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Home > July 2014

July 2014

August 9th, 2014 at 06:49 pm

It's been a while since I posted my last update. Work was extremely busy, working 60 to 70 hours per week in a highly stressed environment, then switched my job in mid July. My new job isn't any easier in terms of the amount of work, at least initially.

March to July performance:

Cash & Savings: $87,194 => $105,322 (20.79%)
Foreign Currency: $37,717 => $37,717 (0%)
Domestic Brokerage: $223,675 => $219,837 (-1.72%)
International Brokerage: $229,632 => $234,918 (2.30%)
401(k): $125,620 => $130,807 (4.13%)
IRA: $42,534 > $43,022 (1.15%)
Roth IRA: $104,359 => $105,873 (1.45%)
Total Assets: $850,731 => $877,496 (3.15%)

The big jump in cash position is due to 3 factors - 1) my friend paid me back a $10,000 load I lent him a few years back; 2) signing bonus from my new job; 3) unused PTO days paid off by my previous employer.

In the last few months I also deployed cash in various accounts into a few mutual funds. My long term goal is to get out of stocks except the blue chips I bought years ago and just invest in funds but I may have gone into another extreme because now I have 17 stocks but 24 funds!

In August my old 401(k) account will be transferred to a brokerage firm that I already have several accounts with so there's some review I need to do after the transfer is over.. Also it just happened that my new company's 401(k) plan is also with the same brokerage firm so now I have an individual account, Rollover IRA, Roth IRA, old 401(k), and new 401(k) all with the same firm. Maybe this will make me one of their top once everything is said and done.

6 Responses to “July 2014”

  1. Rachael777 Says:
    1407610547

    Looks like you are in a very good psition. Good job saving and investing.

  2. snafu Says:
    1407615912

    I can't imagine keeping track of 24 MFs + stock in two brokerage accounts. I can understand having different funds in ROTH to support IRA but can't you simplify by having something like age appropriate allocation of Vanguard's Index, International and Corporate Bond MFs? With the USA exporting oil, a low cost Resource MF might be a tiny position if you don't hold stock in one of the big oil companies.

    In your shoes I'd see an independent CFP for an evaluation of holdings. Do you see a turnaround likely in losers or are the stocks down more than 7%? If there is a loss, can you take it against gains for income tax or is it in a retirement account? If it helps, we all have losers and it's best to forgive yourself, cut the loss and put the remaining sums in a MF that is making profit and will get you back your sum loss over time. Even Blue chips go down, do you have stop loss markers?

  3. Easy Cloud Says:
    1408161819

    You're right, it is impossible for me to manage 24 MFs. One of my losers will never come back and there are two stocks down by over 30% but one of them is in an IRA account with a 6.8% yield so to me there is no urgent need to sell that one.

    With all the decisions I do think seeking professional help is the right thing to do but wonder where to find a good one.

  4. snafu Says:
    1408197265

    Ask family, friends and colleagues whose opinions you value if they use a Certified Financial Planner they can recommend based on their personal experience. You will need to pay an independent their hourly rate. Alternately, use the internet to pull up each of your 24 MFs and print out the page of their 'top 10 holdings'. Separate those 24 pages in the categories that reflect the MF focus like Large capital, Small capital, Dividend, Balanced USA funds. International funds, European funds, Resource, Health, Technology. Bond funds, Income funds etc.

    Start with the fund with the largest value in your portfolio and see if the top holding are repeated in each category. Use a highlighter to emphasis the MER , The Wealthy Barber [Chilton] or any often mentioned on SA. Many of us follow the 'Couch Potato' theory buying units of Index Funds allocated by type suitable to our age and risk comfort zone.

  5. snafu Says:
    1408197504

    I guess I got timed-out as sentences vanished into cyberspace....sorry, trying to say...

    We keep touting Vanguard because it has such low MERs and once you meet it's criteria there is no fee. They have advisors and you need to ask the individual you speak to to outline their credentials. They can handle a transfer of your holdings so that your retirement portfolio doesn't accidentally get cashed out to cause tax and penalty headaches with IRS.

    It could be helpful to look at a couple of easy read books like The Automatic Millionaire or any often mentioned on SA. Many of us follow the 'Couch Potato' theory buying units of Index Funds allocated by type suitable to our age and risk comfort zone.

  6. Easy Cloud Says:
    1409843635

    Last Friday I went to see a financial adviser at Fidelity and he helped me decide what to invest in my new 401k plan. He also suggested me to sell funds in my old 401(k) plan, still in the holding status, then use the proceeds to buy funds that are available at Fidelity since there is no overlap.

    The adviser is also going to make a proposal to me to see if I'm interested in using their managed account service. I don't think I will do it if the fee is 1%, that is just too much.

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