Ok so heres my plan, after careful review of all the input.
I've more or less decided to drop bonds altogether from my portfolio. I'm going to keep a small bit of HY, a small bit of GNMA, and little dollop of california intermediate munis but those munis are going to be in a lot of danger the minute I find an equity fund with a decent value, possibly after a correction.
I'm just not getting paid enough to keep the bonds. And I dont want to chase yield into the high yield arena. Yet.
My current arrangement. Dont mind the small potato investments, they're probably something I wanted but didnt really need, so to stop wanting them I bought a little and moved on. Unclemicks hormone theory. Numbers were pushed a little lower in % when I added a quarter million in cash from selling my wifes old house.
Taxable
29% Wellesley admiral
10.6% Wellington admiral
10% California IT muni admiral
10% California Tax Ex Money Mkt
5% High yield corp admiral
3.6% Energy
3% Pacific Index
3% Europe Index
1.5% GNMA
1.5% Precious Metals
IRA
10.5% REIT admiral, dividends buy small cap value
3.7% Emerging Market
3% Healthcare
2.7% Small cap value
1.6% International Explorer
%'s are total portfolio, I treat IRA and taxable as a unit.
Proposed new "ride"
39% Equity Income admiral Fund (From Wellesley and Cal MM)
10.6% Windsor II admiral (From Wellington)
Everything else stays the same.
Moves me from a 50/40/10 (%equity/bond/cash) to ~80/16.5/3.5 mix.
We'd have ~ 2 years expenses in cash, plus my wifes pay that more than covers the regular expenses.
Heavy in large cap value US dividend payers, a little light in foreign (I'm ok with that, a lot of the US large cap players are globals), very slim tax profile as most of the money thrown off are qualified stock dividends and tax free bonds.
Should Energy come down a little, I might buy more of that with some of the IT Muni money, and I may pare off some of the REIT and buy more small cap value. If my taxes look good I may also move some of the IT muni to the GNMA to pick up a little more yield.
Cash is currently in nearly expired 11 month cd's paying 3.25%, will be rolled over into 5 year 4.61% cd's next month. I know I can get 5% on a 3 year at penfed, but I'd have to open an account, transfer the money, yada yada...couldnt be bothered for such a small amount...these will be held at my regular credit union with fast solvency, six months interest forfeit if I pull the plug early.
Anyone have a klaxon going off or shaking their head muttering "the fool..."?
