Investment Strategy
I recently decided to rebalance my portfolio and plan for goals into the future. Here is vision.
Stocks
I recently set up some new stock portfolios to start investing into to help plan into the future, my M1 pie, and a Schwab account with individual stocks. I unfortunately dont have any retirement funds as you cannot contribute to them if you live abroad, but we get big tax breaks already to make up for it. (see FEIE)
M1 Portfolio
30% - Growth
VONG 35%, VOO 35%, Nasdaq 100 30%
This slice is to focus on future growth, I suspect this will get slaughtered if we have a downturn, but im kind of expecting that so I can dollar cost average in. Long term this should do very well, historically speaking
30% - Dividends
SCHD, 55%, JEPI 45%
Im a big fan of income investing, if we do actually hit a recession. It currently has a 6.432% dividend yield and has a covered all strategy to help the portfolio continue growing during a downturn. This will create dividends to reinvest into the other slices.
30% - VTI
Not much to say about this, VTI is the gold standard in investing, it will help diversify my holdings across the whole market
5% AVGE
This fund has a more exposure to the global markets and is a slightly different strategy then the rest of the funds I have. I am holding this to further diversify my holdings
5% VXUS
This is an international fund to help offset losses if the US equity markets do not continue to do as well. It also has a more minimal exposure to China, which I do not feel will do well in the long run
Schwab Individual Stocks
Another portfolio I am investing in, is individual stocks with exposure to the AI markets. These are stocks I picked that I feel will benefit greatly from the AI revolution we are experiencing. I am using the stock slice feature of schwab to invest in most of these automatically each week similar to M1. I like to keep individual stock picks in this portfolio as more of a risky play. My m1 account allows margin loans etc, which I dont want to abuse on risky assets into the future if I get foolish.
All of these stocks are pretty self explanatory, they are tech stocks in the AI market. The only two I think that need explaining are LHX and TRMB. These have more exposure to the space industry that I am interested in and look like solid companies.
Savings:
I also started saving for some land purchases in Mexico I want to purchase in the next 5 years. I do feel the markets are in for a downturn so I dont think there is a rush on this, these are listed in order from most urgent to least urgent.
Puerto Escondido
Beach front 150k, or inland 50k
I have been looking at land here in the Rinconada area, which still has plenty of land available and is an up and coming area in the region. It has a few beautiful beaches nearby, and is overall a great community. Escondido is about to get a highway finalized this year from Mexico City, which will bring it massive growth. I think this is the most urgent purchase due to this, and I am considering owner financing to do a monthly payment over the next 4 years. You can do this for as little as 7000 pesos a month, however, you put yourself at risk if you dont own it outright. Oaxaca has some insane land lawys for squatters etc so im unsure how to approach this. Im leaning towards not having beachfront land as its much more expensive, and hurricanes are getting more serious in this region in recent years. Also the city is farther away from the beach. but the views!
San Miguel de Allende
Rural - 30k, Nice - 100k
This is my current home city and I truly love it here. San miguel is growing fast, almost too fast for the water situation here. I want to purchase land in antoniclo, which is a rural barrio that growing. A bonus is a lot of the land here has access to hot springs, if I could get one of those that would be awesome. I dream of owning land here and building a japanese styled onsen one day.
Xilitla
Rural - 10k, Farm River access - 100k
This is my doomsday land I want to build out. This area is rich of arable soil, lots of water, and abundant river resources. I want to build a little homestead here to relax when the world is going crazy. This is debatably one of the most beautiful parts of Mexico I have been to, and is super underdeveloped. I want to buy some farm land here that has access to the river in the huasteca region. Alternatively I could get a land downtown in Xilitla and watch the city growth the next 20 years.
Salt Lake City
Cottonwood Heights - 1M
Downpayment - 200k
This is the only purchase I am considering where I might get a mortgage one and buy a nice house in the cottonwood heigts region of salt lake. This is right along the mountain range and has access to a lot of climbing and skiing. My wife wants to be a utah girl and we need to have a residents in the US due to my insurance license, and her green card so I am going to start saving for a down payment for this.
Life Insurance
Lastly, I am going to purchase some larger term life insurance policies this year. My companies will pay for this to purchase equity from my spouse in case I pass away early.
Term - 1 million - 30 year - This will serve to buy out my spouse of my equity.
Term - 500k - 15 year - On my father, in case he passes I want some cushion to help take care of my mother and brother that has a mental disorder that prevents him from working.
Our company only generates around 500k per year for now, so this should cover the equity cost, as we grow the company will take out more policies.