I mentioned in a previous post about how it is important to invest to further your own wealth. I had mentioned I planned to write about how I personally invest my own money. I will state that this is just what I personally do to invest and what I believe is an effective method. Don’t take this as professional advice, invest at your own risk, and do your own research.

Now I will say that your strategy should depend on your life stage, for me I am in college and do not want to have my money unaccusable. One of the best forms of investment is through a Roth IRA. If you are working a career job and have already maxed out your match contributions into your 401K, the next step would be to max out a Roth IRA, which as of now is capped at a maximum of $6000 per year.

For those that are not in a career level job, are in college, or need to have access to your funds I would do what I do. I invest around 80% of my portfolio into a couple well established S&P 500 ETFs, the other 20% I invest into different options strategies. Most of my options are leaps and a very small percent are different spread strategies. The nice thing about my method is that if need too, since I am still in college, I can pull out some funds if I have an expense that exceeds my emergency fund. The options strategies also provide a small inflow of cash that I can reinvest or if need be, use for expenses.

As soon as I am done my grad program and I am in my career job I will do what I have mentioned above for my retirement accounts. I also will hire a financial advisor to handle my long term investments and I will solely focus on my options strategies which will still only be about 20% of my non retirement portfolio. My whole outlook is making sure the vast majority of my money is safe but still grows faster than the average inflation rate. That being said I still want to have some money in riskier investment strategies that will bring the potential of large returns, but also wont hurt much if I play my cards wrong.

If you want to follow a similar strategy to me I would highly recommend doing your own research and find a couple stocks that you really understand and follow to use for your options. I only play options on one stock currently, but follow three other stocks to involve into my strategies soon once I get a better understanding of how they usually move.

Image: https://tradearcadepro.com/wp-content/uploads/2019/09/investmentplancompass.jpg