My Investment Strategy for 2025: A Simple and Effective Approach

No gatekeeping here. Here’s exactly how I invest my money in 2025 as a former financial advisor and portfolio manager. I'm Tyler, and I now create financial content for free to help you make informed investment decisions.

1. S&P 500 Index Funds and ETFs

I have 70% of my net worth split between one S&P 500 index fund and one S&P 500 exchange-traded fund (ETF). Yes, there is some overlap, but ETFs are slightly more liquid in the super short term.

2. Investment in Growth Fund

Next, I allocate 10% of my net worth to a growth fund that tracks the NASDAQ. At 41 years old with about a 20-year time horizon until I think I’ll need that money, I can afford to take on some additional risk, so I do.

3. Emerging Markets Fund

I have 5% of my money in an emerging markets fund just in case China and India decide to actually emerge.

4. Small Cap Fund

Another 5% of my money is in a small-cap fund. Remember, companies like Amazon, Nvidia, and Microsoft were once just small caps, and now they're grown-up caps. It would have been great to be on that ride from the beginning.

5. Money Market Fund for Liquidity

Finally, I keep 10% of my money in a money market fund for liquidity, which is currently returning a very healthy yield for a risk-free asset class.

6. Simple Management

So, that’s six funds with no nonsense, minimal fees, and tax efficiency. It takes me about 10 minutes a year to rebalance if I wanted to, but for the last five years, I haven’t felt the need.

If you find this helpful, please like and follow, and I’ll keep trying to get you one step closer to where you need to be.

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