Cemanuel 2022 Portfolio Thread

[cemanuel]

Rather than start a new thread whenever I post an update, such as monthly/quarterly, I thought I'd build one to carry through the year.

This is my real-world portfolio. I retired effective 12/31/21 and intend to live almost completely on it from now on. I have a couple of partnerships that provide me with a little income each year but the amount I receive is not consistent and doesn't figure in my budgeting. It's also much less than my dividend income - I call partnership income my retirement version of a Christmas Bonus.

As I type this I have two accounts; a Taxable Account and a Roth. Both were opened on March 8, 2017. I also have a 403b I will rollover to an IRA after February 19, 2022, my 59.5th birthday.

Account Goals

Taxable Account: Provide me with sustainable, growing, dividend income. I will use this account to completely fund my retirement. Based on my pre-retirement budgeting I should be able to cover about 80% of my expenses from dividend income. The other 20% will come from a combination of saved cash and periodic sales; at this time those sales will be AAPL and GOOGL shares. I won't be completely passive here but other than these sales expect to do little trading here. I'm reasonably happy with what I own though I'm sure that as I pursue my quest to become the longest-lived Human Being in the history of the planet   that some companies will run into problems. Total return/value is not a primary goal of this account but it's always nice to have.

Roth: Total Return account. However I mostly want to buy companies for it that I believe I can hold forever. I will do some trading, mainly shares around a core/long position. While its goal is not dividend income I expect most companies will pay dividends.

IRA: Once I get there it will also be a TR account, managed the same as the Roth. Right now I can only own Mutual Funds in it but this will change with the roll over.

I have a pretty large emergency fund - bigger than it needs to be actually but every time I think about, say, cutting it in half, I don't.

I don't give investing advice. I'm not that smart. But I don't mind tossing out what I do and letting people take from it what may be useful for them. Questions are welcome about anything except dollar amounts.

I've been blogging on Seeking Alpha since August, 2018. I have 129 posts. Supposedly blogs are going away but for now they're still up. In any case, if you have access, these contain far more information than anyone would likely ever want about my investing, portfolio management, retirement planning, etc.: https://seekingalpha.com/user/48196727/i...instablogs

As of 1/1/22 the three accounts - Taxable, Roth, 403b - make up the following proportion of my total stock/fund investments:

• Taxable Account: 63.15%
  
• Roth: 2.15%
  
• 403b: 34.69%
  

Once I do the rollover I'll manage the Roth and IRA similarly and will mostly report on them as if they are a single account. As they aren't strictly DG accounts I will try to not talk much about them here despite my enthusiasm over, since I won't need to touch them for 13 years, being able to invest like I'm young again.

Here are my Taxable and Roth accounts as of 1/1/22, sorted by the amount a stock makes up of its respective account.

   

   

Happy New Year and Happy Investing Everyone!

[cemanuel]

Forgot to include my stocks by sector. This is for my taxable account alone and from Fidelity. I don't do a lot with sectors when I invest but do want to be aware of them.

1. 25% - Information Technology
   
2. 24% - Health Care
   
3. 13% - Industrials
   
4. 11% - Consumer Staples
   
5. 10% - Communication Services
   
6. 7% - Consumer Discretionary
   
7. 5% - Materials
   
8. 4% - Utilities
   

[ken-do-nim]

Is there any rhyme or reason to what's in the Taxable vs. what's in the ROTH? I struggled with this question all of last year myself. For instance I notice you have T, LMT, ABBV, and GOOGL in both.

[cemanuel]

(01-03-2022, 07:01 PM)ken-do-nim Wrote: Is there any rhyme or reason to what's in the Taxable vs. what's in the ROTH?  I struggled with this question all of last year myself.  For instance I notice you have T, LMT, ABBV, and GOOGL in both.

Taxable Account is for Dividend Income and I'll be living off it. The Roth is Total Return and I should never need to touch it.

T still in the Roth is strictly because of the media spin-off. Though I could change my mind and sell, particularly if it gets up to about $28.

[ken-do-nim]

LMT is up just 37% in the past 5 years. Great dividend, but why put it in a total return account?

[cemanuel]

(01-04-2022, 07:12 AM)ken-do-nim Wrote: LMT is up just 37% in the past 5 years.  Great dividend, but why put it in a total return account?

Revenues are growing over 10% annually. I don't get too caught up with whether something's a market darling or scoundrel. At some point the market will like it again. Or not. In the case of LMT I was able to pay $340 for a company I like that was trading at $400 not long before and dropped mainly on sentiment.

[fenders53]

(01-04-2022, 07:12 AM)ken-do-nim Wrote: LMT is up just 37% in the past 5 years.  Great dividend, but why put it in a total return account?

Diversification maybe?  Scroll back a little farther on defense stocks.  You probably don't like RTX much either?  What if I told you it was a 30 bagger since the mid 90s?  CSCO is about about a ZERO bagger for 20 years.  Do you still own it?  LMT has some decent long-term stats too.  I don't think LMT is going to have a great year (because they said so), but all our stocks can't have a great year every year if we are diversified, when the market is normal anyway.   

These are good discussions though.

[cemanuel]

With MO and PM paying Monday - and those already listed by Fidelity this morning, I can fool myself into thinking I actually got a pay raise for being retired! That'll change by the end of the month unfortunately, though ITW and OGE dividends are still coming. Still, it's a good day in dividend-land.

[fenders53]

Are your dividends spread out through the months? Mine are not which I don't see as a problem. I think I will take my withdrawals quarterly. I won't really know if I like that until I live it.

[rayray]

cemanuel,

regarding your fidelity issue

i checked mine and have 2-factor authentication log in and all accounts are in lock down mode--basically can transfer in but everything else is closely monitored

[rayray]

(01-04-2022, 12:46 PM)fenders53 Wrote:

(01-04-2022, 07:12 AM)ken-do-nim Wrote: LMT is up just 37% in the past 5 years.  Great dividend, but why put it in a total return account?

Diversification maybe?  Scroll back a little farther on defense stocks.  You probably don't like RTX much either?  What if I told you it was a 30 bagger since the mid 90s?  CSCO is about about a ZERO bagger for 20 years.  Do you still own it?  LMT has some decent long-term stats too.  I don't think LMT is going to have a great year (because they said so), but all our stocks can't have a great year every year if we are diversified, when the market is normal anyway.   

These are good discussions though.

stocks go up, stocks go down, some are winners and some are laggards--sometimes for years in either case

some of my laggards have been my bigger gainers this past year--with how wild the market has been as of late my portfolio has been hanging in there quite well

i always buy too early but established some good companies that will be adding years to come

my take is buying on the way up or on the way down--in the end what's the difference??

[fenders53]

(01-08-2022, 09:47 AM)rayray Wrote:

(01-04-2022, 12:46 PM)fenders53 Wrote:

(01-04-2022, 07:12 AM)ken-do-nim Wrote: LMT is up just 37% in the past 5 years.  Great dividend, but why put it in a total return account?

Diversification maybe?  Scroll back a little farther on defense stocks.  You probably don't like RTX much either?  What if I told you it was a 30 bagger since the mid 90s?  CSCO is about about a ZERO bagger for 20 years.  Do you still own it?  LMT has some decent long-term stats too.  I don't think LMT is going to have a great year (because they said so), but all our stocks can't have a great year every year if we are diversified, when the market is normal anyway.   

These are good discussions though.

stocks go up, stocks go down, some are winners and some are laggards--sometimes for years in either case

some of my laggards have been my bigger gainers this past year--with how wild the market has been as of late my portfolio has been hanging in there quite well

i always buy too early but established some good companies that will be adding years to come

my take is buying on the way up or on the way down--in the end what's the difference??

That depends on whether the final destination is zero.    Usually they aren't though and you are correct.  With a long enough hold period it generally doesn't matter much if you are buying quality that isn't extremely overvalued.  Nobody will ever convince me buying more CSCO, INTC and PFE was a good idea in 1999.  I may not live to be 110 lol.