Portfolio breakup

Jan 1, 2018 15 Comments

This is the investment breakup I am keeping for my cash.

20% crypto
40% robinhood
30% wealthfront
10% savings account

Any suggestions on improving the risk/reward balance?

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TOP 15 Comments
  • Snapchat / Eng
    SomeEng

    Go to company page Snapchat Eng

    PRE
    PepsiCo
    BIO
    I'm Dic.
    SomeEng
    That's an insane amount of your total portfolio in crypto in my opinion. Generally you want 10% or less to be for speculation.

    Also, what's the breakdown between Wealthfront and Robinhood? Why not just say what breakdown in type of holdings? It's hard to say if it's a good call when 70% of it is a mystery.
    Jan 1, 2018 0
  • Pretty bad. What's inside robin hood and wealthfront? the fact that you mention them instead of the underlying asset allocation leads me to believe you need to do a lot of reading before investing in anything. 20% in crypto is beyond stupid.
    Jan 1, 2018 0
  • Amazon
    5dy5z8

    Go to company page Amazon

    5dy5z8
    Lower crypto and Robinhood percentages. Increase Wealthfront percentage. This is not tricky...
    Jan 1, 2018 0
  • Tableau / Eng
    Johnny27

    Go to company page Tableau Eng

    Johnny27
    IMHO: I would keep crypto < 10%. Rest in Wealthfront with a risk level appropriate for your situation (age, goals, risks willing to take, etc).

    You don't need cash in a savings account beyond what you need for your normal cash flow. Buy CDs for your emergency fund.

    And your emergency fund should not be a percentage of your portfolio. Should be based on 6 or more months of expenses.
    Jan 1, 2018 2
    • IMO 6+ months is way too much. 3-6 is fine. You can get liquidity from Wealthfront portfolio line of credit with 3-4% interest rate, or credit cards, without having to have a giant drag on your portfolio in the form of cash.

      Of course it depends on your total savings. If you just started working and only have 3 months of salary saved IMO saving into 401k, etc. takes priority over a giant emergency fund.

      https://earlyretirementnow.com/2016/09/07/debunking-emergency-funds-part1/
      Jan 1, 2018
    • Tableau / Eng
      Johnny27

      Go to company page Tableau Eng

      Johnny27
      For my emergency funds, I'm kind of compromising a bit. I have something like 5 or 6 months in CDs and another 5 or 6 months in a low risk Betterment portfolio (30% stocks / 70% bonds)

      So far that low risks portfolio has been going up enough to keep up with my increased expenses. If it goes below my target (say market was down) I just replenish it to my target.
      Jan 1, 2018
  • Old farts like me believe in higher liquid balance. I personally advocate at least 1 year. Those of us who were in the 2002 crash will never be the same.
    Jan 1, 2018 1
    • Tableau / Eng
      Johnny27

      Go to company page Tableau Eng

      Johnny27
      Kind of agree. If you're a doctor or have another very secure job, then a full year might be overkill. But tech jobs could become much less secure pretty quick if we end up in a big recession.
      Jan 1, 2018