Sometimes I get the itch.
Sometimes I get it really quite bad.
The itch to tinker with my investments, to follow through with that hot stock tip or try out a new investment all together.
I want to try these things, but then I don’t want to put the long term returns of our index fun portfolio in jeopardy by switching in and out all the time.
So what should we as investors do to stop this itch?
After thinking it over the past few weeks, I’ve come to two conclusions;
- Simply keep it in the 100% S&P500 tracker it’s in currently.
- Keep 90-95% of it in the S&P500 tracker and tinker with the other 5-10%
Now I don’t know about you. But for someone who loves to constantly trial new theories and run experiments with my finances and health, option two really appeals. Even the founder of Vanguard, John Bogle recommends putting 5% of your funds into fun money stated above.
So now that we have identified that we have investment urges and we want to put 5-10% of of funds into fun money investments, how do we go about it? This is where it really comes down to you. Do you personally get immense enjoyment out of picking stocks? Do you love Peer to Peer Lending? Do you want to put it in bonds to even out the volatility? Or do you like me, love infrastructure and property and want to put it into Listed Property Trusts (REIT’s)?
So that’s exactly what I’ve done.
I’ve invested 10% of my personal investments into property index funds. When I commute to work I get a real sense of satisfaction knowing that I’m now owning a portion of industrial warehouses, office blocks and shopping malls. I’ve always loved architecture, construction and buildings and being able to invest into them and own a small fraction of wonderful buildings paying me rent each month is fantastic.
It cures my itch and fills my pocket.
I really am investing for the fun of it.