Well Rounded Portfolio

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

1. Stock – See my watch list
2. Bond Picking – as of now, I’ve moved away from bond. Just holding cash position or stock
3. Mutual Funds – only in my 401K for now
4. 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:

 

Description Sorted Ascending	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	$88.46	$9,000.59	$8,846.00	($154.59)	-1.72%	$6.00	0.07%	▲0.06	$49.09
AT & T INC	T	3/6/2015	30	$33.48	$34.33	$1,004.40	$1,029.90	$25.50	2.54%	$6.00	0.59%	▲0.2	$31.21
BANK MONTREAL QUEBEC	BMO	1/7/2015	12	$67.40	$64.38	$808.80	$772.56	($36.24)	-4.48%	($2.04)	-0.26%	▼(0.17)	$12.87
BANK OF AMERICA CORP	BAC	Detailw	5,677.00	$17.04	$16.35	$93,141.21	$92,818.95	($3,927.98)	-4.06%	($965.09)	-1.03%	▼(0.17)	$23.36
BAXTER INTERNATIONAL INC	BAX	5/13/2015	10	$68.16	$69.36	$681.60	$693.60	$12.00	1.76%	$3.20	0.46%	▲0.32	$16.02
CAPITAL ONE FINANCIAL	COF	4/27/2015	10	$81.05	$84.03	$810.50	$840.30	$29.80	3.68%	($4.40)	-0.52%	▼(0.44)	$11.01
CATERPILLAR INC	CAT	3/6/2015	10	$80.66	$88.43	$806.57	$884.30	$77.73	9.64%	($3.10)	-0.35%	▼(0.31)	$14.17
CITIGROUP INC NEW	C	3/4/2015	100	$53.56	$54.24	$5,356.49	$5,424.00	$67.51	1.26%	($36.00)	-0.66%	▼(0.36)	$20.32
DEERE & CO	DE	3/6/2015	10	$90.02	$89.13	$900.20	$891.30	($8.90)	-0.99%	($30.80)	-3.34%	▼(3.08)	$10.86
DIAGEO PLC	DEO	2/13/2015	15	$113.72	$112.91	$1,705.80	$1,693.65	($12.15)	-0.71%	$4.50	0.27%	▲0.3	$31.63
DOMINION RES INC VA NEW	D	3/4/2015	100	$70.45	$72.19	$7,045.48	$7,219.00	$173.52	2.46%	$59.00	0.82%	▲0.59	$28.88
FORD MOTOR COMPANY	F	4/30/2015	3	$15.85	$15.48	$47.55	$46.44	($1.11)	-2.33%	$0.63	1.38%	▲0.21	$20.10
GENERAL ELECTRIC COMPANY	GE	3/9/2015	50	$25.52	$27.27	$1,276.00	$1,363.50	$87.50	6.86%	($7.00)	-0.51%	▼(0.14)	N/A
JPMORGAN CHASE & CO	JPM	4/27/2015	10	$62.96	$65.88	$629.60	$658.80	$29.20	4.64%	($1.70)	-0.26%	▼(0.17)	$12.07
LUMBER LIQUIDATORS HLDGS	LL	4/29/2015	43	$27.03	$26.26	$1,162.29	$1,129.18	($33.11)	-2.85%	($17.63)	-1.54%	▼(0.41)	$17.16
PRINCIPAL FINANCIAL	PFG	4/27/2015	10	$52.01	$51.31	$520.05	$513.10	($6.95)	-1.34%	($6.80)	-1.31%	▼(0.68)	$12.52
REALTY INCOME CORP	O	3/6/2015	50	$48.83	$47.90	$2,441.50	$2,395.00	($46.50)	-1.91%	$29.50	1.25%	▲0.59	$44.35
TWENTY-FIRST CENTY	FOXA	4/27/2015	10	$34.81	$33.99	$348.10	$339.90	($8.20)	-2.36%	$6.60	1.98%	▲0.66	$7.96
VERIZON COMMUNICATIONS	VZ	9/29/2014	200	$49.50	$49.79	$9,899.22	$9,958.00	$58.78	0.59%	($36.00)	-0.36%	▼(0.18)	$20.92
VISA INC CLASS A	V	Detail	60	$67.42	$69.57	$4,045.07	$4,174.20	$129.13	3.19%	($25.80)	-0.61%	▼(0.43)	$31.13
WAL-MART STORES INC	WMT	3/6/2015	20	$82.63	$79.24	$1,652.60	$1,584.80	($67.80)	-4.10%	$10.40	0.66%	▲0.52	$15.69
WELLS FARGO COMPANY	WFC	Detail	530	$51.22	$55.52	$27,148.20	$29,425.60	$2,277.40	8.39%	($275.60)	-0.93%	▼(0.52)	$13.57
Total Stocks						$170,431.82	$172,702.08	$1,335.46	0.77%	($1,2