$100K IRA Strategy: The 60/30/10 Compounding Machine (No Guessing)

0:00We don't want to put ourselves in a situation where I check engine like come on as soon as a red they happen, you know what I'm saying? So you're giving yourself some wear with all. So I would give myself a little wear with all. So I can knock this red sort of if it goes against me a little bit, I got some time to let that play out. Drop. My question is someone that's 21 like myself, what between 5 to 10 K, give us a blueprint or a rundown of how you would navigate 5 to 10 K between investing by whole and swing a leap train. Just want to see how you'll go about that. Appreciate so little. So 5 to 10 K man, I would literally go, I'm going 2,000 in my Roth IRA, tax-free wealth, I'm going 2,000 in the Roth IRA, that way I know that's working for me, reinvested dividends. I'm going, I'm going 1500 growth, I'm going 500 dividends, 100%, especially if you at your age 21, I'm going 1500 growth, I'm going 500 dividend, I'm loving that like that.

1:03And then I'm taking the rest of that money to other three and I'm going, I'm going to find me a great, I'm waiting for the per, I'm not the perfect moment, but I'm looking for markets like this. But I can get something that's a strong company, solid company, that's matching my criteria. And of that 3 grand, I'm willing to risk at least 1200 on a plate. I'm putting the rest of it on the side and I'm waiting to see if my plate work out the way I want and I'm buying into strength. I'm cutting my stop at, because it's 1200, I'm cutting my stop at 10 to 15% that way I can keep that and I can re-enter a plate and go my way. And I'm sitting on the side, I'm letting that grow. If I'm doing 10, I'll flip it around the other way. If I got 10, I'm putting 45 in the Roth. I don't want to max the whole thing out yet. I'm putting 45 in the Roth and I'm keeping the rest and I'm going my move from there. So now I'm saying, all right, cool, guess what?

2:04Now what I'm going to do is I'm going to take that other 55 and I'm saying all right, I'm going to go with, I'm going to go Roth for that, I'm going to put 2000 of it in dry powder on the side and I'm waiting to go to action. And if I don't see a plate out the gate, guess what I'm doing? I'm going to keep funding that with at least $100 a week or $200 a week so I can keep growing that thing out. I'm not in the rush to make a plate, I'm going 45, I'm going growth with 25, I'm going dividends with the other part of it, the 2000 and I'm letting that work. But crap, why are you going to go more with options and dividends? Well, here's why. I mean, then the Roth I read, here's why. I'm going to let, I want enough to work and play the options game with security. Well, I ain't paying again if I put $1,000 up. If I know I got 10 and I only put a thousand in the option market, I know that's that ain't, I can play with it, but I don't have the mental comfort.

3:08Right, remember, if you got a thousand and you invest a thousand, then you don't have the mental clarity to let that plate work the way you want. But if you got a thousand and you say, all right, let me just keep building this so I get 2000. Let me keep playing. Now what happens is because a thousand at 800 and you'll play, you're saying, all right, well, I still got a thousand on the side. Remember, I talk about we want, we don't want to put out some of the situations where we want to check engine like come on. Soon as a red they happen, you know what I'm saying? So you giving yourself some wherewithal. So I would give myself a little wherewithal so I can knock this red. So if it go against me a little bit, I got some time to let that play out. Do you feel what I'm saying? So that would be how I would play that. I would have enough to work. I can get in the play. I still got some dry pile on the side. And if I play, I would just move my stopper. I would make sure I understand. And I would find a sect in a market that the market is rewarding. And that's why I'm looking for my player. Hey, try out it's Jamie. Thanks for taking my call.

4:09I have a question for you. I've got about $100,000 sitting in an IRA at the bank that matures in March. The capital originally came from my grandparents' trust to my father before he had passed. And now it's been preserved for our family. Right now it's earning basic compounding interest at the bank, but I'm preparing to move it to a roll over IRA. I'm not looking to play it safe, but I am looking to build a real compounding machine. For context, I already managed another $100,000 portfolio, half of it in long-term buy and hold equities, and the other half in your option place. So the IRA, this particular IRA would be strictly for long stocks and ETFs. If your mission was to take legacy capital and engineer it, for aggressive 10 to 20-year growth, how would you structure it? Let's work through it. So the compounding machine, what I love about that idea is we want compound this. So here's how we do it. So if I'm going to, so first we got $100,000, right?

5:10So let's break it down. First of all, out that $100,000, let's do this. Let's invest. Let's put, let's keep, I want to put at least 25K on the side. Anywhere between 25 to 30K, I want that on the side. So that means we're going to have it invested 70 to 75K. And the reason being, with you never want to be fully invested, I never want you fully invested. And the reason I don't want you fully invested is because the situation is like this. Right? So I don't want you fully invested. So core, we're going to base the core part of it on what are the areas of the market that you like? So if it's me, the areas of the market that I like a lot is tech, financials, right? I love that part of the market, but I also love medical equipment.

6:11I love that. That's amazing for me. But here's the sleeper part of the market that I like. I like industrials, but not just regular industrials. I like companies that do stuff like piping. Companies that do stuff like I was looking at, I think I put a company in the Patreon, not in the Patreon, and Travis anonymous the day. This company deals with street sweeping. They deal with underground piping in different cities. I like those kind of companies because they bore in compounders. Right? So that's why I like companies like fixed systems. FIX, you know why? They're not interrupted by AI, right? And they are necessary at all times. So my core would be companies like that. Industrial companies, but I also like tech. So it'd be a mixture, but you say you like the satellite. So that's high level.

7:12We looking at it high, but then we talking high conviction. So I don't want to go there. This is my core foundation. My core foundation would be something like infrastructure that paid dividends. Here's why because I can still get slow, boring, high compounding growth that pays dividends. Does that make sense? Right? So think about it. So if you go look at a company like fixed or you look at a company like TPL, you look at a company like those type of companies that still are outperforming the market, but still play quality dividends. Think about it coming like waste management. Just hit a all-time high. Right? They just hit all-time high, but also increase the dividend by 14%. Right? Go think about coming like I talk about MTZ. Right? This company that deals with shipping containers. I like that type of company. Not just because they're talking about right now, but these are the companies that's boring. That's why I love trappers.

8:12I can talk about that all day with them now and get mad. So it's a compounding company that's boring as hell, pays a solid dividend, but it's also beating the market every year. That would be my, that would be the company that I love. That would be a company that I will fall in love with. So I will find them. I will find them. Now, I'll be honest with you. From an ETF perspective, I wouldn't really go ETF from this perspective, only because you won't legacy. You won't compound. You won't, you won't that there. So I wouldn't go ETF too much here. I like the individual, but I'm not mad at it. So if I go ETF here, watch this. If I'm going ETF here, I'm going like, I don't mind going ITA defensive. I don't mind going. But if you want growth here, I wouldn't go dividend ETF here. I will go something like medical, but I will find medical industry ETF.

9:18Why? Because they always evolving. They always growing. They always pushing forward, right? I will go that way. But again, that's me. There's not me telling you what to do. This is saying, if there's me playing with 100 grand, this is how trap will layer it out. Because I will save the high conviction for my technology. I will save my high conviction for my speculation. I will go boring, solid, that's innovating, right? I'm thinking in this way, from core, I'm even thinking something like, let me see something. I'm going to show you something right quick. So I'm looking at, I'm going to give you a couple of comments that I like, right? I'm like in United Reynolds. Now some people might be like, man, that pain caused this much. Remember, she got 100 grand. She won't play in a certain way. I like a company like you, United Reynolds. I like a company like fixed comfort systems. I like a company like EME, right? So these plays, you're going to be like, man, trapping things costs a lot.

10:19Well, what are we going for? We talking legacy plays here. I like TPL. I like these companies. Why so I got another one for you. Curtis Wright, I like this company. Take a simple CW, right? I like these companies, right? This in the industrial space, they got hella growth though. They got hella, hella, hella growth. Another company called Woodward, take a simple WWD, right? Industrial companies with a lot of growth, right? Also, if we're going to go the other way, I'm going to go, watch this. I'm going to give you one that I like. It's kind of got a little tag on it. When I think right now, it's a perfect time to play with this one. I like ASMR in this area. Because we talking about foundation, now you like, man, trapping nobody can't. I'm talking foundation that's consistently beating the market.

11:20Now, I'm going to tell you the only reason why I wouldn't say, like Caterpillar or John Deere, because they just got active this year. Last year, they ain't been active like that. If you go look at the chart, last year, and this year was really good for them, I'm talking about a company that's being consistent with just like punching on the market. If you're going to go tech, I wouldn't go, remember, you'll satellite going to be what you introduce tech at, right? Because that's your higher level. And you're saying, now satellite for me is, what do I see growth that is going to new way? Like, what do I see growth that's in the future, right? So now, here's my core would be 50 to 60% of this portfolio. So this core portfolio is going to be 50 to 60%. I would lean toward the 60% way. And the reason why? Because that higher conviction, I'm only making that 10% of my portfolio. That higher conviction, I'm only making that 10% of my portfolio.

12:21So now, in that second way, that satellite, that's what your Nvidia comes at, that's what your growth, that's what you're going, high growth, but foundationally strong, right? So you're not going growth with no earners, we're going growth with earnings, growth with support. So we're going, that's what your Nvidia goes, and that's what your STX goes in that, that's what you go find, that's what that makes sense? Does that make sense for you? Right, that's what my growth, that's what my, okay, like I see this, I see what they doing, I see the vision here, I see the growth here, I see the compounding here, I like it. Right, so now we thinking technology, we thinking, you know, again, that's where you may go with GEV, that's where you go with Nvidia, that's where you go with AVGO, that's where you go with TSM, that's where you, now you go on the other side and you say, like let me get some PWR of me going there, right?

13:24That's why I'm playing that, that's why I'm playing that area at. So I'm going, so your satellite is, how am I looking at the future saying, this what we going in the future, but here are the companies that have a great infrastructure for the future, right? And the future depends on these companies, and I will go from different areas, I will go, I will still go, okay, medical, I will go tech, I will go financials here. So this is where you find some strong financial companies, even in small caps, don't sleep on the small cap space here. I will find like cyber security here, this is where I find that at, right? So, but this part of my portfolio you're going to make up 30%, so now we're 90% in and not the last 10%, that's where you go your high conviction at. That's where you say, I, this part of my portfolio is where I see, this what I'm being a little speculative at, this what I'm, I'm a, this, this don't move my portfolio if it goes down

14:26because I found balance in my other three, right? And so this one is where you go speculation that this one is where you find, you put a little risk on the table, and you say, hey, I'm willing to take that. But I would even say, you know, and that's just of the 100% that's in the market all together. And so remember if we break it down, I will always be, you know, 2030 killing the size of you, take that from a hundred, that's 25%. And so now you're saying, what I'm doing with the other 75% and you break that down into three tiers, and of the 75%, the smallest part of that, the 5% of that would be a 10% of that would be your high conviction that's it and I would break the other part down. And that's of that. And of that 75% of 100%, I would break it down 60, 30, 10. And I'm always keeping that cash on the side to where I can always, that 25, K to 30, K. And now I'm adding to that. And I'm gonna tell you something,

15:26this is also not the time for you to be super aggressive in your option place. Because now I'm thinking like this with my mind, when I'm being an options market, I'm being so strategic in the options market because I want my options market account to fund this account. So I'm not just slaying money, because I got some bread. I'm like, yo, how do I get in the place that fit me so that I can use that money? I'm taking 10, 15% of every win is going over here.