Birthday Investing is investing simplified for those wanting to customize their portfolios according to their tastes and needs. Here is my portfolio
The method is simple:
- Save and Invest
- Start your Birthday Portfolio based on your age and risk tolerance (lower number of stocks = riskier):
- 25 or younger: Pick 1-10 stocks
- 25 or older: 1 to 10 + your age – 25
- These stocks must be thoroughly vetted with the intention of holding forever. Allocate based on confidence levels in each security
- Every year, add 1 stock to the portfolio (could be your birthday, could be the start of the year, doesn’t matter)
- Every time you add money into your portfolio, rebalance your portfolio as you go based on current price or outlook
- Re-evaluate your selections every 5-10 years (optional)