Happy 2012! Help me audit my CAPS-inspired nest eggs!
January 03, 2012
– Comments (7) |
RELATED TICKERS: NEST
, EGN
, EXAM
Greetings Fools,
Welp, it's that time again, time to wake up in a haze of spinning, trying hard to remember the details of excesses from days past, and take control of ones' future!!! (however timidly)
So, with that in mind, I was hoping the CAPS community could give old Neil here a bit of help by scrutinizing the toxic waste that is sitting my Roth IRA currently (and likely for many years to come).
The premise of my Roth: Social Security is a relic of the past, 401ks are lame (though I do have one), so this is pretty much it as far as retiring in style goes. I'm 29, and am looking to hold quality dividend growth stocks for the next 40 years or more. I dislike frequent trading - I'm bad at the timing, get stressed, and dislike the commissions costs. So, LTBH it is for me. I'm in grad school, desperately trying to improve my career prospects, but right now I earn 20k a year and live in Colorado's most expensive city, The People's Republic of Boulder.
Without further ado, let's get this show started:
BP - 25% of total
ESV - 16%
LXP - 12.5%
LLY - 10%
COP - 7.5%
INTC - 5%
cash - 4.5%
GLW - 4.2%
TOT - 4%
WNR - 3.2%
TNP - 2.5%
CVX - 2.5%
EMR - 2.3%
CATO - 0.7%
SMSI - 0.6%
As you can see, I'm VERY long on the market - 95.5% long in fact! I'm also very bullish on the following sectors: energy, tech, and healthcare. I see the developed world getting very old, very addicted to mobile tech, and very addicted to oil. And of course, the developing world is mostly following in our footsteps, as quickly as they can.
I think the average yield on my portfolio is around 3.5%, but many of these companies are growing dividends, so my yield on cost should rise nicely over the years. I reinvest dividends in almost all of the positions.
Most of my stocks have appreciated slightly since buying, a few have appreciated handsomely. The only real stinker of my portfolio so far has been TNP, which I've held very stubbornly and only recently sold some of my shares. It'll either rebound like crazy in a few years, or head to the toilet. I'm keeping a small position just because I'm interested to see how it plays out.
Some might argue that my position in BP is too large, but keep in mind my portfolio is only 3ish years old, so still quite small. I don't plan on adding to it much, but if the company can keep recovering well, and increases its dividend back to pre-spill levels, I'll be doing quite nicely.
My 401k is roughly half the size of my Roth IRA, but has been growing nicely thanks to the employer match. It's 81% domestic stocks, 16% international stocks, and 3% bonds, all in Vanguard mutual funds. My 401k is also very very long, given my view of the market and my age.
Any thoughts appreciated, and here's to a prosperous and interesting 2012!
Fool on,
Neil
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