US ADVANCED COMPUTING INFRASTRUCTURE, INC.
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Our answer to retail investors with minimal capital to invest:

One important topic was to repeat an answer to a question posed by a potential retail investor client.

Myron (his real name) asked: "Can I get some good tips for free? What should a little guy like me invest in?"  By way of background, Myron was on a job interview and had some investments he made this year in stocks. He did not remember all the tickers, did not know what the companies did, and did double his money on one trade, but not sure about the others. He bought them on a whim.

For a retail investor with limited capital, what I suggest is to take money that you can afford to put to work for five years.  Money you won't need for five years for living expenses.  In Myron's case, that was $25,000.

For the first $10,000 (he is a US citizen), I suggest going to Treasury.gov, or Treasury Direct, and buying I-Series US Savings Bonds directly from the US Treasury. You can lock in a 6.89% interest rate for the first six months. They promise to pay 'real' interest after making up for inflation.  This is awesome for investors, and there are even some potential tax benefits. We recommend the first $10,000 go into I-Series US Savings Bonds. Screen-shot below from Treasurydirect.gov.

The next $15,000 goes into a low cost, passive, index equity mutual fund.  We like the ones that track the S&P 500 Index although it is 100% ok if you want to put some into a passive index equity mutual fund that mirrors the Nasdaq Composite 100 (although there is significant overlap), and some into the Russell 2000 (small caps). The S&P 500 is our favorite, and provides the best risk-return tradeoff for a retail investor that cannot do the due diligence or run the quantitative models required to find an edge.

The fund manager we use personally is Vanguard and have invested in their S&P 500 Admiral Class index fund since the 1990s. Fidelity also has a low-cost fund that should be ok. Also, we are setting up a relationship with The Charles Schwab to be our custodian for client funds. It is likely they have a comparable product as well.  The key is to find a very low cost mutual fund (maybe pay 6 or 9 basis points per year in expenses) and to reinvest dividends.

In year two, rinse and repeat. Put another $10k into US Savings Bonds and another $15k into US equities and watch your money grow. As your retirement nest-egg grows, and your wage income grows, there are other types of investments to consider.

The tweet below supports the idea that a 'typical' retail investor should invest using a highly diversified US Equity portfolio like the S&P 500. If you can only buy and hold one stock, best to hold the SPY. If you can hold ~10, then we can help you build a better risk-return portfolio than the SPY. That is what we do.


snapshot of the TreasuryDirect.gov website on i-bonds. White with black and blue letters.
Series I Bonds: TreasuryDirect.Gov (Official)

Copyright 2023 US Advanced Computing Infrastructure, Inc.  
Chicago Quantum (SM) is a protected service mark, registration 113562, by the Secretary of State of Illinois.
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Business Mailing Address: 833 Central Avenue #1292, Highland Park, Illinois 60035-7292

Disclaimer: 
All investing, stock forecasts, and investment strategies include the risk of loss for some or even all of your capital.  Please do your due diligence and research before investing.  Statements made on our website or in social media are not investment advice.  They do not take into account your unique circumstances, risk tolerance or investing objectives.  Please consider our website and social media outlets as for informational purposes only.

The stocks mentioned may not be suitable for all investors.  As with any investment there is risk.  Past performance is not an indication of future results.  Please do your own due diligence on any stock portfolios highlighted.  Finally, we make no guarantees for your financial results.  You bear all the risk, and gain all the rewards of your investments.

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  • Home
    • About Us
    • Contact
    • Our Brochure
    • Stocks Held By Advisers
  • Advisory Services
    • Portfolio Optimization Services
    • Stock Analysis - Up Run
    • Stock Analysis - Down Run
    • Custom Algorithm Development
    • Investment Planning Workshop
  • Project Services
    • Professional Services
  • Market Information
    • Retail Investor
    • Why Use ETFs?
    • Negative BETA Stocks
    • Top Dividend Stocks
    • Stock Price Variance
    • Leptokurtic Stocks
    • Platykurtic Stocks
    • High & Low BETA Stocks
    • Skewness in Daily Returns
    • High & Low Volume Stocks
    • Top Stock Movers
    • Price & Volume Spikes
    • Stock Splits
    • Common Stock Beta Detail
    • US Banking Observations
    • Liquidity Research
    • MEME Stocks
    • Chicago Quantum | Corporate Finance 101
  • Managed Accounts
    • Managed Account BLOG
    • Managed Account Fees
    • Managed Account Considerations
  • Quantum Computing
    • Use Cases
    • Use Case Detail
    • Platforms
    • Platforms Detail
    • Quantum Computing Notes
    • Quantum Computing Companies
  • BLOG: Today's Insights
  • Research
  • PQC Post Quantum Cryptography
  • T-shirts
  • Standard Consulting Agreement
  • Nextsteps