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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (8553)	8/25/2024 10:34:15 AM
From: R.Daneel.Olivaw	2 Recommendations Recommended By livwell Waitress Respond to of 21804

Re: Older Folk Portfolio 2.0 ... It would easier to find a benchmark if you have your assets divided by category (I didn't see it if it was there) For example, Morningstar has a number of blended 'index' funds. Or, my preference would be create your own. Put SPY, a bond fund, an income fund, others? in a portfolio tracker, and compare it to the COFI index. (Chowder Old Folks Index)...HAH! Git Some! Sorry, got carried away there, but seriously, what are the percentages? I find this an interesting exercise.

To: chowder who wrote (8553)	8/25/2024 10:51:28 AM
From: R.Daneel.Olivaw	Respond to of 21804

Re: Older Folk Portfolio 2.0 ... Bloomberg U.S. Aggregate Bond Index (AGG): This is the most commonly used benchmark for the U.S. bond market. It includes investment-grade government bonds, corporate bonds, mortgage-backed securities (MBS), and asset-backed securities (ABS). The index is a good representation of the overall U.S. investment-grade bond market. SPAXX is the ticker symbol for the Fidelity Government Money Market Fund as you know. SPY for growth. something for momentum? (edited) from chatgpt S-Network Composite Closed-End Fund Index (CEFX): This index tracks the performance of a broad universe of U.S.-listed closed-end funds (CEFs). It’s designed to provide a benchmark for the entire CEF market, including various asset classes such as equity, fixed income, and hybrid funds. Morningstar CEF Indexes: Morningstar offers several indices focused on closed-end funds, including equity and fixed income CEFs. These can serve as a benchmark depending on the specific type of CEFs in your portfolio. S&P Closed-End Fund Index: This index is designed to measure the performance of CEFs, specifically those that are invested in U.S. equity and bond markets. It can serve as a benchmark for tracking the performance of CEFs within your portfolio. etc.

To: chowder who wrote (8553)	8/25/2024 10:58:04 AM
From: SeeksQuality	3 Recommendations Recommended By ddbpaso Markbn Waitress Read Replies (1) \| Respond to of 21804

The equity holdings are at least aggressive as SPY, likely with a growth slant. The CEFs don't really alter that, they just help to convert the gains to income. The 20% cash holding does bring the risk profile down, so my guess is that the account level beta is between 0.80 and 0.85 once the CDs are factored in, but you'll get a better estimate from a portfolio X-ray tool on the equity positions. Just multiply the answer by 0.80 (since it is 20% CDs) to get the overall beta. That's at the upper end of the reasonable range for a retirement income portfolio, but if the primary objective is capital preservation and growth then it is likely properly positioned. I would use 80% SPY/20% Treasuries as the benchmark.

To: chowder who wrote (8553)	8/25/2024 12:54:22 PM
From: Max2.0	Read Replies (1) \| Respond to of 21804

Looks like the cash/CD portion of the portfolio might be higher than I would have. I have maybe a similar % tied up in cash & fixed income but most of my fixed income is paying greater than 5%. I have lots of funds tied up in FFRHX (Floating Rate traditional mutual fund) paying 8.51% with a beta of 0.06. CLO ETFs: CLOZ, JAAA, JBBB and some credit CEFs: BGB, FTHY, PDX & PFN. I still have $120k in cash and another $8K in CDs.

To: chowder who wrote (8553)	8/25/2024 7:27:44 PM
From: misscbd	1 Recommendation Recommended By beagle57 Read Replies (1) \| Respond to of 21804

re: The original Older Folk Portfolio has been turned back over to its owner since the portfolio objective has been achieved. Not clear what this means. Will you no longer be updating assets in the OFP? Is it on "auto pilot"?

To: chowder who wrote (8553)

9/22/2024 9:49:43 AM

From: chowder

10 Recommendations

Recommended By
ALinVA
cemanuel
ddbpaso
Fireball Dividend
livwell

and 5 more members

Read Replies (4) | Respond to of 21804

Re: Older Folk Portfolio 2.0 (OFP 2.0) ... Update

The original Older Folk Portfolio has been turned back over to its owner since the portfolio objective of $500,000 in annual dividends has been achieved, and now that he's retired, he has time to manage his portfolio from here.

Older Folk Portfolio 2.0 has different objectives. This portfolio is a little more difficult to manage because it wants to combine growth, income and capital preservation, especially capital preservation. It's a blend of objectives.

Since this portfolio is a blend of growth and income, I'm using VWELX as a benchmark as it too is a blended growth and income fund.
======================================

YTD Performance: (9/22/24) According to Schwab,

OFP 2.0 .... +17.49%
VWELX ..... +13.25%

Rate of Return Summary

17.49%

Portfolio Value: $2,055,804
Annual Income: $87,048
Portfolio Yield: 4.24%
Holdings: 73

========================================

Symbol ... % of portfolio

SWVXX .... $384,872 ... 18.7% (money market fund)
AAPL ........ $85,575 ..... 4.2%
MSFT ....... $82,701 ..... 4.0%
SPY .......... $79,555 ..... 3.9%
SMH ......... $63,044 ..... 3.1%

LLY .......... $60,818 .... 3.0%
XLK ......... $54,520 .... 2.7%
SCHG ..... $49,087 .... 2.4%
COST ..... $45,349 .... 2.2%
SPMO ..... $45,265 .... 2.2%

ABBV ...... $42,757 ... 2.1%
CAT ......... $39,833 ... 1.9%
MA ........... $36,956 ... 1.8%
SO ........... $35,880 ... 1.7%
ISRG ....... $35,006 ... 1.7%

NVDA ...... $34,800 ... 1.7%
HD .......... $33,138 ... 1.6%
OBDC ..... $32,950 ... 1.6%
BRK.B .... $31,872 .... 1.6% (adding more tomorrow)
PGR ....... $31,109 .... 1.5% (adding more tomorrow)

AFL ........ $30,757 .... 1.5% (adding more tomorrow)
GD ......... $30,687 .... 1.5%
DUK ....... $30,256 .... 1.5%
ARCC .... $29,431 .... 1.4% (to be sold tomorrow)
AIO ........ $27,739 .... 1.3%

ET .......... $25,920 ... 1.3%
RTX ....... $25,048 .... 1.2%
MAIN ..... $25,000 .... 1.2%
AMGN ... $23,617 .... 1.1%
EPD ...... $21,110 .... 1.0%

AFB ....... $20,970 ... 1.0% (muni-bond fund)
EVN ....... $20,739 ... 1.0% (muni-bond fund)
KO ......... $20,704 ... 1.0%
WEC ...... $19,891 ... 1.0%
EIM ........ $19,750 ... 1.0% (muni-bond fund)

RSG ...... $19,132 ... 0.9%
EFT ....... $17,640 ... 0.9%
EOS ...... $15,947 ... 0.8%
ETW ...... $15,783 ... 0.8%
ETY ....... $14,430 ... 0.7%

ARDC .... $14,037 ... 0.7%
THQ ....... $13,788 ... 0.7%
AVK ....... $12,507 ... 0.6%
JFR ....... $12,087 ... 0.6%
NBXG ... $11,441 .... 0.6%

EOI ........ $11,398 ... 0.6%
CCD ...... $11,033 ... 0.5%
RA ......... $10,864 ... 0.5%
JRI ........ $10,603 ... 0.5%
HTGC ... $10,456 ... 0.5%

WDI ........ $10,398 ... 0.5%
RLTY ...... $10,327 ... 0.5%
ASGI ....... $9,505 .... 0.5%
CSWC .... $8,876 .... 0.4%
DPG ....... $8,621 .... 0.4%

OCCI ..... $8,554 ... 0.4%
BXSL ..... $8,269 ... 0.4%
BGB ...... $8,228 ... 0.4%
PHD ...... $8,169 ... 0.4%
BGX ...... $8,101 ... 0.4%

OXLC .... $8,039 ... 0.4%
BLW ...... $7,787 ... 0.4%
ECC ...... $7,759 ... 0.4%
FRA ...... $7,751 .... 0.4%
PTY ...... $7,470 .... 0.4%

XFLT .... $7,278 .... 0.4%
BIT ....... $7,104 .... 0.3%
CMG .... $6,122 .... 0.3% (adding more tomorrow)
EIC ...... $5,679 .... 0.3%
BST ..... $5,565 .... 0.3%

NXG ..... $5,492 ... 0.3%
FTHY ... $4,384 ... 0.2%
EXG ..... $4,289 ... 0.2%
CAVA .... $4,121 ... 0.2% (adding more tomorrow)
----------------------------------------------------------------------

Note how most of the CEF's are the smallest holdings. I would prefer to own 2 to 3 times more CEF's at a small percentage than to own a few as a large sized position. I want to spread income risk since we know that most CEF's will cut their distribution, but not at the same time.

Only 3 CEF's are in the red on price, but in the green if you add back the distributions.

XFLT .. -1.7% ... 15.07% yield
ECC ... -1.4% ... 17.21% yield
EIC .... -1.3% ... 15.42% yield
All other CEF's are in the green on price and solidly in the green when you add back the distributions.