My Current Investment Strategy


Well if you’ve stumbled upon my website you are probably looking to grow your money and/or passive cash flow. The good thing is you have come to the right place! Here I’ll talk about all of my investments in hopes of helping people like you, so lets get started.


As of right now I have lots of stocks, ETFs, bonds, etc., all the stuff that either rolls into a Roth or is being put away pre-tax to be used when I retire. Awesome but what about wealth I can use now? Wealth I can use to free up my time today to do things I want to do vs have to? This is my crossroads; the path I’m currently venturing.


Before I get ahead of myself and start talking about making passive income now, lets talk about my investment strategy as a whole. Some of you might be interested in what my current investment strategy is, whether you’re looking to start and investment plan, comparing your current plan, or just looking to add a new avenue to your portfolio. While I don’t by any means label myself a GURU, I consider my investment strategy easy to manage and effective, so lets check it out!


Future Investment Strategy


The best way to explain my investment portfolio is by breaking it into two groups. The “Future” and the “Present”. My future investment portfolio is pictured above and my present investment portfolio is shown further below in the post. For simplicity we will cover each section separately.


Future Investments

The “Future” represent well… the future. This is where all my retirement accounts are held. While I do have a Roth, 401K, and pension through my job, I don’t actively manage those because I am either not aloud, (pension) or there is a small selection of funds to choose from. What I do manage is my IRA through Fidelity and as you can see it’s broken down into three tiers.


Tier One

 Tier one is run by a 3% value average strategy, where I make quarterly trades. The makeup of this tier consist of iShares Core S&P Small-Cap ETF, symbol (IJR) and the Vanguard Total Bond Market ETF, symbol (BND) and the ideal allocation is 80% in IJR and 20% in BND.


So how does 3% value average strategy work, you ask? Let use an example, say on Jan 1st you bought 100 shares of IJR for $10,000. So next quarter your target value should be $10,300 (3% more than last quarter). April 1st rolls around and you new IJR value is $10,500, woo hoo! Since you’ve made over the 3% we were looking for, you need to sell 2 shares of IJR, which is roughly the $200 excess and move it to my BND ETF.


What happens if your value goes down? Good question. Let’s use the same example above, on Jan 1st you bought 100 shares of IJR for $10,000. So next quarter your target value is $10,300 (3% more than last quarter). Unfortunately, on April 1st your new value is $9,500. First off don’t worry, the stock market goes up and down all the time but the majority of the time it goes up. So what you need to do is sell some of your BND shares so you can purchase more IJR. Since we wanted our fund value to be $10,300 and it’s only $9,500 we need to make up the $800 difference ($10,300 – $9,500 = 800). So since we know the current stock value of IJR on April 1st is $95, ($9,500 current IJR value / 100 number of shares you own) we need to purchase roughly 9 shares to get our back up to $10,300.


This strategy takes all the emotion out of the stock market. It forces you to buy when prices are low and sell off profits when prices are high. If you would like to learn more about this strategy and see the results, you can grab a copy of The Neatest Little Guide to Stock Market Investing or The 3% Signal, both by the famous author and investment manager, Jason Kelly, where he explains his strategy way better than I ever will!


Tier two

 Tier two is run essentially the same way with a couple changes. Instead of the 3% value average strategy, it is 6% per quarter. The makeup of this tier consist of ProShares Ultra MidCap400, symbol (MVV) and the PIMCO Total Return Active ETF bond fund, symbol (BOND) with the ideal allocation being 60% in MVV and 40% in BOND. The reason this tier is able to do 6% in a quarter is because it’s using a leveraged ETF that seeks daily investment results that correspond to two times the daily performance of the S&P MidCap 400. So if the S&P MidCap 400 goes up 1%, MVV should go up about 2% but at the same time if the S&P MidCap 400 goes down 1%, MVV should go down about 2%. Besides those differences, everything is traded the same way, (on a quarter basis) and trade amounts are also calculated the same way.


Tier three

 Tier three is where I buy individual dividend stocks coupled by iShares CMBS Bond ETF, stock symbol (CMBS). My ideal allocation is 70% individual stocks and 30% CMBS. This tier is a work in progress and I’m always looking for new dividend stock ideas, so let me know of any good ones in the comments!


Present Investments

Alright now to the present, this is where I’m building my passive income for use whenever I please.


Present Investment Strategy


Brokerage Account

My brokerage account is through Scottrade and would recommend them for their ease of use and slick user interface. This account is used to purchase a mixture of stocks. I still lean toward dividend stocks in this account but do buy some stocks for pure appreciation. As in my tier three above, I’m always looking for new stocks to check out, so someone let me know about the next APPLE!!!


Website Income

As you can see, I currently own three websites, one of which you’re currently reading! This section of my ‘Present” portfolio I’m really looking to bulk up as it provides great passive cash flow!


I stumbled into websites about three years ago after reading Pat Flynn’s niche site dual. I was so interested in the topic, I ended up building my own website in a niche that was relevant to me at the time. Sure enough it worked and although my passion for that niche died, the site still lives on and is earning money every month! Money in the bank! Don’t get me wrong, it took me time and I had to put in some hard work upfront but now I spend at most 2 hours a month updating the site or providing new content!


So what if I don’t want to put in the time upfront?? Ahh, now you sound like me! I too don’t want to put in the labor because I already have a job where I trade hours for dollars and frankly, that’s what I’m trying to get away from! Good news, there are site owners out there that are always looking to sell their sites. Whether they need money for retirement, new car, new website site, whatever. So this is the avenue I’m looking to build up in this section of my portfolio. Trying to find great, established, profitable websites that I can purchase and live off of the passive cash flow. So now that you know the plan, lets take a look at my current sites.


Site 1

 Site 1 is my oldest site that I wrote about above, the one that got me started. I currently value this site at just under $5,500. This is based off of my average monthly net income year to date, ($226) times 24 months, which is the current valuation for a website its age. Other factors due come into play when valuing websites but I will cover that in another post due to its detail. The revenue for the website is made up of affiliate sales, Adsense, lead generation, and job boards. If your interested in seeing more detail you can check out my month passive cash flow earnings.


Site 2

Site 2 was my first ever website purchase! While it was for a small amount and wasn’t being monetized, the main reason I purchased this website was to understand how to transfer a website. Don’t get me wrong, I like the site and think it has potential but I don’t believe it will make loads of passive income for me… but who knows! I’m currently in the process of changing some pages around and getting ready to input Adsense and EasyAzon on the site. Let’s hope this site starts producing some income. How much… we will have to see!


Site 3 (Cash Flow Addict)

Well as you can see this is the site you’re reading now. Like site 2, I’m in the process of monetizing this site. While the main goal for this site will be to provide information, many helpful products I use to build/buy online websites provide affiliate programs and these programs allow me to provide products at either the same cost or discounted rates to my readers.


Website Purchase Account

Here I build my pool of money to reinvest into other website purchases. While I’m lucky enough to have a job that covers the bills, it also affords me the ability to roll all website profits into this account (less any business expenses) to turn around and buy bigger and better sites!


Savings Account

I’m sure most of the people reading this know what a savings account is and hopefully have one. If not, I would highly recommend starting one, it’s the easiest way to make passive income! I currently use and recommend Capital One 360. While many people still use large brick and mortar banks I urge my readers to look into online banking companies. They usually offer higher interest rates, you can usually deposit using any brick and mortar ATM, and almost all, including Capital One 360, are FDIC insured.


That does it for my current investment strategy. I hope I was able to shed some light for people that are looking to start and investment plan, comparing their current plan, or just looking to add a new avenue to their portfolio. If you have any questions leave a comment below. Also, if you have any tips or avenues I should look into to help build my passive cash flow let me know!