Developing a Strong Financial Structure Tier-2

Developing a Strong Financial Structure

a. At Tier-2, your goal is to build a baseline portfolio that will serve as the foundation for entering Tier-3. OneVxrse guides members to develop their portfolio over a minimum of 5 years, with the option to extend it up to 10 years. As you progress, you may aim to reach milestones like $10,000, $25,000, and $100,000 within a 10-year timeframe. We recommend reviewing the Tier-2 Model portfolios to decide which stocks to include in your portfolio. Avoid the mistake of underdiversifying or over-diversifying your portfolio. It’s also essential to maintain a reserve of cash (the portfolio percentage will be discussed in Tiers 3 and 4). Members are encouraged to review the Tier-2 Model Portfolios and choose investments for their personal portfolios.

b. It’s time to build your portfolio. We encourage you to read the Next Steps, Rules of Investing, and watch the videos to strengthen your investing mindset.

c. Ensure your portfolio is set on “cruise control,” meaning all processes should be automated. This includes automatically transferring your paycheck to a savings account, then to a brokerage account, and finally purchasing stocks monthly.

d. Practice Dollar Cost averaging which means that you transfer an equal amount of money from your checking or savings account to your brokerage account You contributions should either be once a month, every two weeks or weekly if you are able to do so. You will then purchase the same number of stocks with each contribution to your account.

e. Keep a small amount of Reserve cash as identified in the example/simulated portfolio above. A more in-depth portfolio strategy will be discussed in Tier- 3.

f. Throughout the year, the team will send out Flash Alerts whenever we add new stocks to our portfolios. Keep in mind that if the 3-5 stocks in your portfolio are still rated as a buy, we recommend not trading them for the new stocks announced in the Flash Alert unless you have a good reason to do so.

g. Avoid the mistake of not having enough stocks in your portfolio, and don’t overload it with too many stocks.

h. Some stocks in the portfolio show negative profits. We celebrate when stocks are negative, as it means buying great companies at a discount.

i. It’s recommended that you remain in Tier-2 for no more than 6-12 months, or until you and the Managing Director agree you’re ready to move to Tier-3