A look back at 2018 and a look forward to 2019.

It is that time of the year again where we look back at the past year and reflect on the good times and the bad times. 2018 overall was a good year. I didn’t get hospitalized, I finally finished a degree, and I was able to grow my investment portfolio. There were some bad and I will talk about them shortly. First here is how more portfolio performed and grew over 2018.

2018 start$13,779.57
Addition$6,570.40
Dividend$1,966.94
2018 Finish$19,221.49
Gain$5,441.92

As you can see my portfolio grew from $13,779.57 to $19,221.49 thanks to $6570.40 in funds being added and earning $1,966.94 in dividends. Wait though, if you add up $13,779.57, $6570.40, and $1,966.94 you get $22,316.91 and not 19221.49! So what happened well, we all know what happened. During the 4th quarter we saw a huge drop in stock prices. While I had an exit plan and waited to see if stocks would recover I lost
over $3000.00 Once I sold all my shares and paid fees my lost came to $3095.42. I do not regret this action looking back even though stocks have rebounded in the last few weeks of January, as an investor I have to think about now not what or could happen in the future.

I do not blame how my portfolio was constructed. I know it was very aggressive portfolio and I knew it would have huge swings in prices. The problem with this I didn’t want to have to watch my portfolio every day to see if I need to sell or if it was a great time to buy. This lead me to wanted to create a portfolio that was still aggressive but there was more order to the chaos. So after a few weeks of looking at stocks, mutual funds, and ETFs I have created a portfolio that is 25% bonds, and 75% stocks. As you can see most of my bonds concentrate on US companies with some coming from foreign. With my stock I chose to have 15% of my holdings be made up of foreign stocks while 60% is made up of US stocks. I thought it was a good idea to make sure my holdings was well balanced across all markets.

I have 2 stocks, UNIT and SUN, and a mix of ETFs and Mutual Funds. While the ETFs have a very low fee the Mutual Funds fees are pretty high so I will keep an eye on them to how much they eat into my dividend throughout the year. My current dividend yield is not as aggressive as my 100% stock portfolio which was mainly concentrated on REITS that had high yield. As of this written my yield is 7.17% compared to 10.92% of my old portfolio. I am hoping I make up the difference by investing in capital growth ETFs/Mutual Funds. Here you can see my current projected monthly dividend payments for 2019 and compared to 2018.

So for 2019 my plan is to invest in at least $6000. I plan on buying at least one more foreign ETF to have coverage in all emerging and developed markets. Continue to buy shares of the current funds and stocks I own and at the end of every quarter I will rebalance my portfolio to make sure it keeps to the 25/75 ratio I have. Every 6 months I will look to see if I need sell any under performing holdings and pick up new ones. Of course if we go through a recession I will switch to a more conservative portfolio to ride out the recession.

As always, Happy dividend investing and see everybody in retirement!

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