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The Information Technology Sector (Aim = 15% of my Stock holdings)ġ. With fee-free trading and the advent of fractional shares, investors are more capable than ever in setting up amazing portfolios even when starting from scratch. The best thing about my portfolio setup is that it is scalable so that people interested in following a similar path can set up their portfolios to follow my path no matter how small or large their holdings are. Here are the details of my personal ~$410k portfolio then, based on values of approximately $40k, $400k, and $4 million broken down by sectors with brief descriptions of each stock in each sector. Here are some of the main changes since my last portfolio article in October of 2021. Diversification lifts my whole portfolio's returns over time, so finding the best stocks in every sector is a goal for me each and every year. I plan to have bonds be a very small portion of my portfolio up to right around age 65. It is currently built with approximately 86% domestic stocks and 14% foreign stocks I have about 2.5% of my portfolio in bond mutual funds so that I know how they work and to have at least a little exposure to this sector over time. My portfolio was divided up to start 2021 at around 73% stocks and around 27% mutual and index funds with the goal to increase stocks to over 80% of my portfolio over time. Here's how the SPY has tracked over the first 11 months of 2021 as it took a dive here towards the end of the month based on COVID variant fears. Not every month will be a winner, but regular contributions can help make anyone's performance look great over time. Regular contributions to your retirement portfolio help your portfolio to grow even on less than ideal months where you fail to outperform the S&P 500. Here is how my portfolio performed compared to the SPDR S&P 500 Trust (NYSEARCA: SPY) over the first eleven months of 2021. This is why when you start out investing, you should try to add to accounts like IRAs ASAP instead of putting the money into regular taxable investment accounts. The more money you have, the more concern you should have with taxes. ContributionsĬontributions make up a vital component of your portfolio especially when you are starting out as they are the building blocks of tax advantaged savings for retirement. My ratios and distributions are based on my book - Investing Better Than A Money Manager: The Rise Of Retail Investing. Each and every individual person intent on having the happiest retirement possible could and should take charge of their retirement portfolios and invest in simple index/mutual funds and/or a balanced portfolio like the one I have set up to maximize returns over decades of performance. It is my firm belief that 80% of money managers can't outperform the S&P 500 index over time due primarily to the fees they charge their clients.