Play Money: Invest AND Have Fun Story

Do you have a “play money” allocation in your investment portfolio? Investing can be quite simple. Mike Piper has a one-fund portfolio.

Many Bogleheads, followers of the late John Bogle’s investing philosophies, embrace a three fund portfolio.

These are effective ways to build wealth over time via continual additions and compounding. They’re also rather boring, and there’s absolutely nothing wrong with that.

Some people crave a little excitement or a chance to make outsized gains, however, and that’s where the concept of play money comes into play. Who knew investing could be fun?

What is Play Money?

I view play money as investments you make that deviate significantly from what you own in the bulk of your portfolio.

Ideally, it’s a fairly small allocation, although I feel it’s reasonable to increase the percentage as your net worth increases, particularly when you’re financially independent and then some.

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