Investing: On the Right Track or Getting Out of Control?

Despite my Shopping Addiction, I do manage to save a lot of money each year. Since I don’t own my home and have no debt, I’m probably the most “cash rich” now that I’ll be in my lifetime. I might not be the wisest with every last dollar, but what worries me most now is my investment portfolio. What started with a little cash and a bit of fun buying a couple of shares of stock has exploded into a sizable portfolio which can move up or down quite dramatically in any given day.

Case in point, AAPL’s performance as of late. I own 100 shares, which I started buying at $250 and stopped buying at $650, for an average of about $325 a share. While I’m still “up” it was painful to watch the stock drop from $700 to $450. I knew the $700 run up was not going to last, but I was too afraid to sell. And then it dropped, and dropped, and dropped. Even though the P/E is low and they have a lot of cash, everyone is freaking out that they can’t keep innovating. Yet there is no reason today to think that over 6 months ago. Clearly, there’s more going on than just people freaking out. There are big investment banks that like to f*ck with us little people. They do fancy tricks with their investments, and laugh as those of us who don’t understand the bigger picture of investing, or who are told to “buy and hold” and get fiscally slaughtered like bloodbath in a Quentin Tarratino flick.

This year, I’m aggressively investing in my 401k off the bat with $6,466.68 invested in January. That is split up between a bunch of funds, about 30% dividend funds, 20% international, 30% a retirement year fund, and the rest split between small, mid and large caps. So far it seems pretty stable. But if the stock market tanks again, that will go down…

My Investment Accounts Today ($206k)

401K/Traditional IRA Accounts ($55.4k)

  • $25.2k – current 401k (13 months of investment)
  • $21.3k – old 401k (1 year of investment maxed out)
  • $5.3k – traditional IRA account
  • $3.6k – 529 account (not really IRA but putting it here for now)

ROTH IRA ($33.5k)

  • $12.6k – 2 years of Roth IRA
  • $20.9k – vanguard Roth IRA from early years of work

Taxable Accounts ($97.8k)

  • $89k – sharebuilder stock & etf investments
  • $8.4k – vanguard mid cap fund
  • $354 – lending club
  • $65 – prosper

Company Stock ($20k)

  • $20k (exercised stock options)

I don’t keep a lot of cash liquid — which is maybe a bad idea — but I figure I could cash out my $97.8k taxable accounts quickly if needed.

In my next post I’ll explore the question I have regarding whether I should buy a house or condo, or continue to rent…

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5 thoughts on “Investing: On the Right Track or Getting Out of Control?”

    1. I've considered it, but I need to take a better look at what the fees are and what the value of the move would be. I like having my IRAs at Sharebuilder because I can invest in a wider variety of stocks and ETFs there versus Vanguard. My 401ks are what I consider my diversified portfolio – they are all in a mix of funds. I started with Vanguard to provide that diversification but now that I have the 401k I focus mostly on being a little more risky in my Roth.

  1. If you have ever read Good to Great, you may also find another reason why people are shying away from Apple, even if it looks great…. now. 

    From their research, superstar CEOs like Steve Jobs, MAKE the company. Once they leave, it plummets (as evidenced before the iPod, iPhone and iPad went on the market after Jobs returned). It's why people are leaving in droves, plus their most recent offering of the "upgrade" to the iPhone was pathetic, as are all of their 'upgrades'. It isn't giving investors confidence.

    1. Yes, I actually recently bought that book and while I'm not done with it yet, I know what you're talking about. I understand people are worried that Jobs was the be all end all of Apple's success, but I think the company has a lot of smart people there who can continue to innovate. I'm hoping that to be true, but I'm also not buying any more AAPL for the time being.

  2. My 401k funds are designed to diversify in stock types that I do not invest in today enough or that make a high amount of dividends – international funds and high dividend paying stocks. At some point I need to look at my portfolio holistically with a CFP and rebalance. I need to look at bonds as well, I think there are a few in my IRA Retirement 2055 accounts but I’m not sure.

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