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

Tom Nash•Jul 15, 2026

Summary

Tom outlines a comprehensive blueprint for new investors, emphasizing that investing is a repeatable skill rather than a game of luck. Tom argues that before buying any stocks, individuals must secure an emergency fund of 6 to 12 months and eliminate expensive debt to ensure they are never forced to sell during market downturns. Tom also stresses the importance of maximizing tax-advantaged accounts to capture "free money" from the government.

The core of Tom's strategy is a modified dollar-cost averaging (DCA) approach. Tom recommends investing only 50% of available monthly funds immediately, while keeping the other 50% as "dry powder" on the sidelines in low-risk assets like treasuries. When a target stock or index drops 20% or more from its annual high, Tom advises using that dry powder to double or triple the investment, effectively lowering the cost basis without trying to time the market perfectly.

Tom believes in a balanced portfolio structure:

S&P 500: Tom recommends allocating 50% of a portfolio to a broad market ETF tracking the S&P 500. Tom argues that this index is "undefeated" and provides an average annual return of 10% over long periods, making it the safest core holding for any investor. Tom suggests that missing just the 10 best days in the market over 20 years can cut returns in half, so staying invested is vital.

Palantir (PLTR): Tom mentions Palantir as a prime example of a high-quality business that he has successfully invested in over the past six years. Tom uses this stock to illustrate the importance of picking companies with strong management and fundamentals for a long-term horizon of 5 to 15 years. Tom argues that while the DCA system is powerful, it only works if the underlying company, like Palantir, is a legitimate business worth holding.

Nvidia (NVDA): Tom references Nvidia as an example of the "next big stock" that many beginners try to find. Tom argues that while finding winners like Nvidia is a part of investing, it should not overshadow the need for a structural framework. Tom suggests that individual stock picks should be limited to a maximum of 10 to ensure the investor can properly track financials and management just like an analyst would.

Mentioned Stocks

NVDA

Sentiment: BUY

Reasoning: Tom mentions Nvidia as a high-growth stock that represents the kind of 'big winner' beginners often chase. Tom states that while such stocks are important, they must be part of a broader strategy that includes fundamental analysis. Tom suggests that stocks like Nvidia can be part of the 10-stock individual portion of a portfolio, provided the investor understands the business.

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PLTR

Sentiment: BUY

Reasoning: Tom cites Palantir as a success story from his own past six years of investing to demonstrate that picking good companies is essential. Tom argues that his dollar-cost averaging strategy requires high-quality businesses like Palantir to be effective over the long term. Tom uses Palantir as a benchmark for the type of fundamentally sound company investors should look for when filling the individual stock portion of their portfolio.

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S&P500

Sentiment: BUYAction: RECOMMENDED

Reasoning: Tom states that the S&P 500 is an undefeated asset that has historically returned an average of 10% annually over long periods. Tom recommends putting 50% of any portfolio into this index because it is nearly impossible to beat over a 15-to-20-year timeframe. Tom argues that staying in the index is safer than sitting on the sidelines, which leads to a loss of purchasing power due to inflation.

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