How I'm Investing for 2025

hey everybody welcome back to whiteboard Finance in today's video I want to show you how I'll be Investing For 2025 so I'm going to give you a big breakdown here I usually don't have stuff on this side of the Whiteboard but it's going to be there the whole video and I'll give you more information on this side as we go uh but basically uh it's the end of the year holidays are starting so I want to give you guys a perspective of how I'm looking at things and how I'll be investing my money in 2025

and moving forward stay tuned okay so let me start this video by breaking down the things that I'll be investing invting in by asset class and then we'll break down each asset class as we go so if this is a pi I've given this analogy 8 million times uh throughout the seven eight years that I've been on YouTube um basically you want your pi to be representative of your net worth think of it like a pizza think of it like an actual pie each slice is an asset class and each asset class you give a

percentage or a weight in your portfolio so say for easy numbers your net worth is $100,000 you want a certain percentage allocated to each asset that way you know if you're overweight or underweight and you can rebalance much easier that way so with this let's start with stocks so I want stocks to be basically a third of my net worth so we're shooting for 33% and again I'll break that down as we go throughout the video next is Real Estate another third 33% it's been a great inflation hedge over uh basically the last 100 years

or so and then we have Bitcoin at 15% cash at 15% and then we have precious metals and Collectibles at 4% so now that you understand the big bird's eye view of how I'm investing by asset class let's break these down Okay so let's break down the stocks portion of my investment plan for 2025 so if you guys know me first and foremost I'm typically a dollar cost average investor um so if you don't know what dollar cost averaging is it's basically just investing a certain amount of money at a certain interval uh for an

extended period of time so as we both know the market goes up and down uh and you want to end up somewhere in the middle if you dollar cost average hoping that the chart goes up and to the right as it has done in the past so what I'm doing right now is to break down my biggest position I'm not going to share every single thing that I invest in uh but just so you know vti which is vanguard's total stock market in uh fund is basically 53% of every single one of my portfolios okay

so out of everything that I hold vti makes up more than half of it uh the thing that I do want to highlight though is small cap uh and midcap but specifically small cap value uh so I've been buying AV UV for a number of years now uh and it's done very well for me um so the reason for that is because if you look at this chart right here you can see that small cap has actually outperformed a midcap and also the S&P 500 uh you can take a look at that because for nearly

two years uh Market leadership has typically been dominated by the Magnificent 7 if you look at any fund like a vti or the S&P 500 or any of these big funds that buy mega cap companies um they're all dominated by the biggest market cap because they're weighted towards market cap so market cap is simply just the stock price times the shares outstanding and that gives you the market cap or the entire value of the company so uh if you look at any of these funds like bti for example they're just loaded by the Magnificent 7

these are your uh Googles metas Teslas things like that Nvidia for example so what I want to do is I want to load up a little bit more on small cap and small cap value just because they simply have much more upside to run in my humble opinion uh and then also what I'm doing is and if you guys don't know my investment philosophy it's typically more like a barbell philosophy so on one end of the barbell you have super conservative Investments that's why we have cash right here uh and then really nothing in the

middle and then Super risky stuff on the other side which is why we have Bitcoin uh and then the next thing I'm going to talk about right now so I actually bought a couple weeks ago a micro strategy December 19th 2025 call option uh I paid $19,100 for that one contract if you don't know what options contracts are they allow you to control 100 shares of the underlying asset uh so my strike price is 400 and my break even is 591 a share uh and we have about 365 days to get there okay um so

that's kind of my more risky Equity position and then I still have your usual suspects I still hold a bunch of sea HD it's one of the biggest Holdings in my portfolio I have a little bit of spy in my Roth and things like that so with all that being said that's pretty much how I'm going to continue investing into 2025 it's going to be dollar cost averaging into my core holding such as vti avv SCD with a little bit more spiciness on the craps table of micro strategy so that's either going to age like

a fine monigan wine or it's going to age like milk and you guys know me I've always been transparent with you so I'll let you know okay so number number two is real estate so this is supposed to be 33% of my Pi if you can see right here 33% uh realistically it's about 31% at the time of this recording so I'm basically right on track that's the beauty of weighing your asset classes you know exactly where you stand and you can rebalance at any time uh with real estate it's a little bit harder because

my house is paid off so I do have a lot of equity in my home uh other than property taxes and bills and maintenance which never go away don't you just love home ownership uh so even with the paid off house you're just renting from your municipality in the form of property taxes that will never go away stop paying your property taxes and see who really owns your house uh but on a side note my house is paid off the reason I did that is because I went into psycho dad mode I have two kids

I don't want any debt um mathematically it was dumb uh financially in peace of mind it's fine because it allows me to be more risky in these other areas of my pie right uh when you're taking on a mortgage or low fixed rate debt you are effectively making a hedge against the US dollar okay you're saying hey I'm going to borrow as much money on year zero as possible and pay it off over time when inflation is uh paying off my debt for me right um so you can do the calculator I have a home

affordability spreadsheet if you're interested uh you'll see how much you can pay an interest over the lifetime of the loan but if you're keeping up with inflation which Real Estate has historically done uh you should be good that's the reason why I paid off my house for me it's just a glorified savings account and it's a place that I live and raise a family it's not an investment so if you want to do Investments you have REITs and you have rentals right so I still buy uh vnq I dollar cost average into it uh it's

it's done very poorly just because the interest rate environment that we're in has been absolutely insane it's super high so when rates are high it's typically not good for Real Estate developers or commercial real estate in general um so keep that in mind that's an option if you want to track um an ET F of Reit okay uh rentals so I'm personally I don't see myself buying a rental in 2025 I already went down that rabbit hole many years ago uh we bought a defunct development back from PNC uh for just over a million dollars

when I worked in commercial real estate uh the Builder basically went Belly Up in 0708 had hundreds of Unfinished lots and we basically started building spec homes we were selling single family homes we were building duplexes to rent out we did all that stuff okay we got rid of all those in about 2016 2017 uh obviously too early but still made money it is what it is so for me personally um I don't see a rental property being on the cards so I'm not going to be doing that for 2025 but again uh my net

worth between my home equity and all the other real estate um proxies that I own um I'm pretty much happy with where I sit at 31% of my net worth okay so moving on to number three Cash Cash cash is 15% of my net worth at the time of this recording it's about 133% uh so right on track there as well so where is my cash going right now so in Robin Hood gold I'm earning 4.25% I have sumon M1 Finance earning 4% and then also Capital One who I've been with for years 3.8% obviously

the rate Cuts have affected that uh this used to be at like five this was five and this was like 4 and a half or four and some change so T bills right now are currently yielding 4 .3% I don't see myself buying t- bills the reason for that is because you're locking your money up for a period of time yes you can trade t- bills um but that kind of defeats the purpose of them uh so even after tax and stuff like that you're not really earning 4.3% after tax on these you're not really

earning these rates either that's why I wanted to talk about municipal bonds so if you're in the highest tax bracket uh municipal bonds are similar they have similar rates as t- bills and some of the other Solutions out there like CDs and bomb and things like that but they typically pay interest income that is exempt from federal taxes so they may also be exempt from like state income taxes if purchased from the home state so if you're in a high tax bracket um just the tax savings alone is going to juice these Municipal Bond rates

up to like 6 or 7% at the time of this recording you have to realize you're paying taxes you're paying $199 interest on all these right here um so you're not really yielding that rate so when you look at inflation and you look at municipal bonds for the people that are in the higher tax bracket watching this video that could be an option for you um I was at the barber shop the other day uh sitting next to an old uh commercial real estate investor that I know um he's just casually pulling up his Fidelity

account and it had a couple commas in there okay and there's some numbers before the first comma right indicating you know Deca millionaire uh so we got to talking he said you know most of my stuff is just in real estate municipal bonds uh so that's something you may want to look into if you're in a higher tax bracket okay so number four is everybody's favorite uh Bitcoin so Bitcoin right now uh it's the target has always been 15% of my net worth for years uh but right now I'm actually overweight at 22% of my

net worth if you count the micro strategy that I hold and some other uh Bitcoin proxies or Bitcoin related uh equities uh it's actually higher than 22% so uh I'm just dollar cost averaging I'm never selling Okay the reason I'm never selling because to me this is something that is how do I explain this uh it's either generational wealth or significantly less than what I own it for right there's no in between it's just a huge asymmetric bet and I don't need the Fiat right now I don't need the Fiat US dollars at this point

so I'm just holding on to it it's up about 125% year to date if you've been paying attention uh if you haven't watched my many YouTube videos you may want to check out the last one I did uh in my $100,000 uh Bitcoin Journey um those have all the books you need to know um to read about Bitcoin if you still don't understand it yet so the reason why I'm not selling is basically because there's too many positive Catalyst right now uh when it comes to government and things like that so essentially in a nutshell

for the sake of this video all the headwinds have become Tailwinds in my opinion so I personally use uh River this is not a sponsored video If you want to get some Bitcoin from River check out the link below I dollar cost average literally every day I buy Bitcoin literally every day and I smash buy it on the disc I had limit orders down to $10,000 uh when Bitcoin was trading at 16k okay it's close to $100,000 right now so um it's just one of those things that you have to study if you don't get

it you think I'm an idiot if you get it it's the smartest thing on this list okay so number five is precious metals and collectibles so precious metals and collectibles I shoot for about 4% of my net worth uh right now if I had to guess it's probably somewhere around maybe 1 and a half to 2% um I would like to start inre inreasing my gold stack um so this is not all of my gold um just cuz I don't want to bring it down here um but these are gold ounces uh gold ounce coins

that I bought from JM Bullion if you guys are looking for a place to buy precious metals um which I'm going to talk about more here check out JM Bullion I've been buying from them for years uh you can see all these receipts I've been buying from them for 8 nine 10 years now at least um so basically when you look at precious metals it's a good hedge against inflation uh gold is actually trading at all time highs right now as we speak uh and the reason for that is because of monetary debasement uh the

governments are printing fiat currency like crazy why do you think Bitcoin is exploding why do you think precious metals are exploding why do you think I even have this as part of my net worth um so check out JM Bullion if you haven't uh they're beautiful and you can pass them down to your kids or grandkids one day uh also if you check out other types of Collectibles you have trading cards right you got LeBron James rookie LeBron James rookie Kobe Bryant rookie jannis anent Koo rookie LCA donic rookie uh should have bought a nikolic

rookie but that's a conversation for a different video best center of all time A lot of people are not going to like that but it is what it is uh so some people buy trading cards some people buy Pokemon cards some people buy precious metals cars uh watches some watches increase with value over time uh cars do increase of value over time I know a lot of listeners probably don't want to hear that but if it's not your daily driver and it's an internal combustion engine 911 stick shift Porsche it's going to go up in

value trust me especially with self-driving electrical vehicles government mandates people are going to pay out the nose 20 30 40 years from now for a stick shift internal combustion engine sports car trust me um sold all my silver here's a tweet from 2020 saying me ready to unload my physical silver July of 2020 and here's July of 2024 uh selling 100 ounces of silver at $31 an ounce put it straight back into Bitcoin uh silver stagnating Bitcoin went through the moon right great trade so with all this being said uh I appreciate you guys watching

I want to give you my thoughts stay tuned right now okay so let's get into my thoughts so some people say diversification is diversification uh some people are saying why wouldn't I just keep investing in XYZ that has done very well for me over the years and I actually agreed to that uh to an extent so if you're a business owner or if you're someone who runs a special y say you're a the world's best woodworker the world's best metal worker the world's best auto mechanic the world's best restaurant tour right or commercial real estate

investor it doesn't matter yes you probably should have all your eggs in one basket okay I'll be honest there because the ROI that you're going to get from running a profitable business is probably going to beat any of this right here what I'm trying to help you do is if you are someone who's just you know earning uh US dollars in a job or earning a wage or a salary worker someone who just wants to invest soundly and not have to worry about side hustles uh driving for Uber doing all these million things that you

don't want to do uh this is probably a good way to go right so for me uh diversification actually leads to this uh sleep well at night so Swan I sleep well at night knowing that if any of these assets went to zero I'm not going to go jump off a building right I saw so many people after 0708 that literally drank themselves to death jumped off their own buildings killed themselves you see it happen all the time people blow up their portfolios uh their real estate goes belly up and that was their whole life

and their whole identity was tied to that one thing okay is it really worth it no so I'm not trying to be morbid or weird but it's true some people are so obsessed with money and uh what money brings them and the Allure and you know the prestige and their ego and all that stuff that they end up killing themselves over what some digital pixels on a screen right it's not worth it so with me I sleep well at night if Bitcoin goes to zero great there goes uh 22% of my net worth I don't

care stocks go to zero great doesn't matter real estate zero great doesn't matter I don't care I'm not that invested in any one of these things where if someone comes and steals uh this gold no big deal okay whatever life's uh too precious to tie yourself to a monetary amount um and then barbell so the reason I want to bring up barbell is because some people think oh you're crazy this is way too much of your net worth in Bitcoin uh oh you're crazy this is way too much of your net worth in cash this

isn't risky enough this is too risky this is whatever it doesn't matter so for me I I think that the irony is is that Bitcoin is going to move from the risky side of the barbell and the volatile side of the barbell to actually one of the safer things in the future um that may or may not happen you may think I'm crazy but I don't think I am uh so the barbell for me is kind of how I live my life so my wife has a W2 job uh she does well for herself but

she also has time to raise our kids and she also provides the health insurance and does all that stuff so she's the stability uh I'm an entrepreneur I run a couple businesses my income is like this it's all over the place however um we're hitting singles doubles triples in the park home runs grand slams and then hers is singles and doubles like this right so we have a foundation and a base so that's why I barbell invest that's why I have a sleep well at night portfolio and that's why I diversify and uh if my

lifestyle or outlook on life is similar to yours maybe you should uh give this allocation a try but again this is not Financial advice I'm just a random guy on YouTube Don't listen to me I haven't been studying money in geopolitics for 19 years I have no idea what Bitcoin is I'm just talking out of my rear end thank you so much for watching and have a prosperous day all right so all joking aside I don't think these LeBron rookie cards are going to do well I hope I'm wrong uh just just because the NBA

is in the crapper right now if you look at the ratings and viewership it is absolutely decimated over the last couple years uh that's cuz the league is boring all these kids are just shooting threes there's no mid-range game I grew up in the best ERA of basketball give me Iverson Kobe Tracy McGrady Vince Carter sha give me all of them in their Prime baby the new NBA is so boring [Music] he