September 24, 2021
Keeping an early morning commitment when a friend stays late the night before is tough! I may not get to 1000 words today, but I'm still gonna write!
What to write about though... Hmmm... I guess I'll write about my IRA Allocations 😛
Last night my buddy helped me set up my allocations for an investment account I have.
I prefer to have a simple setup with some diversification, but not so much granularity that I have to actively manage it to do well. I just don't have the time to give to it right now.
Luckily Index funds make that pretty easy! In case you haven't heard of them, they are typically a large group of stocks that are tracked as a whole and then your money tracks how the group is doing on the exchange rather than just one individual stock. It gives you the benefit of tracking the entire section of the market so you see more consistent gains.
The value of the market as a whole is increasing in the long run, whereas individual companies are more risky to invest in (they could go out of business).
But like I mentioned earlier, there are many different index funds: Large Cap, Mid Cap, Small Cap, specific industry funds, etc. This is where I didn't know enough to properly allocate my funds.
Luckily my buddy has some experience and was willing to share. Basically Large Cap funds are tracking the mega-corps like Google, Apple, Facebook, Amazon, etc. Mid and small cap funds just track different groups of companies based on their revenue amounts.
There are many specific index funds. Some for energy companies, health care companies, global companies, companies in specific countries, etc. This is where things started to get too granular for me. Remember, I don't want to be required to monitor things too closely. I'll still keep an eye on everything though.
Anyway, I opted to diversify into just a handful of these funds.
- A couple US large cap funds
- A US small cap funds
- A global large cap fund
- A global small cap fund
This will give me a nice range of companies to track without getting so detailed that I need to monitor closely.
Investing in the stock market through index funds will be much better than sitting on the sidelines with cash.
I thought I was invested fot eh last 6 months, but apparently when I rolled my 401k from a previous company into a traditional IRA, I didn't set up my allocations... So I didn't see any gains or losses over the last 6 months... 😕 But better late than never!
We also got into some server admin stuff last night. He's been self hosting some services for a few years now and got pretty involved with writing custom scripts a while back.
Neither of us have as much time anymore, but we're still nerds about it and we both have servers. I'm trying to set up a media service so we can put movies and shows on the server and watch them from the TV without putting in the disk every time.
The problem is I bought a beast of a server. It's a full-on rack mount PC that's industrial-grade and took way more BIOS configuration than his server did...
It also didn't support installing the Debian Linux distro so I had to go with another one I'd never heard of (OpenSuSE). That makes working on it more difficult because commands and folder structures aren't the same between our servers.