Rich Habits Podcast

Q&A: Side Hustle for Students, Too Many Stocks, & a $330K Inheritance

14 snips
Feb 20, 2025
The hosts dive into tackling listener questions about personal finance and investment strategies. They discuss the challenges of owning too many stocks and suggest focusing on a streamlined portfolio. The importance of diversifying investments, including real estate and educational savings accounts, is emphasized. Critiques on life insurance compared to index funds highlight simpler financial strategies. Lastly, they explore smart financial practices, including the importance of paying off debt before investing and leveraging skills in web design for income.
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ADVICE

Optimal Stock Portfolio Size

  • Limit your stock portfolio to 10-20 stocks, especially when starting.
  • This allows you to focus on your winners and manage them effectively.
ADVICE

Single Stock Selection Strategy

  • Only own single stocks if you believe they'll outperform the S&P 500.
  • Dollar-cost average into individual companies until they reach your target weighting (e.g., 1-3%).
ADVICE

Managing Losing Stocks

  • Don't hold onto losing stocks indefinitely, hoping for a rebound.
  • Sell losers, tax-harvest the losses, and reinvest elsewhere for better returns.
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