I generally recommend the [Bogleheads](https://www.bogleheads.org/wiki/Main_Page) theory of investing. This involves investing in a few ETFs or mutual funds as a diversified portfolio. For example, a [3 fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio). I use [Schwab funds](https://www.bogleheads.org/wiki/Charles_Schwab), but any with low expense ratios will suffice. This is a set and forget strategy that requires very little work.

An important piece is figuring out your [asset allocation](https://www.bogleheads.org/wiki/Asset_allocation) for each fund. The simplest setup is just use a [target date fund](https://www.bogleheads.org/wiki/Target_date_funds), picking your expected retirement year. [SWYGX](https://www.schwabassetmanagement.com/resource/swygx-fact-sheet) is one such Schwab fund with a target retirement date of 2040.

TDFs follow a [glide path](https://www.bogleheads.org/wiki/Glide_paths) that generally invests in stocks when you are young (higher risk), and moves towards bonds as you get older (less risk). You can push the target year later than your normal retirement year if you are comfortable with more risk for a longer time.

Target date funds are not a good idea for a taxable brokerage account. They are mainly only good for a 401k or IRA accounts for tax reasons. See [this thread](https://www.bogleheads.org/forum/viewtopic.php?t=408592) and [this SEC filing](https://www.sec.gov/newsroom/press-releases/2025-21) for why.

This brings up an important question: are there TDF-like funds that can be used in a taxable account? Yes, [iShares](https://www.ishares.com/us/strategies/what-is-a-target-date-fund) has some. [This reddit thread](https://www.reddit.com/r/Bogleheads/comments/1jc8h03/why_vanguard_does_not_offer_a_single_etf_that/) has some good pointers.

Adding leverage increases your risk, but increased risk is the only way to possibly gain better returns.

When you have stocks, brokers will let you take a margin loan of at least 50% or more of your equity value. This gives you 1.5 leverage, at the cost of margin loan interest, which is usually terrible at most brokerages. For example, Schwab will charge you 13% interest as of today. If you cannot make more than 13% on the investments you do with leverage, you won't even break even. Interactive Brokers will give you a much better rate, for example 5%. This is an easier number to beat on investment return. It must have been nice during the [ZIRP](https://en.wikipedia.org/wiki/Zero_interest-rate_policy) era, but those days are gone for now.

One way to reduce interest charges is using a forex margin loan (sometimes called a carry trade). Your broker may have a much lower interest rate for borrowing in another currency like CHF. Say that is 1.5%. You can take a CHF loan, convert that to USD, and use the funds to invest in US stocks. However, you must now beat both the 1.5% margin interest as well as any forex rate changes. You also have to keep in mind the cost of conversion, which is more favorable to larger sums. For stable currencies like CHF, I've had good results for multi-year timeframes. However, if there is a big drop in USD value to the foreign currency, your loan repayment can be much bigger than you expected. Many people have done this with JPY due to its low interest rate.

A box spread is another way to take a loan, except it is not from your broker, but from the options market. This essentially gives you the best borrowing rate that your broker will never beat, but you will need to trade options which can be quite complicated if you are new to them. [This blog post](https://thefinancebuff.com/short-box-spread-vs-margin-loan-fidelity.html) describes the process. I created [this video](https://www.youtube.com/watch?v=mSmY9HNzeAo) and [slides](https://docs.google.com/presentation/d/1-CDrMKt7snfninR7kycAI7HIv2nGCyVBD-ozjVqwVUc/edit?slide=id.p#slide=id.p) going into the mechanics.