Portfolio: What We Own and Why, Issue 1

Below is a representative snapshot of our portfolio and a brief explanation of how each item came to be part of the portfolio.

Individual Stocks held through Sharebuilder: 15%  – Both the wife and I had individual stock investments in Sharebuilder before we married.  Her first investment was in Starbucks in middle school.  My first was in college, investing across Boeing, Apple, Google, Exxon, and Chipotle.  We have used this account to invest in several other companies through the years, when the money is sitting around and we just feel like it.  We will invest in companies we feel may be undervalued, because we are such experts in stock valuations 😉 but due to the recent bull market we haven’t used this account for a while because it feels harder to spot an undervalued stock when they are all at 52 week highs

My IRA with Dodge and Cox: 16% in total: 4% Balanced Fund, 5% international fund, 3% Income Fund, 4% Stock Fund – My high school economics professor would endorse the Dodge and Cox balanced fund on probably a weekly basis.  His advice seemed in line with other financial advice I found, so once I started my summer job all my money went into an IRA with the Dodge and Cox Balanced Fund.  I’ve since diversified, perhaps too far to the conservative end, I’ll fix that eventually…

“Normal” taxed account with Dodge and Cox: 4% in total: 2% International Fund, 2% Balanced Fund – Basically the same as above, for investment money after IRA’s are fully funded

The Ms’ IRA with Vanguard: 11% in total: 6% Balanced Fund, 5% Stock Fund – I believe I got her to start this account after we met, and my then I had spent more time researching mutual funds, and Vanguard was the clear choice.

“Normal” Taxed account with Vanguard: 12% in total: 5% International, 2% Stock, 5% Wellington – again just another place to invest beyond our maxed IRA’s

Our current 401k’s:  19% – approximately 90% stock and 10% bond, contributing just a bit more than necessary to get a full match.  I’ll discuss my thoughts on 401k’s in a different post, but I’ll say we don’t max our 401k’s primarily because we don’t want to lock our money up in case we hit Financial Independence early (as we plan to).

Our Old 401k’s: 20% – approximately 90% stock and 10% bond, That’s a lot of our money sitting in old 401k’s.  They aren’t bad 401k’s with respect to fees or anything, but these are the investments I like the least, because I know we need to roll them into our IRAs.  However, for reasons I won’t go into much here (laziness), we haven’t yet.

Now, there are lots of things I like about the portfolio, and some I don’t.  While it is not as simple as many might like, I like the diversification it provides.  I know many accounts does not equal diversified.   I like having a good number of accounts to choose from for various “unscheduled” investing, and they provide some entertainment as I watch which accounts are performing better than others.  I also have some account work to do, as noted, to get my allocation in order and close some old accounts.

Maybe I’ll try to make this an annual update if I keep going that long so we can all see how my accounts vary and my changing thoughts on investments are implemented.

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One thought on “Portfolio: What We Own and Why, Issue 1

  1. Pingback: Financial To-Do List Success! Rolled Over Our 401k’s | LifeMoneyAndStuff

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