Build your own Investment Portfolio
Now is the time to take the actual steps to start

At this point, you would have completed your temple design (and all of the background information included in the Starter Kit and Investment Temple sections) and are now ready to construct.  You would have determined how much you want to invest on a regular interval, what type of investor you are, and how you are going to allocate your investment. 

As with constructing a real building or temple, what you will discover is that all of the preparatory work takes longer than the actual construction.  Building an investment portfolio is no different...

...IF you have truly completed all of the Temple workshops and completely understand SMART investing.  If you are not yet there, I encourage you to return to prior sections.  Don’t worry, this section will patiently wait until you are ready to begin constructing.

For reference, I copy below the suggested investor matrix with asset allocation suggestions included.

The Fire & Forget Investor

As you will only be dealing with DRIPs and 1 diversifying ETF, your portfolio construction activity is relatively straight-forward.

Steps to Take

  1. Pay yourself first:  set up your investment vehicle bank account, as outlined in Finding the $. 
  2. Then, set up an automatic monthly/quarterly/annual bank account transfer from your regular checking account into this newly created investment vehicle bank account.
  3. Decide if you are to purchase shares via a shareholders services company like Computershare or Shareowneronline – which is the preferred approach recommended by NITK - or a (discount) brokerage firm.  There are brokerage firms like that do offer good value.  You can buy stocks, ETFs (even the hated mutual funds) for $4 per trade if you invest in their automatic program.  Moreover, if you invest in more than one security per transaction, you can even get to 12 investments for $12 in their advantage program.
  4. Go to the relevant website and fill out the necessary forms to start the process.  Note that for some securities, Computershare and Shareowneronline allow you to fill out forms online and start the process electronically.  If you are a non US resident, like me, you’ll need to set up your accounts the old-fashioned way; namely, print out documents and send it to the relevant shareholders services company directly.
  5. Pat yourself on the back.  You’ve done it.  Now you can go about “forgetting” about the new wealth-creating structure that you’ve just set up / “fired”.

The Occasional Glancer

The only material difference between you and your less interested brethren, the Fire & Forgeter, is a commodity position (if you so choose).

  • Repeat steps 1-4 from the Fire & Forget investor
  • Please do bear with me as I get this component up and running asap.  

The Hobbyist

Key differences are that you may decide to set up a brokerage account for trading Exotics and I do suggest you set up a commodity position (5-10%) as this will act as long term insurance to your portfolio.

  • Similar to the Occasional Glancer, repeat steps 1-4 from the Fire & Forget Investor
  • As with Occasional Glancer, please bear with me as I get this component up and running.

Once you have set up your accounts, you can (and should) monitor them occasionally (DRIPs only really need checking every several months, if that).  Feel free to move on to Maintain your own Temple once all of your initial investments are established.

Go to Maintain your own Temple.

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