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I think it's wise for everybody to allocate some funds for high-risk crazy investment in smaller companies, just 5-10%, as long as it's not a straightout scam t
by vladimirralev 11y ago
I think it's wise for everybody to allocate some funds for high-risk crazy investment in smaller companies, just 5-10%, as long as it's not a straightout scam that is. First, you learn a lot from your research and interactions. Second it is diversification. Third, you can put the money towards something you care about so even if you lose them it's not a big deal such as VR, cancer cure, some cool boat technology, new food, whatever.
- chronic41 11y agoI'd rather take the 7-8% over risky investments.
- cpfohl 11y agoVanguard's VTSAX is an ETF that buys the whole Stock market (more or less, at least a representative portion). By definition that includes smaller high risk companies.
- dlubarov 11y agoSlight correction: VTSAX is a mutual fund; VTI is the corresponding ETF. I agree that it's an excellent choice though -- easy diversification, very low expenses, low turnover. VT (which includes foreign stocks) is also worth considering for extra diversification.
- cpfohl 11y agoGreat point. I group VTI, VTSAX, and VTSMX all together in my head; with Vanguard the differences between Vanguard branded ETFs and MFs aren't really that noticeable if you're just buying and holding. Thanks for clarifying my suggestion, though!