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Today, in 10 minutes or less, you'll learn:

• How Above-Average Households Invest

• My Portfolio Approach

• Cash/Risk-Free ($25k)

• Public Stock Index Funds ($45k)

• Real Estate ($20k)

• Business/Fun Money (10%)

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📊 How I’d invest $100k today

Recently, I was asked if I were given $100k today, how would I invest it?

I reflected a bit on this question.

Assuming:

• This is my first $100k of savings

• I’m in the middle on risk tolerance spectrum (not too high, not too low)

• My goal is to save for semi-retirement (not FIRE) in my early 40’s, while enjoying my life now

• No kids or major health expenses

How Above-Average Households Invest

First, I’d look at other households - what benchmarks can I use to guide my decision-making?

Let’s start with average households. The US Federal Reserve provides a rare glimpse into asset allocation by household net worth tier.

Let’s take a look at the $100k tier:

• It’s mainly primary residence

• With a small chunk of retirement assets (eg stocks/bonds)

Now let’s consider above-average households.

Here’s a conventional net worth allocation recommended by Financial Samurai for people who are willing to work until the traditional retirement age of 65+:

• Mainly stocks and bonds

• With a healthy chunk of real estate

These are a couple examples of benchmarks I would consider.

I would dig into the “why” behind these allocations and see if they align to my goals.

My Portfolio Approach

Here’s how I would allocate $100k: