All,
I've taken your advice and started to look at setting up a more diversified portfolio. I have to come clean. I, as TH has, have been timing the market. Actually, for the past decade I rode the tech stock wave from the mid ninties to April 2000 and bailed on all stocks. I just got back in the market March 2003 primairly in the QQQs. I sold all my QQQs today. The QQQs were up ~ 35% over that period and will have a 5% long term capital gain tax rate...not bad! But now I want to diversify.
Heres what I'm thinking:
1) Taxable account (33 % net worth)
100% Wellesley
2) IRAs (50% net worth)
100 % Wellington
3) Individual Stock from Options (17 % net worth)
Can't diversify until they go public or sell.
I want to keep everything as simple as possible for now as I will be a Perpetual Traveler for at least the next few years. I'm 39 and starting to travel next week. I'm thinking of letting the IRAs grow as long as possble and live off the taxable account. I plan on spending ~ 4% per year.
I'm thinking of having one years expenses in a money market account (or ?) and having the Wellesley dividends add to this spending account. Does this strategy seem reasonable? Any other suggestions?
Surf
I've taken your advice and started to look at setting up a more diversified portfolio. I have to come clean. I, as TH has, have been timing the market. Actually, for the past decade I rode the tech stock wave from the mid ninties to April 2000 and bailed on all stocks. I just got back in the market March 2003 primairly in the QQQs. I sold all my QQQs today. The QQQs were up ~ 35% over that period and will have a 5% long term capital gain tax rate...not bad! But now I want to diversify.
Heres what I'm thinking:
1) Taxable account (33 % net worth)
100% Wellesley
2) IRAs (50% net worth)
100 % Wellington
3) Individual Stock from Options (17 % net worth)
Can't diversify until they go public or sell.
I want to keep everything as simple as possible for now as I will be a Perpetual Traveler for at least the next few years. I'm 39 and starting to travel next week. I'm thinking of letting the IRAs grow as long as possble and live off the taxable account. I plan on spending ~ 4% per year.
I'm thinking of having one years expenses in a money market account (or ?) and having the Wellesley dividends add to this spending account. Does this strategy seem reasonable? Any other suggestions?
Surf