This content was created by Ramit Sethi. This content was uploaded by Ramit Sethi. This is a YouTube video titled "How I Invested $1 Million in One Year" featuring Ramit Sethi discussing his investment strategies for a $1 million portfolio, including core portfolio investments, alternative investments, tax optimization, and philanthropy.
All right, let's talk about the $1 million range. Now, I've had years where I invested millions of dollars, and here's where it went. First, my core portfolio. Personally, the vast majority of my money goes into the same boring index funds that every single person has access to. The only major difference, bigger numbers. Number two, alternative investments with a small slice, maybe 5% of. I would use it for what I call fun money and this would be something I would invest, typically angel investing. Number three, tax optimization. Now, when you are at a higher level with a larger portfolio, you do want to consider certain tax optimization strategies. You've probably heard of something called tax loss harvesting maybe. I personally find it a little bit overblown. There's backdoor Roth, there's estate planning. This is the stuff that with a very large portfolio can save you quite a bit. In fact, there are often some advantages to simply choosing different types of index funds rather than a target date fund, because wealthy people are primarily investing in a taxable account. Next, philanthropy. Once you are at a million dollars, money stops being just about you. In fact, at the highest level of a rich life, it is always about other people.
