Some Random Guy Online
No Result
View All Result
  • Home
  • Everything About Finance
  • Marketing Ideas
  • Cryptocurrency
  • Contact Us
  • US Company Incorporation
  • Home
  • Everything About Finance
  • Marketing Ideas
  • Cryptocurrency
  • Contact Us
  • US Company Incorporation
No Result
View All Result
HealthNews
No Result
View All Result
Home Everything About Finance

Portfolio Closer Look

Sarah Barnett by Sarah Barnett
January 24, 2022
in Everything About Finance
0
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

Now that I”m back to posting more regularly, I thought it would be interesting to give you guys a detailed look at our portfolio. I already touched on our holdings in a previous post. This time around, however, I’ll provide a breakdown of all of our investment accounts. I’ll also talk about how our portfolio came to be as well as some of my thoughts and plans going forward.

Risk Tolerance and Asset Allocation

Before diving into the specifics of the SRGO portfolio, I wanted to talk about our asset allocation. Based on our risk tolerance, financial goals, and investment style, we have decided on the following allocation:

Overall: 75% stocks, 25% bonds
International: 20-30% of stocks (I know, kind of a broad range)
Small Cap Value: 5% of portfolio
REIT: 5% of portfolio

Our Portfolio

Here’s a snapshot of our entire investment. Sorry that it’s a bit blurry, but if you click on the table it will expand to a much clearer image.

SRGO, blurry edition
Breakdown of our stock holdings

 

How are we in relation to our targets?

Overall: 76% stocks, 24% bonds (75/25)
International: 21% of stocks (20-30% of stocks)
Small Cap Value: 3% of portfolio (5%)
REIT: 5% of portfolio (5%)
Mid Cap: Where did this come from? More on that later.

Things I Like

Low Fees

Since the majority of our holdings are index funds, our fees are pretty low with an overall weighted expense ratio of 0.05%. That’s pretty darn cheap.

Diversification

Another benefit of investing in index funds is the diversification that they provide. I don’t have all my eggs in one basket, so to speak. I do have a collection of individual stocks that were in my wife’s old brokerage account, but they make up just 8.5% of our portfolio.

Tax Efficiency

Overall, I think I have things in the right location for tax efficiency. At least, for the most part. There are a few tax inefficient funds where they shouldn’t be, however. For instance, we have two actively managed funds (Invesco Comstock and Lord Abbett Mid Cap) and dividend-generating individual stocks in our taxable account.

Things I Don’t Like

Complexity

I’m a fan of keeping thinks simple, but our portfolio currently is anything but. We have a total of 15 different holdings along with a collection of individual stocks. We also have six investment accounts spread across four different financial institutions.

Too Much in Pre-Tax Accounts

As it stands, we have almost two-thirds of our investments in pre-tax accounts. This isn’t too much of an issue now since we are many years from retirement and are focusing on paying off my student loans. I would, however, want to have a more even distribution of pre-tax, after-tax, and tax-free monies as we get closer to retirement.

WTF Holdings

I’m not a fan of our Invesco Comstock and Lord Abbett Mid Cap holdings. They have high expense ratios, are actively managed, and are tax-inefficient. While they make up a very small percentage of our portfolio (0.5% and 0.7% respectively), they annoy me nonetheless. Selling these investments is not as straightforward as it may seem. Their cost bases are unknown, so selling them would be treated as a $0 cost-basis transaction. For now, we’re just letting these ride. At some point in the future, however, they are getting kicked to the curb.

Things I’m Neutral About

Roth IRA Holdings

LifeStrategy Growth Fund is an all-in-one fund from Vanguard. It basically is set at an 80/20 stock to bond asset allocation with a mix of domestic and international stocks. I kind of like this fund in our Roth IRA because it automatically rebalances itself, but I may exchange it for some other fund in the future.

Individual Stocks

We’re just letting these ride with automatic dividend reinvestments. There is a bit of tax drag given they are in our brokerage account, but at least they’re taxed at the qualified dividend rate.

Final Thoughts

Overall, I think our portfolio is pretty solid. It is a bit too complicated for my taste with 15 different investments spread across several accounts. On the other hand, we have an asset allocation that we can stick with, we’re pretty diversified, and our investment fees are pretty low.

Advertisement Banner
Previous Post

Save More For Retirement With an HSA

Next Post

Friday Blog Roundup – 10/6/17

Sarah Barnett

Sarah Barnett

Next Post
Friday Blog Roundup – 10/6/17

Friday Blog Roundup – 10/6/17

Recommended

Mutual Funds And ETFs

5 months ago
Blog Update: Six Month Blogiversary

Blog Update: Six Month Blogiversary

5 months ago

Don't Miss

How To Register A Company

How To Register A Company

April 4, 2022
Stripe Atlas Opens US Incorporation Program To US Business Owners

Stripe Atlas Opens US Incorporation Program To US Business Owners

April 4, 2022
The Basics Of Company Incorporation

The Basics Of Company Incorporation

April 4, 2022
Why You Should Choose A Registered Agent For Your LLC

Why You Should Choose A Registered Agent For Your LLC

April 4, 2022
Some Random Guy Online

Definition of inclusive finance: inclusive finance , often confused with “microfinance”, concerns financial products and services intended to help low-income populations.

Follow us

Categories

  • Cryptocurrency
  • Everything About Finance
  • Marketing Ideas
  • US Company Incorporation

Recent Posts

  • How To Register A Company
  • Stripe Atlas Opens US Incorporation Program To US Business Owners
  • The Basics Of Company Incorporation
  • Why You Should Choose A Registered Agent For Your LLC
  • How To Register A Company In The USA
  • Home
  • About us
  • Everything About Finance
  • Marketing Ideas
  • Cryptocurrency
  • Contact Us
  • Privacy Policy
  • Terms And Conditions

© 2021 Copyrights. All Rights Reserved By Some Random Guy Online

No Result
View All Result
  • Home
  • Everything About Finance
  • Marketing Ideas
  • Cryptocurrency
  • Contact Us
  • US Company Incorporation

© 2021 Copyrights. All Rights Reserved By Some Random Guy Online