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Originally Posted by toasterwater  Okay, this is what i want to try and accomplish with my stock market ventures. I want to use the "pyramid" method of investment. The pryamid method is symply having most of my money in a more conservative investments, and having less money in more risky investments. |
Toasterwater,
Most of my money is in the funds below. I put money in based on a percentage of the total amount invested and rebalance the money in Jan of each year. Rebalance means that I buy or sell to get the levels back to the target percentage.
I didn't start with enough money to fund each category, so I started working from the top down (I worked on putting my total pot of money in the 20, 15, and 10's until I had enough money to purchase the fund at its minimum investment level). It took me several years to fund all of them this way, but it worked.
US Large Caps - 20% - Funds (VTSMX, MDY, QQQ, SPY)*
Foreign Large Caps - 15% - Fund (VGTSX)
US Small Caps - 10% - Fund (NAESX)
Foreign Small Caps - 10% Fund (RISIX)
US Large Value - 20% - Fund (VIVAX)
US Small Value - 10% - Fund (VISVX)
Foreign Large Value - 10% - Fund (VTRIX)
Emerging Markets - 5% - Fund (USEMX)
MDY and QQQ are not really Large Cap Funds...but I don't want to sell them and this is the closest category that I have in the list.
These funds are NOT the best ones out there...these just happen to be the ones I picked. If you look them up on the internet you can find other funds in the same category.
Now for my risky investments, I subscribe to a newsletter called "Rule Breakers" from the Motley Fool. Each month they recommend 2 new stocks to consider and also have a list of five rulebreakers stocks for "new money now", so if you had money to invest you would have 7 stocks to pick from every money. These investments are VERY risky, they will either tank or make a bundle. I bought equal ammounts of 7 stocks one month and so far 4 are up and 3 are down...that's the way it goes.
I am a LONG term investor...I'm not interested in working on investments everyday. I read the newsletter every month, but I don't put money in every month. I wait until my wife gives me money to invest
