2026 Investment Plan Revealed: From Cash Strategy to Commercial Real Estate

🚀 Introduction

As 2026 approaches, I want to share my investment plan with you. I'll detail everything from cash management strategy to ETFs, individual stocks, cryptocurrency, and commercial real estate purchase plans.

Investment plans should be flexible, but having a clear direction is crucial.

💵 Cash and Cash Equivalents Strategy

This year, I've significantly increased my cash allocation (about 11% of total). Let me share why and how I plan to use it.

High-Yield Savings Accounts (HYSA)

I use Capital One 360 Savings.

Simple and reliable
Quick deposits and withdrawals
Reasonable interest rate

Currently operating two accounts:

Account	Purpose
Emergency Fund	Family emergency fund (3-6 months expenses)
Travel Account	Travel fund with my wife

SGOV: Essential for California Residents

California taxes are brutal. That's why I keep a significant portion of cash in SGOV (Short-Term Treasury ETF).

SGOV Benefits:

4-5% yield
State tax exempt: Huge advantage in California
High liquidity: Cash out whenever needed
Low risk: Based on U.S. government bonds

The higher your income, the more effective these tax-saving strategies become.

Cash Reserve Purposes

1. Commercial Building Purchase Fund I want to buy commercial real estate in 2026. It's a big purchase, so I'm accumulating cash.

2. Dry Powder Market corrections create opportunities. I expect a potential correction in early-to-mid 2026, so I'm keeping cash ready for dip buying.

The Golden Rule of Cash Holdings

Keep 3-6 months of living expenses outside the stock market.

Why?

Don't sell stocks in panic if you lose your job
Selling at a loss during downturns is the worst decision
Peace of mind = better investment decisions

🏢 Commercial Real Estate Purchase Plan

Why Commercial Real Estate?

I currently operate one rental home, but I want to expand into commercial buildings.

Commercial real estate advantages:

Long-term lease contracts (stable cash flow)
Tenants cover maintenance costs (NNN leases)
Potentially higher returns than residential

Timing Considerations

Interest rates are key.

Lower rates → better numbers
Target: 2026, or 2027 at latest
Won't force a purchase (numbers must work)

I won't make a forced investment. I'll only buy when the numbers make sense.

📈 ETF Investment Plan

Maintaining the 3-Fund Portfolio

My core strategy is the new three-fund portfolio:

Foundational: VUO, S&P 500
Value: SCHD, VTV
Growth: SCHG, QQQM

I'll continue maintaining this balance.

2026 Additional Purchase Plans

ETFs I'll specifically increase:

ETF	Reason
VTV	Want more value stock exposure
SPMO	Long-term belief in momentum investing

I have strong conviction in SPMO (S&P 500 Momentum ETF). I believe momentum strategy is effective long-term.

📊 Individual Stock Strategy

Stocks for Continued DCA

Stocks I'll consistently dollar-cost average monthly:

Stock	Current Weight	Conviction Level
Berkshire Hathaway	7%	⭐⭐⭐⭐⭐
Microsoft	5%	⭐⭐⭐⭐⭐
SoFi	3%	⭐⭐⭐⭐

These three have my highest conviction, so I'll keep accumulating.

Opportunistic Buying

If stocks like Meta have a monster drop, I might buy.

Conditions:

Must be a well-researched company
Fundamentals must be intact
Drop must be due to market fear, not company issues

I don't buy recklessly. I only buy stocks I understand.

🪙 Cryptocurrency Investment Plan

Continuing Bitcoin DCA

I have high long-term expectations for Bitcoin.

Monthly DCA with fixed amount
Currently 81% of crypto portfolio in Bitcoin
Long-term hold strategy

Only Small Amounts of Ethereum

I might buy Ethereum occasionally, but not as actively as Bitcoin.

No Additional Altcoin Purchases

Holding existing Cardano, XRP positions, but no new purchases.

I recognize cryptocurrency is highly speculative. That's why I approach it conservatively.

🌟 Roth IRA Priority

Always Max Out First

I'll max out my backdoor Roth IRA every year without fail.

Why?

Tax-free growth
Tax-free withdrawals in retirement
Maximize compound effect

2025 Contribution Deadline

2025 Roth IRA contributions are allowed until April 15, 2026.

There's still time, so no rush, but contributing as early as possible is best. Every extra day of compounding matters.

📌 2026 Investment Checklist

Item	Status
Max backdoor Roth IRA	⏳ Annual priority
Stack cash in SGOV	✅ In progress
Increase VTV, SPMO allocation	🔜 2026 plan
Berkshire, Microsoft, SoFi DCA	✅ Monthly
Bitcoin DCA	✅ Monthly
Search for commercial property	🔜 2026-2027 target

🎯 Conclusion

Key points of my 2026 investment plan:

Strategic cash: Use SGOV, save on taxes
Prepare for opportunities: Secure dry powder
Maintain balance: Stick to 3-fund portfolio
Focus on conviction: DCA only stocks I believe in
Tax efficiency: Roth IRA first priority

Investing is a marathon. Consistency and patience ultimately win. Wishing you a successful investment year in 2026! 💪