Portfolio Status 2018

As we start 2018, it’s time for me to reset where my portfolio is. This follows from the idea of each part of the portfolio having a job. You will also see a trend of moving away from institutions and towards a people-focused perspective.

At the top of the portfolio are two retirement accounts — one a self-directed IRA and one a 401(k). The IRA is split between trend reversal dividend stocks and FAANG (Facebook, Apple, Amazon, Netflix, and Google) and BAT (Baidu, Alibaba, and Tencent) stocks. The 401(k) is all index funds. My choices there are high-fee, sector funds and low-fee index funds. I’ll choose the low-fee option almost every time.

Both of the equity funds have done exceptionally well this year. Since I am a macro-driven investor, I benchmark against a flat number.

I cannot reach my savings goal in those two funds alone. I save other funds into another equity account. This is guided by an investment writer that I have been following for years. He recently started an ETF guidance newsletter that seems promising.

The bond part of the portfolio has changed into two accounts. I have been allowing my Treasury bonds to mature and moving the proceeds into Lending Club and Fundrise. At Lending Club, I am focusing on well capitalized, short-term, credit card payoff loans, but in the medium risk profile. It has been hard to stay fully invested. At Fundrise, I have been involved in the long-term growth portfolio of real estate.

The cash part of the portfolio has changed from bank CDs to Prosper. Prosper is very similar to Lending Club, but I am not happy with the level of detail I have been receiving. Thus, my investment there is quite small and limited to well-capitalized, short-term, low-risk loans.

There are tax benefits to saving in the 401(k) and the IRA. Those two funds get the majority of my savings and that is causing an imbalance in the overall portfolio with respect to percent allocation by fund. The only way to resolve that is by increasing my saving percentage. I hope to have a quiet year regarding expenses and have plans to reach that savings goal.

The two retirement funds are designed to provide income at two phases of retirement — the 401(k) will be early and the IRA will be late. The other funds are all taxable and will be used as necessary.


Author: dmcnic

Educated as an economist, I now work as an Analytical Professional for a manufacturing firm. I have have a second job as a part-time lecturer at the University of Washington in Bothell. While all baseball interests me, the Mariners are my home town team. Married with one dog.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s