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Contributor ○○○

Change of Direction with mlott1 Portfolio

After a lot of thought, and of course watching the coronavirus situation, I've decided to pull in my horns.  I have sell orders in for my Franklin Utilities and American Funds Capital Income Builder funds.  Should be modest gains in each.  I have simply become uneasy with my equity exposure and want to trim it back a bit.  

While I am aware of single stock risk, I intend on not only keeping my KO shares but buying more, unless it goes on a tear to the upside.  I like the company and the quarterly dividend is good.

I have also reinitiated a position in PONAX, after having had a change to see how it acted during the wide swings in bond funds back in March.

I am keeping and adding to Franklin Income and Fidelity Conservative Income Bond fund. 

I still have my Redneck Bank online savings account.

I also started buying Series I Savings Bonds.

My three mutual funds all pay dividends monthly, and while I currently reinvest all distributions, it is very possible that in the near future I will need a little extra monthly income.  Obviously, not a great time to be looking for dividends, but PONAX and Franklin Income both put a heavy emphasis on current income.  FCONX, being an ultra-short bond fund, has a much smaller monthly dividend.

I'm directing current and future investment money mainly into the more conservative items.  I don't know why, but after not worrying much about the coronavirus, I am becoming very uneasy.

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Participant ○○

Re: Change of Direction with mlott1 Portfolio

You have described changes in holdings but it's not clear how much risk, or how much income-generating components you have.

Could you please provide at least a simple summary of percentages in "stocks, bonds, real estate" or whatever broad breakdown seems sensible to you?

Thank you.

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Participant ○○○

Re: Change of Direction with mlott1 Portfolio

I hear you. I don't feel comfortable with anything these days. Wall St and Main St are completely disconnected. It's a WEIRD year. A bizarre combination of 1968 + 1999.

I see absolutely NO good INVESTMENT assets. SPECULATORS seem like they're having fun. I won't play that game.

Regarding our retirement port. I dislike our stock allocation. I hate our FI allocation. But we will stick with it. No other choice.

 

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Frequent Contributor

Re: Change of Direction with mlott1 Portfolio

It is not time for complacency for sure; I am being conservative but still stay the course.

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Participant ○○○

Re: Change of Direction with mlott1 Portfolio

Nothing that is a buy in my book, but to buy anything significant now, I'll have to sell something - I've an overall 65% stocks, 33% bonds, and only 2% in cash. If the market does go down, my bonds (LT Treasuries and BIV, plus whatever PRWCX and VWENX hold) should at least hold steady.  If the market continues to defy gravity and common sense, I've enough in stocks to enjoy the ride.  Either way, I'll rebalance when I'm 5% off the 65:35 allocation.  Until then - steady as she goes.

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Frequent Contributor

Re: Change of Direction with mlott1 Portfolio

Typing mlott1 in Search brings up previous related threads in different M* Forums. Why not update a single running thread so that posters can keep track of what you are doing?

YBB
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Contributor ○○○

Re: Change of Direction with mlott1 Portfolio

@yogibearbull  Your suggestion makes a lot of sense, which is probably why it never occurred to me.  I'll try to remember to just use this one thread going forward.

Hopefully I won't have too many portfolio changes, at least major ones.  I did like what I had set up previously, but this coronavirus thing has got me rattled.  And I don't actually need to be taking a lot of chances, since my retirement annuity and social security is enough to meet my monthly income needs.  

The three funds that I have, PONAX, Franklin Income, and FCONX (Fidelity ultrashort bond fund) all pay out monthly, and I like the idea of being able to turn that into a small third income stream.  It's looking more like I might need to do that, in Sep I start paying Medicare Part B premiums, and I will be keeping my BC/BS Basic health insurance, which is somewhere around $160 per month.  I am also encountering some significant medical problems, and co-pays and other charges are already starting.  Nothing overwhelming so far, knock on wood.

As for the Series I Savings Bonds, I will buy a small bond from time to time, but I do not anticipate putting a lot of money into them, at least right now.  I actually look at these bonds as more of an insurance policy, as they are payable on death (POD) to someone that I care about.  

To keep my simple portfolio simple, I also cashed in my Redneck Bank online savings account.  I'll just use my credit union account, and with the amounts involved, it won't make a major difference.  

And lastly, my Coca-Cola stock.  I make no bones that this is partly an emotional investment.  With this stock, I actually feel like I am a part-owner of the company, and the price fluctuations don't really bother me.  And I do try to pick off a little here and there when the price backs off and I have some money.  

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