Tue Nov 26 2024, by Tyler Gardner

Introduction

Here is exactly how I would invest $100,000 like a professional. I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it.

Step 1: Keep It Simple

Number one, I would keep it simple and invest in five funds: Total US stock market, total international stock market, a blue chip dividend fund, an intermediate government or corporate bond fund, and a real estate investment trust index.

Step 2: Asset Allocation Based on Age

Number two, knowing that 90% of my ultimate return will come from exactly how I invest across these asset classes, I would start by subtracting my age, 41, from 120. I would invest 79% of my assets across the domestic and international stock funds and the remaining 21% across the blue chip dividend fund, the real estate investment trust index, and the intermediate bond fund, but only if it were in a retirement account or I needed cash flow.

Step 3: Importance of Location and Strategy

So all three of these will generate annual taxable income. Number three, and even though there is never a one size fits all, this allocation strategy would have doubled your money during the lost decade, 2000 to 2010, one of the worst decades in US stock market history. And I was invested in 100% stocks, earning the big fat zero.

Conclusion

And that, my friends, is why you never take money advice from random ding-dongs walking through the woods, talking about money. But if any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

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