Warning: by no mean my portfolio is a well rounded portfolio that would fit for everyone. It fits for me that this particular time. And I will continue to use this kind of strategy to invest and reinvest.
I will update the Well Rounded Portfolio once a month.
Step 1: Determining the Appropriate Asset Allocation for You
For me, right now I’d like to hold equities. But if I ever want to hold bond again, I’d go with municipal bond to avoid taxes ramification. So I’d fall into the aggressive investor category.
Stock Return:
S&P Return:
Bond Return:
*As you can see the interest rate has steadily decline over the years. Recently, there is a currency war among the developed countries and economic powerhouse – EU, Canada, Australia, China, Japan vs. the US. *
**Even with the mass decline in stock price. You can see over the long hall, stocks seem to do a bit better than bond.**
Conservative Vs. Aggressive Investors
VS 
Step 2: Achieving the Portfolio Designed in Step 1
- Stock – See my watch list
- Bond Picking – as of now, I’ve moved away from bond. Just holding cash position or stock
- Mutual Funds – only in my 401K for now
- Exchange-Traded Funds (ETFs) – I’m looking to add some but haven’t seen the oppotunity yet
Step 3: Reassessing Portfolio Weightings
- Analyze and rebalance it periodically because market movements may cause your initial weightings to change.
- Assess your portfolio’s actual asset allocation, quantitatively categorize the investments and determine their values’ proportion to the whole.
- Determine which of your positions are overweighted and underweighted.
Step 4: Rebalancing Strategically
Take a moment to consider the tax implications of readjusting your portfolio. Perhaps your investment in growth stocks has appreciated strongly over the past year, but if you were to sell all of your equity positions to rebalance your portfolio, you may incur significant capital gains taxes.
Remember the Importance of Diversification.
- It is vital that you remember to maintain your diversification above all else.
- It is not enough simply to own securities from each asset class; you must also diversify within each class.
- Ensure that your holdings within a given asset class are spread across an array of subclasses and industry sectors.
The Bottom Line
- Well-diversified portfolio is your best bet for consistent long-term growth of your investments.
- It protects your assets from the risks of large declines and structural changes in the economy over time.
- Monitor the diversification of your portfolio, making adjustments when necessary, and you will greatly increase your chances of long-term financial success.
As of 5/17/15, I hold 22 position as follow in my taxable account:
|
Symbol | Trade | Shares | Cost | Last | Original | Market | Unrealized Gain/ | Unrealized Gain/ | Today’s | Today’s | Change | Price/ | |
| Date1 | Basis | Price ($) | Cost | Value | Loss ($)1 | Loss (%)1 | Change ($)1 | Change (%) | in Price | Earnings per Share (P/E) | ||||
| Common Stock | ||||||||||||||
| ALIBABA GRP HOLDING ADR | BABA | 9/22/2014 | 100 | $90.01 | $85.08 | $9,000.59 | $8,508.00 | ($492.59) | -5.47% | ($60.00) | -0.70% | ▼(0.6) | $52.71 | |
| AT & T INC | T | 3/6/2015 | 30 | $33.48 | $35.91 | $1,004.40 | $1,077.30 | $72.90 | 7.26% | $26.10 | 2.48% | ▲0.87 | $32.65 | |
| BANK MONTREAL QUEBEC | BMO | 1/7/2015 | 12 | $67.40 | $60.88 | $808.80 | $730.56 | ($78.24) | -9.67% | $8.28 | 1.15% | ▲0.69 | $12.26 | |
| BANK OF AMERICA CORP | BAC |
|
5,677.00 | $17.04 | $17.67 | $93,141.21 | $100,312.59 | $3,565.66 | 3.69% | $1,135.40 | 1.15% | ▲0.2 | $25.24 | |
| BAXTER INTERNATIONAL INC | BAX | 5/13/2015 | 10 | $68.16 | $70.67 | $681.60 | $706.70 | $25.10 | 3.68% | $6.40 | 0.91% | ▲0.64 | $16.32 | |
| CAPITAL ONE FINANCIAL | COF | 4/27/2015 | 10 | $81.05 | $89.38 | $810.50 | $893.80 | $83.30 | 10.28% | $0.60 | 0.07% | ▲0.06 | $11.71 | |
| CATERPILLAR INC | CAT | 3/6/2015 | 10 | $80.66 | $88.45 | $806.57 | $884.50 | $77.93 | 9.66% | $1.80 | 0.20% | ▲0.18 | $14.18 | |
| CITIGROUP INC NEW | C | 3/4/2015 | 100 | $53.56 | $57.39 | $5,356.49 | $5,739.00 | $382.51 | 7.14% | $44.00 | 0.77% | ▲0.44 | $21.49 | |
| DEERE & CO | DE | 3/6/2015 | 10 | $90.02 | $93.68 | $900.20 | $936.80 | $36.60 | 4.07% | $1.30 | 0.14% | ▲0.13 | $12.34 | |
| DIAGEO PLC | DEO | 2/13/2015 | 15 | $113.72 | $121.95 | $1,705.80 | $1,829.25 | $123.45 | 7.24% | $30.00 | 1.67% | ▲2 | $34.16 | |
| DOMINION RES INC VA NEW | D | 3/4/2015 | 100 | $70.45 | $67.56 | $7,045.48 | $6,756.00 | ($289.48) | -4.11% | ($70.00) | -1.03% | ▼(0.7) | $27.02 | |
| FORD MOTOR COMPANY | F |
|
53 | $15.24 | $15.29 | $807.55 | $810.37 | $2.82 | 0.35% | $8.48 | 1.06% | ▲0.16 | $19.86 | |
| GENERAL ELECTRIC COMPANY | GE | 3/9/2015 | 50 | $25.52 | $27.55 | $1,276.00 | $1,377.50 | $101.50 | 7.96% | $6.50 | 0.47% | ▲0.13 | N/A | |
| JPMORGAN CHASE & CO | JPM | 4/27/2015 | 10 | $62.96 | $69.75 | $629.60 | $697.50 | $67.90 | 10.79% | $7.90 | 1.15% | ▲0.79 | $12.78 | |
| KINDER MORGAN INC DEL | KMI | 5/29/2015 | 10 | $41.54 | $39.43 | $415.40 | $394.30 | ($21.10) | -5.08% | ($2.20) | -0.56% | ▼(0.22) | $44.30 | |
| LUMBER LIQUIDATORS HLDGS | LL | 4/29/2015 | 43 | $27.03 | $21.60 | $1,162.29 | $928.80 | ($233.49) | -20.09% | $53.32 | 6.09% | ▲1.24 | $14.12 | |
| PRINCIPAL FINANCIAL | PFG | 4/27/2015 | 10 | $52.01 | $53.29 | $520.05 | $532.90 | $12.85 | 2.47% | $2.70 | 0.51% | ▲0.27 | $13.00 | |
| PROCTER & GAMBLE CO | PG | 5/29/2015 | 10 | $78.35 | $79.79 | $783.50 | $797.90 | $14.40 | 1.84% | ($6.60) | -0.82% | ▼(0.66) | $25.33 | |
| REALTY INCOME CORP | O | 3/6/2015 | 50 | $48.83 | $45.11 | $2,441.50 | $2,255.50 | ($186.00) | -7.62% | ($19.00) | -0.84% | ▼(0.38) | $41.77 | |
| TWENTY-FIRST CENTY | FOXA | 4/27/2015 | 10 | $34.81 | $33.42 | $348.10 | $334.20 | ($13.90) | -3.99% | $1.50 | 0.45% | ▲0.15 | $7.83 | |
| VERIZON COMMUNICATIONS | VZ | 9/29/2014 | 200 | $49.50 | $47.77 | $9,899.22 | $9,554.00 | ($345.22) | -3.49% | $48.00 | 0.51% | ▲0.24 | $20.07 | |
| VISA INC CLASS A | V |
|
60 | $67.42 | $69.42 | $4,045.07 | $4,165.20 | $120.13 | 2.97% | $19.80 | 0.48% | ▲0.33 | $31.06 | |
| WAL-MART STORES INC | WMT |
|
60 | $77.73 | $72.57 | $4,664.00 | $4,354.20 | ($309.80) | -6.64% | ($13.20) | -0.30% | ▼(0.22) | $14.60 | |
| WELLS FARGO COMPANY | WFC |
|
530 | $51.22 | $57.89 | $27,148.20 | $30,681.70 | $3,533.50 | 13.02% | ($10.60) | -0.04% | ▼(0.02) | $14.15 | |
| Total Stocks | $175,402.12 | $185,258.57 | $6,250.73 | 3.49% | ||||||||||
Great mix, but I would advise an ETF. You may need to switch stocks in the future, and decide not to due to tax implications.
Also, your stocks are down, and the S&P is up. Why not just own the S&P. Most financial managers cant beat it, all you have to do to match it is buy it. At Fidelity, IVV is a free trade. Buy as much, or as little, as you want.
Thank you for commenting. I have s&p 500 70%, mutual fund housing index 15% and 15% foreign (Europe). I’ve been checking out your recommendation from your last comment. I haven’t pulled the trigger yet.
Wow, you got a lot of money in bank of america and banks in general. Not sure if that a good idea! From your chart, it seem S&P 500 index fund is the way to go, but market is at an all time high so I would dollar cost average into it or wait for it to go down and put a large chunk in. That’s what I am doing, holding cash and waiting patiently for something bad to spook the market. Just a matter of time.
Hi,
I recently started a blog. I would like for you to check out my portfolio if you get the time.
m
any feedback is appreciated.
Great portfolio.. check out my blog out too!