\*Edit\* Guys, I know leverage is dumb, this entire post is saying that my current portfolio is untenable. I am looking for advice on maybe a broad market etf that I can buy once a month and ignore the rest of the time for 25 years. Current best advice I have is pay off car loan which I will be doing, any other ideas for restructuring? The reason I was thinking about margin is my brokerage offers it for less than 4% and as I will be making monthly contributions and I have a side pocket of money I can throw into the account in case of a downturn I was wondering if a 1.4x leverage scenario would make sense. Please relax with the you're dumb comments, I know lol. \*\*
I need advice if anyone has it.
My current situation is I am in my 20s, have lost almost 200k in the past gambling with penny stocks and yolo’s, and am currently in a situation where I have 120k in a 3.3x leveraged portfolio which is all just individual stocks. (Microsoft, Netflix, Celsius, MDA, and TMDX. all about equal positions.).
My current exposure is insane. At a 10% drop I’m losing 1/3 of my portfolio, plus triggering a margin call - it’s with interactive so they just sell stocks, not the entire portfolio, but still.
I want to completely restructure everything. I was watching a Ben Felix video where he says his entire investment portfolio minus his house and stocks in the company he works for is in an etf that has a focus on small cap value stocks and a broad market with European, Canadian, and us stocks. Is this a good idea? If you were in my position what would you do? my goal is retirement in 25 years, additional contributions being 24k a year, and to not be an idiot and blow up my portfolio again.
I will probably end up with leverage, just not 3.3x. 2x or below.
btw, I currently have around 30k in a car loan at 8% interest. Should I sell off 30k in my portfolio to be debt free, or continue making monthly payments.
I am generally a pretty rational guy once I have a system, and am happy to ride 40% loses over 4 years as long as it fits a long term goal. The issue with my current portfolio is that I could be wiped out tomorrow with a small correction.
thank you for the advice.