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…