From February 6th (when the last portfolio update was published – see link below) to March 5th, the S&P500 index went up 6.8%.
My Money Blog – February 2010 Portfolio and Net Worth
During that time period, my net worth increased 8.16%. I am now only 4% off of my short term target net worth for this year. Almost there! Additionally, I have now contributed $4300 of the $5000 allowed for my Roth IRA.
Currently, 26% of my net worth is invested in fixed income instruments, and 74% is invested in equity. This is just off of my targets of 25% and 75%, respectively, for these categories.
While the overall percentages for these categories are looking good, a detailed look (table below) at the allocation breakdown reveals that I still have some room for improvement.
Remember: a red flag goes off if your current % allocation in a category is greater than +/- 5% off of the target allocation.
% Cash (money market target 5%) 12%
% non-inflat Bond Funds (target 15%) 15%
% TIPS Bonds (target 5%) 0%
% International Equity (Target 11%) 12%
% International Emerging Markets (Target 11%) 7%
% Domestic Large Cap (Target 8%) 30%
% Domestic Small Cap (Target 9%) 6%
% Domestic Small Cap Value (Target 13%) 6%
% Domestic Large Cap Value (Target 13%) 7%
% REIT (target 10%) 6%
In the past month, I’ve been working very hard to move money to my emerging market mutual fund account. The progress can been seen because I now have 7% of net worth in that category. This is a good thing!
Also, as mentioned before, I currently have a VERY large percentage of my portfolio in Domestic Large Cap stocks. This is due to the fact that I was contributing 100% of my 401k contributions purchase S&P500 index fund shares for 1.5 years. I am now moving towards allocating that money to international and bond funds.
My next move for the March/April time frame will be to do the following:
- $700 contribution to my Roth IRA for the Vanguard Emerging Markets Index Fund
- Since I can no longer invest in my tax-sheltered IRA, I now shift to contributing to my individual Vanguard mutual fund account and online high yield money market accounts. This is only because I have fulfilled all of the higher priority items on the My Money Blog – Account Hierarchy. I’m never going to let you all forget that hierarchy!
- Purchase an inflation adjusted bond mutual fund (TIPS)
- Begin contributing again to the small-cap value and large-cap value funds.
Keep on learning!
Jacob
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