Originally Posted by lewdog:
It about entering a trade with no more than 10% of your account, not about how much that stocks gains and results in it being more than 10% of your account value.
So after maxing out a 401K, IRA, HSA, and having a 6 month emergency fund, would the minimum goal of investing all other funds be to simply gain more than your mortgage interest rate?
Originally Posted by -King-:
Regarding your 10% rule. I do agree with you but what if you were early on a stock that blew up. For example, I was earlyish on Tesla and bought a bunch in the 75-200 range pre split. For that reason it's well over 10% of my total account value. Would you say that's the exception to your rule or would you try to diversify away from it and lower the percentage?
Probably already have your answer, I'd add that re-balancing long term holdings once annually (at least) is sound. Also with the FOMO surrounding Tesla breaking out, '21 is unlikely to be anything like 2020 from what I can tell. My TSLA stop loss was triggered the other day, which I had mixed feelings about, but it wasn't for 100% of shares, only sold about 40%. Still sleeping well. [Reply]
Originally Posted by KCUnited:
So after maxing out a 401K, IRA, HSA, and having a 6 month emergency fund, would the minimum goal of investing all other funds be to simply gain more than your mortgage interest rate?
Assuming you're free of all other debts
Yeah. If you’re not outrunning the return on your debt service you need to just service the debt from a pure mathematical perspective. But there is some value in diversification. Over time a diversified portfolio should outrun debt service for sure so you need to be a little patient. But at minimum yeah your return should be higher than your interest rate. [Reply]
