What is my entire net worth for determining % of portfolio?

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bettycooper123
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What is my entire net worth for determining % of portfolio?

Post by bettycooper123 »

Hello there,

I have $60,000 in cash to invest and I am trying to decide how much to put in my Vanguard 3-fund portfolio vs invest in cryptocurrency. I have seen on the internet that it's recommended to invest 1 - 5% of your portfolio in crypto.

How do I determine what my entire portfolio net worth is to determine what that 1 - 5% is? Do I look at:

(a) individual stock investments (Wealth MGMT account + company RSU) + mutual funds + retirement accounts + real estate + cash (= $830K)
or
(b) individual stock investments (Wealth MGMT account + company RSU) + mutual funds + retirement accounts (= $697K)
or
(c) simply individual stocks (Wealth MGMT account + company RSU) (= $240K total across 16 individual stocks and some gold)

I also have $110K in equity in an apartment I own so not sure how that fits in to the portfolio % breakdown either.

Thank you for your guidance!
Last edited by bettycooper123 on Tue Dec 07, 2021 5:57 am, edited 1 time in total.
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Sandtrap
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Re: What is my entire net worth for determining % of portfolio?

Post by Sandtrap »

Consider investing in crypto and other alternatives the amount of money (regardless of portfolio size) that you are willing to lose.
(Similar to the bets in Vegas ?)

Actionably
Your “investment portfolio” is not your total assets (incl home and r/e.
It is the total money that you have invested in market funds plus cash or cash like that is liquid and is readily accessible.

Have you reviewed your fees and costs at “William Blair”?
j🌺
Last edited by Sandtrap on Sat Nov 27, 2021 9:26 am, edited 2 times in total.
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TomatoTomahto
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Re: What is my entire net worth for determining % of portfolio?

Post by TomatoTomahto »

My guidance: to paraphrase your mother, if the Internet told you to jump off a bridge, would you?

This forum does not accept crypto posts.
I get the FI part but not the RE part of FIRE.
sycamore
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Re: What is my entire net worth for determining % of portfolio?

Post by sycamore »

bettycooper123 wrote: Sat Nov 27, 2021 9:16 am ... I have seen on the internet that it's recommended to ...
That's enough right there to suggest you should take a breather and reconsider what you're doing :)

Please consider reading about and writing your own Investment policy statement.
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vanbogle59
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Re: What is my entire net worth for determining % of portfolio?

Post by vanbogle59 »

bettycooper123 wrote: Sat Nov 27, 2021 9:16 am my entire portfolio net worth
I don't think that is even a thing.
Your investment portfolio is your investment portfolio.
Your net worth is something else entirely.

For example:
Johnny has $0 invested, but has $1M net worth.
Johnny takes out a $100K loan and receives $100K cash.
He still has $1M net worth (because the cash and debt offset each other).
He takes the cash and puts it all in a target date fund at Vanguard.
Only now does he have an investment portfolio, and it is $100K.
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retiredjg
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Re: What is my entire net worth for determining % of portfolio?

Post by retiredjg »

If you are going to invest anything at all in something like crypto (and I'm not suggesting you should) it would be option b.

If you can afford to lose a little money, then having a "fun money" investment is OK....as long as it is a very small portion of your portfolio and as long as you actually can afford to lose the money. This is essentially gambling.
dbr
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Re: What is my entire net worth for determining % of portfolio?

Post by dbr »

It might be valid to speak of the "net" value (not worth) of a portfolio if it holds assets worth less than zero.

Maybe someone who considers a mortgage or other debt to be a negative bond would to that.
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JoeRetire
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Re: What is my entire net worth for determining % of portfolio?

Post by JoeRetire »

bettycooper123 wrote: Sat Nov 27, 2021 9:16 am I have $60,000 in cash to invest and I am trying to decide how much to put in my Vanguard 3-fund portfolio vs invest in cryptocurrency. I have seen on the internet that it's recommended to invest 1 - 5% of your portfolio in crypto.

(b) individual stock investments (William Blair account + company RSU) + mutual funds + retirement accounts (= $697K)
Apparently, the internet is recommending that you invest between $6,970 and $34,850 in crypto.

Be aware that the internet has been known to be wrong on occasion.
This isn't just my wallet. It's an organizer, a memory and an old friend.
invest4
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Re: What is my entire net worth for determining % of portfolio?

Post by invest4 »

sycamore wrote: Sat Nov 27, 2021 9:21 am
bettycooper123 wrote: Sat Nov 27, 2021 9:16 am ... I have seen on the internet that it's recommended to ...
That's enough right there to suggest you should take a breather and reconsider what you're doing :)
+1...with feeling!
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LadyGeek
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Re: What is my entire net worth for determining % of portfolio?

Post by LadyGeek »

bettycooper123 wrote: Sat Nov 27, 2021 9:16 am I have $60,000 in cash to invest and I am trying to decide how much to put in my Vanguard 3-fund portfolio vs invest in cryptocurrency.
As a reminder, cryptocurrency as an investment is off-topic. See: Greater Fool Investing Strategies
Eventually, one runs out of greater fools. - Burton Malkiel

Discussions of investment strategies based on securities or physical assets that have no underlying value or negative expected long term returns are prohibited. Examples include: cryptocurrencies; lottery tickets; tulip bulbs; Ponzi, pyramid, and multi-level marketing schemes; affinity frauds; and market manipulation schemes.
And this post by the site owner: New Forum Policy Prohibiting Discussions of Cryptocurrency, Market Manipulation Schemes, etc as Investing Strategies
Note - This policy is limited to discussions of investing strategies. Discussions of cryptocurrencies in other contexts is still acceptable, for example for money transfers or microtransactions or the current thread on crypto trades and tax loss harvesting.

10/19/21 Edit: What about BITO, the new futures ETF?

This still falls under our prohibition. Our ban on crypto discussions is ultimately based on cryptocurrencies' lack of intrinsic value. While the ETF structure greatly reduces non-market risks, purchasing it is still a purely speculative gamble, not an investment.
Members may have crypto in their portfolio. The discussion may proceed as long as the strategy for managing crypto aligns with "Investing Advice Inspired by Jack Bogle". For example, selling crypto to purchase stocks or bonds.

In this case, your only choice is to use that cash to invest in your 3-fund portfolio.
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Mike83
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Re: What is my entire net worth for determining % of portfolio?

Post by Mike83 »

For purposes of asset allocation, but not really a net worth statement:

(b) individual stock investments (William Blair account + company RSU) + mutual funds + retirement accounts (= $697K)
PLUS
Cash deposits
PLUS
Gold (if salable form like ETF or Fund; coins or bars)
PLUS
Real Estate (if not your residence)

Then decide AA
Stocks / Bond / RE / Cash / Gold

A Net Worth statement is different, including all assets and subtracting all loan balances.
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