My Financial Plan

I want to publish my financial plan so I can look back and reflect. Did the plan make sense? Did I stick to it? What worked and what didn’t? Maybe it will help my readers too.

My objective is simple – To build my wealth efficiently. I’m not saving for anything in particular. My lifestyle is nimble. I don’t appreciate real estate like some and I move around a lot so renting is my modus operandi. 

I begin with meticulous budgeting. Knowing where my money goes and how much I can save each month is crucial. 

I save and invest religiously. 40% of my after tax income goes into my Roth 401k, backdoor Roth IRA and brokerage accounts. I invest each paycheck immediately. 

I earn rewards on everything I buy. Every few months I get a new credit card with an attractive intro offer. 12-18 months with 0% APR, $100-$350 cash, and 2-5x points in a category that’s deficient in my arsenal of credit cards. 

I arbitrage bank interest and rewards. Instead of paying the 0% into offer cards off in full each cycle, I make a minimum payment (or slightly more) and let the balances build up. I take that money and earn ~2% in my SoFi checking and Simple Bank savings accounts. When one intro offer is about to expire, I pay the card in full from the savings account and apply for a card that offers even better rewards. 

I use leverage (sometimes). By not maintaining an adequate savings account balance to pay off all the 0% (intro) credit card balances at all times, I’m effectively borrowing at 0%.  

I do not sell. That’s a lie; I try hard to seldom sell investments. It puts me in the proper mindset when I’m researching a potential investment. Sell planning and discipline is crucial. 

I diversify. Across asset classes, geographies, industries and factors. I maintain positions in Berkshire Hathaway, Emerging Markets, BASF, Alphabet and Bitcoin. Generally, ~90% of my investible capital is in global stocks. About 10% goes to bonds and alternative assets i.e. cryptocurrencies and gold. 

I tax loss harvest and tax locate my investmentsIn addition to tax loss harvesting, tax location is placing all my large dividend paying investments in my Roth IRA, alongside my moonshots. I’m able to reinvest those non-taxed dividends back into high risk/reward bets. 

By optimizing for taxes and saving religiously, I hope to build my wealth faster than most. Money is as good as the enjoyment it provides and I want to continue to live an enjoyable life.

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