The Sensible Investor Podcast
By Kenny Soto
Investing is an area of our lives that demands responsible decision-making, not YOLO bets. My hope with this podcast is that you discover fundamental principles about investing that help you not lose money while, building wealth for yourself and the future generations of your family.
I hope you enjoy listening and thanks for tuning in!
- Kenny Soto
Note: I am not a financial advisor and this podcast was created for entertainment purposes only.
The Sensible Investor PodcastJun 26, 2021
03. Creating Your Portfolio & The Importance of Diversification
In this episode of the SIP, I talk about creating your portfolio.
You’ll learn why you should think about your portfolio mix BEFORE investing, what assets have low and high volatility, and how to think about rebalancing your portfolio.
Here’s the MIT Portfolio Management lecture that I found on YouTube. People paid to listen to this professor, we get to listen to him for free!
Books mentioned: MONEY Master the Game: 7 Simple Steps to Financial Freedom
Bonus: here’s Ray Dalio talking about correlation in a portfolio.
Investors you should know about: Burton Malkiel and David Swensen
Check out Joseph Carlson’s YouTube for great example of how to use M1 Finance for portfolio management. If you watch any video, comment saying “I found you via the Sensible Investor!” I’m trying to have him become my first guest!
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If you’d like a shoutout on the podcast OR you want to submit an idea for future episodes, fill out this form: https://www.sensibleinvestor.club/new-topics
Want to support this podcast? Share it with your friends by sending them this link: Anchor.fm/sensibleinvestor
I’m active on Twitter, say Hi: @ThisisKennySoto
Or you shoot me a DM on Instagram: @KennySoto
If you’re thinking about investing and haven’t opened an account, I got you! Here are some of the brokerage accounts I use:
M1 Finance is a godsend for portfolio management. You’re able to create “pies” and “slices” that give you complete control over the percentages you set for your assets and asset classes. Rebalancing your portfolio is easy with this tool too! If you sign up using this link you get $30 deposited into your account!
Betterment is the brokerage I use for my individual retirement account. Whether you’re looking for a Traditional or a ROTH, this is THE account I recommend to all of my family members and friends who want to invest in the long term, they don’t want to pick and research individual stocks, and just want something that they can set and forget. I highly recommend this account. When you sign up for a Betterment account and fund it, we both get $5,000 managed for free.
And for those of you who want to get into cryptocurrency investing but, don’t know where to start—DON’T use Robinhood. Instead use Gemini. They allow you to buy cryptocurrencies and also lend out your investments to institutional investment firms so that you can also gain a yield on your money (yes, you can loan your money out too)! When you use this link, we’ll each get $10 USD of Bitcoin when you sign up.
02. The Foundation: The 10% Rule and Dollar-cost-averaging
Getting started in your investing journey mainly requires 3 things:
- Capital
- A regular cadence in which you'll use the capital
- And the right amount of capital relative to your budget
In this episode, I talk about using 10% of your paycheck for your investments and how to leverage the technique of dollar-cost-averaging so that you can learn to deal with volatility.
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Here's a resource on sunk-cost fallacy explained…(this is in reference to the concert scenario I shared). Keep this in mind if you want to be a short-term investor/day trader.
Books mentioned:
"The Richest Man In Babylon" by George S Clason
If you’d like a shoutout on the podcast OR you want to submit an idea for future episodes, fill out this form: https://www.sensibleinvestor.club/new-topics
Want to support this podcast? Share it with your friends by sending them this link: Anchor.fm/sensibleinvestor
I’m active on Twitter, say Hi: @ThisisKennySoto
Or you shoot me a DM on Instagram: @KennySoto
If you’re thinking about investing and haven’t opened an account, I got you! Here are some of the brokerage accounts I use:
Robinhood is a great account to get if you’re looking to invest in single stocks (they also have access to a lot of Chinese/international stocks that are not available on other platforms). You get one free random stock when signing up using this link.
M1 Finance is a godsend for portfolio management. You’re able to create “pies” and “slices” that give you complete control over the percentages you set for your assets and asset classes. Rebalancing your portfolio is easy with this tool too! If you sign up using this link you get $30 deposited into your account!
Betterment is the brokerage I use for my individual retirement account. Whether you’re looking for a Traditional or a ROTH, this is THE account I recommend to all of my family members and friends who want to invest in the long term, they don’t want to pick and research individual stocks, and just want something that they can set and forget. I highly recommend this account. When you sign up for a Betterment account and fund it, we both get $5,000 managed for free.
And for those of you who want to get into cryptocurrency investing but, don’t know where to start—DON’T use Robinhood. Instead use Gemini. Gemini allows you to buy cryptocurrencies and also lend out your investments to institutional investment firms. You get the chance to gain a yield on your money (yes, you can loan your money out)! When you use this link, we’ll each get $10 USD of Bitcoin when you sign up.
01. Why I started the SIP?
“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb
In episode one of this podcast, I talk about why I am even doing this project and what the Sensible Investor Podcast is.
This podcast is for anyone who is new to investing, looking for new strategies, or for anyone who is thinking about doing but still hasn't started.
If you’re thinking about investing and haven’t opened an account, I got you! Here are some of the brokerages I use:
Robinhood is a great account to get if you’re looking to invest in single stocks (they also have access to a lot of Chinese/international stocks that are not available on other platforms). You get one free random stock when signing up using this link.
M1 Finance is a godsend for portfolio management. You’re able to create “pies” and “slices” that give you complete control over the percentages you set for your assets and asset classes. Rebalancing your portfolio is easy with this tool too! If you sign up using this link you get $30 deposited into your account!
Acorns is the best investing account for anyone who just wants to start with small amounts of cash. They have a round-up feature that lets you invest money from all of your transactions from other bank accounts, rounded up to the nearest dollar. It’s one of my earliest accounts.
Betterment is the brokerage I use for my individual retirement account. Whether you’re looking for a Traditional or a ROTH, this is THE account I recommend to all of my family members and friends who want to invest in the long term, they don’t want to pick and research individual stocks, and just want something that they can set and forget. I highly recommend this account. When you sign up for a Betterment account and fund it, we both get $5,000 managed for free.
And for those of you who want to get into cryptocurrency investing but, don’t know where to start—DON’T use Robinhood. Instead, use Gemini. They allow you to buy cryptocurrencies and also lend out your investments to institutional investment firms so that you can also gain a yield on your money (yes, you can loan your money out too)! When you use this link, we’ll each get $10 USD of Bitcoin when you sign up.
Resources mentioned:
- The first investing book I ever read ➡️ "Charles Schwab's Guide to Financial Independence: Simple Solutions for Busy People"
00. The Sensible Investor - Podcast Trailer
Common sense is not so common and as an investor, not having common sense can lead to you losing your money. It goes without saying that investing has never been easier to get into. But just because investing is an exciting topic, doesn’t mean your strategies should be risky.
In fact, how you invest should be boring if you’re doing it right.
There seems to be an overwhelming amount of assets to choose from nowadays and with that also comes a ton of online gurus, Youtubers, and financial experts on Tiktok and Instagram who are all telling you where you should put your money.
That’s not what this podcast is about. This podcast is about sensible investing—using your common sense and the amazing resources on the internet to help you learn how to become a better investor. Note that although I am not a financial advisor, I am not a millionaire, and I am not some renowned expert—I am learning how to use fundamental principles to help me avoid losing my money.
And you can too, just by joining me on my journey and hopefully creating your own investing strategy. In this podcast I will not tell you what to invest in, nor will I push a specific strategy to help you pick your investments. What I’ll be doing is showing you the expansive world of investing and I will also cover the inexhaustible list of topics that you should be aware of. If you’re still listening, I hope you enjoy learning about these topics just as much as I enjoy talking about them.
I’m excited to see how we both grow from this experience and I’m grateful for your time.