⚖ What's your optimal investment split: ETFs or stock picks?

A recent r/investing thread asked a practical question: how do you split your money between safe, broad ETFs and a 'play money' account for picking stocks? The poster keeps most of their money in ETFs but uses a smaller portion for trading, wondering about the best rules for rebalancing and managing gains.

Statistically, the boring path wins. Most retail stock pickers underperform the market. This calculator projects your long-term wealth based on your chosen split between core index funds and speculative stock picks. You can see exactly how much that 'play money' allocation might cost your future self.

The historical inflation-adjusted average of the S&P 500 is around 7%. Active retail traders typically earn much less. Dalbar's QAIB report shows average equity investors pull in around 4% over the long haul.

Chasing the market with a portion of your portfolio creates a drag on your overall returns. Adjust the rates below to see how your play money's performance impacts your final net worth compared to a 100% index fund strategy.

This view was inspired by:

• stock-vs-index-01kww9

For further related reading, check out:

• Reddit