Tuesday, April 10, 2018

An Example of a Retirement Investment Portfolio

Just for fun, I thought I'd share my current portfolio. Note that it could change on a moment's notice.
This is portfolio for a retired person of 60 years old. You can see that, with a 42% allocation to short term bond funds (with a 2 to 3 year ave duration and yields about 2.5%), that I'm risk averse.

My average dividend yield is about 5%. Many of the positions below were recently added back to my portfolio based on my assumption that interest rates have peaked and that the world's economic growth is slowing and that will likely keep a lid on interest rates. If that assumption changes, my invested allocation will drop quickly.

I just added a small short position this morning on the equity market's euphoria over "conciliatory" words from China's president Xi. That position might change at any time.

Let me know if this kind of information is interesting to you.

I've indicated most positions using symbols. 

PositionAllocationDividend Yld
Cash5.63%1.06%
Short term Bond funds - VCSH, IGHG, EALDX41.80%2.66%
Stocks27.01%8.55%
Short Positions - SPY-2.82%
Net Long Stocks24.19%
Preferred Stock CEFs - FPE, HTD, FFC, DFP6.37%6.93%
BDCs - ARCC, TCPC, SUNS, PFLT3.07%9.31%
Commodities0.00%
Gold/Silver Mining Stocks/Commodities0.00%
Hedges0.00%
Treasury/Agg Bond/Govt Bonds - TLT8.43%2.55%
Muni Bond CEF Funds - AFB,KTF,BKN,MNP, VPV,BBN10.50%5.69%
Corp Bond Funds0.00%
100.00%
Stock Allocation
Consumer Discretionary0.00%
Industrials0.00%
MLPs - HMLP, PBFX, GMLP, KNOP, GLOP, MPLX7.96%9.12%
Healthcare/Pharma0.00%
Utilities - UTG, DUK, MO4.05%5.66%
Gas Dist Utilities0.00%
Telecom - T, VZ, BCE1.98%5.15%
Commodity Stocks - GGN0.59%
Financials/Banks0.00%
Tobacco0.69%
Oil/Gas- RDSA, TOT, BP2.40%5.00%
REITS - NRZ, RFI, WPC, VTR, EPR8.73%8.23%
Transports0.00%
Defense0.00%
Technology0.00%
Other Misc Equity0.00%
Tax Advantaged Equity Income Funds0.00%
International stocks 0.00%
26.40%

3 comments:

Anonymous said...

How do you feel about TIPS?

Doug said...

TIPS seem like a good idea. One could buy TIP --- which is an ETF and pays 2.5%

Or you can buy $10K I Bonds from Treasury Direct and it pays about the same or about 2.54%. It appears that you're limited to $10K per year.

(see https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm)

Doug said...

Shortly after I posted this blogpost, I added a full 17.5% short SPY position to lower my equity net long position to about 10% (27% - 17% = ~10% )