Hi,
I am looking for a smooth ride. My spouse and I are 45. We manage our money separately. My current portfolio is:
Preferred shares total - $581,741
Annuity total - $553,330
Bonds total - $804,634
Mutual Funds total - $359,995
I-bonds - $15,000
Cash - $108,852
Total = $2,423,552
We jointly own our home worth about $500k. We have no mortgage or debt of any kind. The annuities will provide a lifetime income payment of $103K per year for life starting at 65 (in 20 yrs) but I will not have access to the principal again.
My investment history is pretty much all individual stocks, then a mix of stocks and mutual funds, then pulled it all out of the stock market and put it in to bonds and cash. Now redistributing it with a new philosophy of smooth and steady but modest returns.
My current portfolio is expected to yield 5.28% overall. However that is goosed up a bit because it includes a 6.9% increase in the value of the annuities. In my spreadsheet I only expect about 3% a yr from HSTRX. My bond yield is a meager 2.2%. So the bulk of my expected returns is from the preferred and the annuities (I know I don't see the principal again). My preferreds are mostly utilities and insurance companies. I avoided the financial companies.
I would like to diversify my holdings as I tend to get over concentrated very quickly. For example almost all the mutual fund money is in HSTRX. Of the preferred shares my largest holding is IPLPRB with $170K (I was seduced by the 7.46% return - old habits die hard).
The bonds mature at a rate of about 100K per year for the next 8 yrs. The preferred's spit out income also. This all needs to be reinvested so I'm looking for new potential investments to diversify. I have income to live on and since I live below my means, extra money from that will be invested each year also.
I am interested in any suggestions for investment areas I may have over looked. I did look into buying rental property (and have a lovely spreadsheet to show for it) but decided that it would be too much trouble to manage.
As my title suggests I would like a smooth ride from anything I put my money into. There is another thread floating around discussing the idea of 'making it' and not needing to play the game any more. I think I'm pretty much in that category so am trying to stay away from anything risky or bubbly.
If I can continue to average the 5.28% and do a 4% withdrawal rate on the non-annuity portion, my income at 65 is a more than respectable $288,431 (in today's dollars, assuming a 3.3% annual inflation rate that will be $150,673). This assumes I don't put any more in and suffer no losses. I do intend to put more aside but I would like to not suffer any more losses.
Any suggestions (especially specific symbols or funds) will be much appreciated.
I am looking for a smooth ride. My spouse and I are 45. We manage our money separately. My current portfolio is:
Preferred shares total - $581,741
Annuity total - $553,330
Bonds total - $804,634
Mutual Funds total - $359,995
I-bonds - $15,000
Cash - $108,852
Total = $2,423,552
We jointly own our home worth about $500k. We have no mortgage or debt of any kind. The annuities will provide a lifetime income payment of $103K per year for life starting at 65 (in 20 yrs) but I will not have access to the principal again.
My investment history is pretty much all individual stocks, then a mix of stocks and mutual funds, then pulled it all out of the stock market and put it in to bonds and cash. Now redistributing it with a new philosophy of smooth and steady but modest returns.
My current portfolio is expected to yield 5.28% overall. However that is goosed up a bit because it includes a 6.9% increase in the value of the annuities. In my spreadsheet I only expect about 3% a yr from HSTRX. My bond yield is a meager 2.2%. So the bulk of my expected returns is from the preferred and the annuities (I know I don't see the principal again). My preferreds are mostly utilities and insurance companies. I avoided the financial companies.
I would like to diversify my holdings as I tend to get over concentrated very quickly. For example almost all the mutual fund money is in HSTRX. Of the preferred shares my largest holding is IPLPRB with $170K (I was seduced by the 7.46% return - old habits die hard).
The bonds mature at a rate of about 100K per year for the next 8 yrs. The preferred's spit out income also. This all needs to be reinvested so I'm looking for new potential investments to diversify. I have income to live on and since I live below my means, extra money from that will be invested each year also.
I am interested in any suggestions for investment areas I may have over looked. I did look into buying rental property (and have a lovely spreadsheet to show for it) but decided that it would be too much trouble to manage.
As my title suggests I would like a smooth ride from anything I put my money into. There is another thread floating around discussing the idea of 'making it' and not needing to play the game any more. I think I'm pretty much in that category so am trying to stay away from anything risky or bubbly.
If I can continue to average the 5.28% and do a 4% withdrawal rate on the non-annuity portion, my income at 65 is a more than respectable $288,431 (in today's dollars, assuming a 3.3% annual inflation rate that will be $150,673). This assumes I don't put any more in and suffer no losses. I do intend to put more aside but I would like to not suffer any more losses.
Any suggestions (especially specific symbols or funds) will be much appreciated.