Video summary

If I Started Investing in 2026, This is What I'd Do (My Exact Plan)

Main summary

Key takeaways

Finance

Finance-focused summary

The speaker outlines a repeatable, long-term investing plan starting in 2026 that focuses on:

  1. “Housekeeping” risk controls
  2. A disciplined investing schedule using dollar-cost averaging (DCA) plus a rules-based “dry powder” add-on
  3. A diversified portfolio structure split between:
    • A broad market ETF tied to the S&P 500, and
    • Up to 10 individual stocks selected using fundamentals

The overarching message is that investing is a skill rather than gambling, and that most value comes from structure and psychology—not timing.

Instruments / tickers / assets mentioned

  • S&P 500 (broad market exposure via ETF; ticker not given)
  • Treasuries (used as “dry powder” with minimal interest)
  • Money market account (used as “dry powder” with minimal interest)
  • Example individual stocks mentioned:
    • Palantir
    • Nvidia
  • Individual stock constraint:
    • Maximum is 10 stocks (no additional tickers provided)

Key numbers & explicit recommendations/cautions

Housekeeping / pre-investment checks

  • Emergency fund: 6 to 12 months of expenses
  • Avoid expensive debt: “Kill expensive debt first before investing”
  • Max tax-advantaged accounts first: 401(k)s / IRAs (or equivalents by country)

Portfolio construction

  • Max individual stocks: 10
  • Allocation rule: 50% into S&P 500, 50% into the 10 chosen stocks
  • Expected market return: ~10% per year average over 10–20 years (not guaranteed annually)

DCA + “dry powder” deploy method

Monthly investing example: total capacity $1,000/month

  • Invest 50% immediately: $500/month
  • Hold 50% as sidelined cash (“dry powder”): $500/month

Add-on rule (“double down”) For each stock you own:

  • Track the stock’s highest point over the past year
  • If the current price is ≥20% below that high:
    • Increase the monthly purchase from $500 to $1,500
    • (Interpretation: deploys the parked $500 plus an additional $500, based on the described math)
  • When the price recovers and is no longer 20%+ below the prior high:
    • Revert to the normal $500/month
    • Example described: price recovery from $79 to $81–$83

Leverage / risk

  • No leverage / no margin
    • Rationale: risk of a margin call and forced sale by the brokerage if prices drop

Macro / inflation & timing avoidance

  • Purchasing power erosion from cash:
    • Sitting in cash for ~20 years reduces purchasing power by ~45%
    • Inflation described as reducing value to roughly “50 cents on the dollar” over 20 years (approximation)
  • Missing market gains:
    • Missing the top 10 days in the prior 20 years can “slash” returns by about half

Age-based risk posture

  • Younger investors (example described):
    • If 25 with 40 years ahead (or 50 years ahead), can take more risk
  • Older investors:
    • If 55, should be more cautious
    • More bonds, less exposure to tech/AI

Methodology / step-by-step framework (as stated)

  1. Step 1: Do “housekeeping” before buying stocks

    • Build an emergency fund (6–12 months)
    • Eliminate expensive debt before investing
    • Max out tax-advantaged accounts first (401(k)s, IRAs)

  2. Step 2: Create a budget and implement DCA

    • Determine monthly investable amount (example $1,000)
    • Invest 50% monthly (example $500)
    • Keep the other 50% as dry powder in treasuries/money market

  3. Step 3: Rules-based “double down”

    • For each stock you own: if price is ≥20% below the 1-year high, temporarily increase buys
      • Example: $500 → $1,500
    • Resume normal DCA when the stock is no longer 20%+ below the 1-year high

  4. Step 4: Build portfolio mix

    • Hold 50% S&P 500
    • Hold up to 10 individual stocks for the remaining 50%
    • Select stocks using fundamentals, including:
      • Management quality
      • Margin quality
      • Revenue growth
      • Debt
      • Cash and broader business evaluation metrics

  5. Step 5: Avoid leverage

    • Do not use margin/leverage due to margin call and forced selling risk

  6. Step 6: Match risk to age

    • Increase risk earlier; shift toward bonds / reduced tech exposure later
    • Example guidance given around age 55

  7. Step 7: Long-term mindset

    • Emphasize buy and hold; avoid chasing dopamine/excitement
    • Avoid market timing: “timing the market is gambling”

Disclosures / disclaimers

  • No explicit formal “not financial advice” disclaimer appears in the provided subtitles.
  • The speaker states:
    • “I don’t give people stock picks… buy and sell alerts is a scam,”
    • Framing the approach as skill-building rather than direct recommendations.

Presenters / sources mentioned

  • Tom Nash (speaker)
  • Mentioned associated institutional belief/source:
    • Warren Buffett
  • Website/academy links mentioned:
    • tradingnut.com/tom nash
    • patreon.com/tomnash

Original video