. That is something I want to avoid for the most part when it comes to investing. We also re-invest our dividends currently, which means the money the company pays us to be shareholders is now used to buy more shares of the company, allowing us to then make more dividends the next payout without investing any new money.

Photo by Lorenzo on Pexels.com

The last section is the magical crypto. For the past 11 months I have done hundreds of hours of research on crypto, almost all that time has been Bitcoin. I’m obsessed with Bitcoin; it seems to me that it will be the future of the world and the currency everybody will desire to own. In my opinion based on what I have learned, Bitcoin is the future of money/currency, and other cryptos are tech startups that may or may not change how the world interacts with banking services. Many cryptos have potential which is why I invest in a few of them; however, Bitcoin is my #1 choice by far. Bitcoin to me is not a speculation, the other cryptos are 100% speculation.

With that said here is how my crypto portfolio breaks down. About 33% of it is in Ethereum. This started out as about 15% but it has grown very quickly which has been quite nice. There are plans in the works to convert about half of this to Bitcoin. Taxes are always a good reason to not sell any asset but at some point, at a certain price I plan to move my Eth over to BTC.

Photo by Alesia Kozik on Pexels.com

My crypto consists of 60% Bitcoin, which has also grown a healthy profit. The last 7% is mostly ADA, but there is a little bit of Polkadot, SOL and MANA. I invested 75 dollars in MANA just as a “why not” investment. It is currently around $900 in value. I would never advise someone to make investments without doing research, but that is what I did with MANA. I had a little extra cash in my account and decided to gamble it on MANA, it has paid off, but I still don’t think it’s a great investment currently, one day it may be the future of gaming or the metaverse.

Overall, our future plan is to invest around 50% into our Roth IRA and another stocks/ETF’s. We will allocate 25% to wine investing, and 25% to crypto. There is a good chance that we will dip into the 50% of stocks to invest more heavily into Bitcoin. We may also dip into that 50% to put more money into stable coin investing if we decide we want to save up more cash for real estate purchases. Eventually we will also be moving into real estate to increase our diversification.

Below are links to the different resources I use for investing.

Ways to invest and support!!!!!

BlockFi – bitcoin rewards credit card and exchange – Up to $30 free Bitcoin

https://blockfi.com/?ref=9e0604cb

Vinovest – Invest in fine wine for as little as $1000 –

https://vinovest.co/signup?grsf=q16yhw

Robinhood – Invest in the stock market – Free stock

https://join.robinhood.com/jefferc60

Gemini – Invest in stablecoins and crypto – Up to $60 in BTC ($10 for $100 deposit. $60 for $600 deposit)

https://gemini.com/share/5m6y8r2v

🔎Disclaimer🔎 All content in this blog is for entertainment purposes only. I am not a professional financial advisor and my statements are not to be taken as instructions or directions. In no event will I be liable for any losses or damages arising from the use of content from any of my platforms, including, but not limited to YouTube, Blog, or any other social media. I reserve the right to change my opinions and entertainment content at any time. Please be sure to do your own due diligence!

Published by Christal

I’m here to share the knowledge and tips I have so you can see how I make passive income, save for an early retirement, and enjoy life outside the cubicle.

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