In this episode, I discuss the concept of having a "cowboy or cowgirl account" as a way to enjoy some speculative investing without jeopardizing your financial future. The idea is to allocate a small portion, ideally less than 5%, of your investable assets into high-risk, high-reward investments such as cryptocurrencies, NFTs, or individual stocks, while keeping the bulk of your assets in long-term, diversified portfolios. I emphasize the importance of maintaining financial discipline by ensuring that these speculative investments do not exceed a manageable percentage of your portfolio, allowing you to indulge in adventurous investing without significant risk to your overall financial stability. Of course, it’s important to remember, you do NOT need to have a cowboy or cowgirl account. Through examples of good and bad usage, I illustrate how you can responsibly balance fun investments with serious, long-term financial planning.

Key Takeaways:

• A "cowboy or cowgirl account" allows for some fun and speculative investing, using a small portion of your investable assets for high-risk, high-reward opportunities like cryptocurrencies, NFTs, or individual stocks.

• It's crucial to keep these speculative investments to ideally less than 5% of your investable assets to avoid jeopardizing your financial future.

• The majority of your assets should remain in long-term, diversified portfolios, ensuring stability and financial security.

• Responsible use of a cowboy account means accepting the possibility of significant losses and not letting it impact your overall financial well-being.

• If your speculative investments grow substantially, consider rebalancing to maintain a responsible allocation within your portfolio.

• While not everyone needs a cowboy account, those who enjoy speculative investing can do so safely by adhering to these guidelines.

Key Timestamps:

(00:00) Introduction: Cowboy and Cowgirl Accounts

(01:02) What is a Cowboy or Cowgirl Account?

(01:38) Setting Boundaries for Your Fun Account

(04:25) Examples of Good and Bad Cowboy Accounts

(06:56) Conclusion and Final Thoughts

(07:47) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, cowboy and cowgirl accounts, NFTs, individual stocks, stock picking, speculative investing, the 5% Rule

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com
www.baskinfp.com/post/45