1. Home
  2. Financial Planning
  3. What Would You Do With This Portfolio?

What Would You Do With This Portfolio?

I am looking for some constructive criticism of my current portfolio. I am mid-40's, wife is on disability and have a son in college. We have large medical bills and will not be able to add much to our current stash. Is Consolidation a good idea? Overweighted/underweighted anywhere? I would appreciate your suggestions/guidance/comments.

Thanks

15% S&P 500 Index Funds 8.0% Russell 2000 (IWO) 6.5% MidCap SPDR (MDY) 6.0% Rydex Leisure Fund (RYLIX) 5.5% Energy SPDR (XLE) 5.0% Financial SPDR (XLF) 4.5% Biotech SPDR (IBB) 4.5% Telecom SPDR (IYX) 4.5% Apple Computer (AAPL) 4.5% Growth Fund of America (AGTHX) 4.5% Nasdaq Index (QQQQ) 4.5% Anheuser Busch (BUD) 4.5% Home Depot (HD) 3.5% Applied Materials (AMAT) 3.5% Johnson & Johnson (JNJ) 3.5% Walgreens (WAG) 3.0% General Electric (GE) 3.0% Intel (INTC) 3.0% American Eagle (AEOS) 3.0% Microsoft (MSFT)

Injun Joe

Reply to
Injun Joe
Loading thread data ...

It depends on why you bought all that stuff. Are you good at picking stocks and sector funds that do better than SPY or VTI while you hold them? One thing to ask is whether this stuff is being held in an account that has low transaction fees. If you get advice or the yen to move stuff around, make sure the moving is as cheap as possible. It's not too badly over/underweighted as far as equities are concerned so I would just watch each of them and when you either cull a loser, or take profits from a winner, I would suggest putting the money in VTI and leaving it as long as (and when) you want to be in the market. The closer you are to a Buffett, the more you should concentrate on a few high-probability winners. The closer you are to not knowing anything (like me), the more you should diversify and then don't move it. SPY or VTI will efficiently give you market returns by definition. Most professional fund managers don't do as well as broad index funds over the long term... Joe

PS: Is this in a taxable or tax-deferred account? Is this all for long-term growth, or would you have to tap this for emergency (or planned) purposes within 5 years or so? Is this *all* your investments?

Reply to
joe.weinstein

How were the stocks and sector funds chosen? Where are the bonds and other asset classes, like REITs? Is it a taxable or tax-deferred account?

I suggest entering your portfolio in RiskGrades

formatting link
(it is free) to get an assessment of youroverall portfolio. Unless you have reason to believe that you are goodat investing at sector funds and individual stocks, or you arepractising "tax loss harvesting" in a taxable account, or you aresitting on large unrealized short-term capital gains, it may beadvisable to sell all the sector funds and individual stocks and plunkthem in a Wilshire 5000 index fund.

Reply to
beliavsky

Thanks for the input. To answer your questions....I think I am reasonably good at picking stocks but time is going to become an issue. I am not going to have the time to babysit my holdings liek I would like to. Yes, this is all that we own and it is in a combination of taxable accounts and Roth/Regular IRA's.

Reply to
Injun Joe

Two comments about your portfolio: 1) It appears to have zero international exposure and 2) It is a bit heavy in tech stocks (they are about 30% of your portfolio under a broad definition of tech that includes IBB and IYX).

I'd lighten up on the tech, and add foreign holdings. This should improve your diversification and give you some protection if U.S. markets underperform over the next few decades. Vanguard's Total International Stock Index Fund (VGTSX) would be a great way to do this. The index's expense ratio is .31% and its holding includes stocks in both developed and emerging markets.

good luck,

Tom B.

Reply to
Tom B.

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.