How I’m Investing in 2025: A Balanced Portfolio Breakdown
If you’re wondering how to approach investing in 2025, you’re in the right place. I’m breaking down my personal investment plan , explaining why I allocate my money the way I do across different asset classes. This isn’t just theory — it’s a real, actionable strategy built on nearly two decades of experience in finance and investing.
Whether you’re a newbie looking for guidance or someone who’s been around the block and wants to fine-tune your portfolio, I’ll cover everything from stocks to Bitcoin, real estate to collectibles, and why diversification matters for your peace of mind and long-term gains.
Meta-Strategy: The Investment Pie
What Is an Investment Pie?
Imagine your net worth as a pie. Each slice represents an asset class—stocks, real estate, cash, Bitcoin, and precious metals or collectibles. Each slice has a size, or percentage, representing how much of your total money is invested there. This model helps you see if you’re too heavy in one area or not invested enough in another. It also makes it easier to rebalance when markets shift.
My 2025 Pie Allocation
- Stocks: 33%
- Real Estate: 33%
- Bitcoin: 15%
- Cash: 15%
- Precious Metals & Collectibles: 4%
This allocation reflects my goal to balance growth, safety, and upside potential while keeping enough liquidity to seize opportunities or weather downturns.
Stocks: The Core Growth Engine (33%)
Dollar-Cost Averaging (DCA) — The Backbone
I’m a big fan of dollar-cost averaging. Instead of trying to time the market (which nobody can do perfectly), I invest a fixed amount regularly, regardless of market ups and downs. This smooths out the purchase price over time and reduces stress.
My Stock Portfolio Breakdown
- Vanguard Total Stock Market ETF (VTI): Over 50% of my stock holdings. This fund offers broad exposure to the entire U.S. stock market, from small companies to mega-caps.
- Small Cap and Small Cap Value Stocks: I’ve been buying AVUV (Avantis U.S. Small Cap Value ETF) for years. Small caps have recently outperformed larger stocks and hold more growth potential.
- Mega Cap Concentration Warning: Funds like VTI and the S&P 500 are heavily weighted toward the top tech giants—the so-called “Magnificent 7” (Google, Meta, Tesla, Nvidia, etc.). While these have been market leaders, I prefer diversifying into smaller companies that may have more upside.
- Options for Speculation: I bought a MicroStrategy call option expiring in late 2025 as a high-risk, high-reward bet. It’s a small part of my portfolio but adds some “spice” to the mix.
- Other Core Holdings: I hold shares in companies like CHD and SPY in tax-advantaged accounts.
The Barbell Approach in Stocks
My stock investments follow a barbell strategy:
- Conservative Side: Broad market ETFs like VTI, blue-chip stocks.
- Risky Side: Small cap value and speculative options.
Middle ground is minimal to maximize the safety and upside extremes.
Real Estate: The Inflation Hedge (33%)
Why Real Estate?
Real estate has historically been a great inflation hedge and wealth builder. It’s tangible, can generate passive income, and appreciates over time. I allocate about a third of my net worth to this sector.
My Real Estate Investments
- Primary Residence: My house is paid off, which means no mortgage debt. This was a personal choice prioritizing peace of mind over mathematical optimization.
- REITs: I invest in VNQ, a real estate investment trust ETF, through dollar-cost averaging. REITs have struggled due to high interest rates but still offer diversification.
- Rental Properties: I’m not planning to buy rentals in 2025. I’ve done that in the past, including buying distressed developments and building spec homes. It was profitable but complex and time-consuming.
The Debt Debate
Carrying a mortgage can be a hedge against inflation, as inflation effectively reduces the loan’s real cost over time. However, paying off my house gave me flexibility to take on more risk in other parts of my portfolio without debt pressure.
Cash: Safety and Flexibility (15%)
Where Is My Cash?
I keep 15% of my net worth in cash or equivalents for liquidity and stability. Here’s how I manage it:
- High-Yield Accounts: Robinhood Gold (4.25%), M1 Finance (4%), Capital One (3.8%). Rates have dropped from their peak but still offer decent returns.
- T-Bills: Currently yield about 4.3%, but I’m hesitant to lock money up for fixed terms.
- Municipal Bonds: For those in high tax brackets, municipal bonds are attractive because they pay tax-exempt interest. They can yield 6-7% after tax advantages, making them a compelling alternative to T-bills or CDs.
Why Keep Cash?
Cash is your safety net. It allows you to rebalance your portfolio without selling assets in a downturn and gives you the ability to pounce on opportunities.
Bitcoin: The Asymmetric Bet (15%)
Why Bitcoin?
Bitcoin has been part of my portfolio for years, targeting 15% of my net worth. Right now, I’m actually overweight at 22%, including MicroStrategy and other Bitcoin-related equities.
My Bitcoin Philosophy
- Never Selling: I view Bitcoin as a generational wealth asset — either it becomes worth multiples of what I paid, or it goes to zero. Either way, I’m okay holding through volatility.
- Dollar-Cost Averaging Daily: I buy Bitcoin every day, using platforms like River (not sponsored), which helps me steadily accumulate without worrying about price swings.
- Positive Catalysts: Government acceptance and institutional adoption have shifted Bitcoin’s headwinds into tailwinds, in my opinion.
The Risk-Reward
Bitcoin is volatile but offers huge asymmetric upside. It’s a small but meaningful slice of my pie.
Precious Metals & Collectibles: The Inflation Hedge Plus (4%)
Why Precious Metals?
Gold and other precious metals are classic hedges against inflation and currency debasement. Governments printing money have pushed gold to all-time highs, supporting its role in portfolios.
My Precious Metals Strategy
- Gold Coins: I buy physical gold coins from JM Bullion, a trusted dealer I’ve used for nearly a decade.
- Silver: I sold my silver holdings to fund more Bitcoin — silver has stagnated while Bitcoin soared, making that a smart trade for me.
Collectibles
Beyond metals, collectibles like trading cards (LeBron James rookie cards, Kobe Bryant, etc.), cars, and watches can appreciate over time. For instance, rare internal combustion engine sports cars (think 911 Porsche stick-shift models) will likely increase in value as EVs and self-driving cars take over.
Caution
Collectibles are more speculative and less liquid but can be rewarding hobbies and investments if chosen wisely.
Why Diversify? The Sleep-Well-at-Night Portfolio
The Emotional Side of Investing
Diversification isn’t just about returns — it’s about peace of mind. After witnessing the 2008 crisis’s devastating effects on people who bet everything on one asset, I realized the value of spreading risk.
Avoiding the All-Eggs-in-One-Basket Trap
If you run a successful business or have a unique skill, concentrating wealth there might make sense. But most of us earn salaries and want stable, manageable investments that don’t keep us up at night.
The Barbell Life Philosophy
I live a barbell life: my wife has a stable W2 job providing insurance and steady income, while I run entrepreneurial ventures with more volatile returns. My portfolio mirrors this — a mix of conservative cash and stocks with risky Bitcoin and options.
Final Thoughts and Tips for 2025 Investors
- Rebalance Regularly: Knowing your pie allocation helps you stay on track and adjust when some slices get too big or too small.
- Stay the Course: Dollar-cost averaging and long-term thinking beat trying to time markets.
- Personalize Your Pie: My allocations reflect my risk tolerance, family situation, and beliefs. Yours may differ.
- Learn and Adapt: Markets change, so keep educating yourself and be ready to pivot.
- Don’t Let Ego Rule: Money is a tool, not an identity. Protect your mental health and well-being above all.
This 2025 investment strategy blends tradition with innovation, safety with risk, and logic with intuition. Whether you’re stacking gold coins or buying Bitcoin daily, the goal is the same: build wealth steadily, sleep well at night, and enjoy the journey.
Thanks for reading, and here’s to a prosperous 2025!
