A note of interest: I am addicted to Clark Howard!! I would like to incorporate some of his ideas in to my investment/retirement planning. More on him in a later post!
"top 5 individual holdings should not be in the same industry." They suggest investing in the following way--local company-oil stock--a brand name blue chip--financial--and a speculative stock.I am in the process of making these possible changes--starting another account/portfolio or taking current portfolio up to the next level (from $12/6 trades to $20/20 trades):
- LOCAL--Northwest Savings Bank [NWSB-$17.75-DIV] or...
- OIL STOCK--unknown, possible United Refining
- BLUE CHIP--Honda Motor Corp [HMC-$24.02-DIV]
- FINANCIAL--ING or...
- SPEC--unknown, possible a wind energy company Trinity [TRN--]
- MON--MONSANTO CO//Shares 0.5704//Market Value $45.30
- CHANGE--Shares +.0399//Market Value +$3.07
- CHANGE--Shares +.1288//Market Value +$1.49
- CHANGE--Shares 0//Market Value -$2.02
- CHANGE--Shares +7.8739//Market Value +$9.08
- CHANGE--Shares +.0859//Market Value -$.08
- CHANGE--Shares +.1149//Market Value +$1.49
- CHANGE--$197.25 - $184.16 (1/19/09) = $13.09
- Eliminate one of my utility holdings, replace with a local stock and/or a blue chip--still deciding
- RSG merged with Allied Waste (AW) currently not actively investing, need to change that--
- Reconsider my holding(s) in MON, ethics/morals in business may be a problem--if I do decide to drop must find another blue chip or financial to replace
All told, depending on how this plays out I will be investing $62.40/mth or 4%. I also need to look at my allocations within my 401k and make changes if needed.
Hopefully this post isn't too disjointed as my mind was racing with ideas as I wrote it. I will be updating it soon as I make my decisions and finish my research.
Mini update 2/15/09: I started doing some basic research into Roth's and MMMF's. I definitely need to do more. SO Until I am comfortable with my decision, I am going to go with plan C: decrease 401k to 1% increase Sharebuilders to 3% and add new holdings once determined. If and when I build up enough funds in my Sharebuilders I will then take those funds to do a Roth ($1000-$3000 initial minimum investment); MMMF undetermined at this point. Changes will most likely take place in March.