Investment Update May 2020

Like most folks, April was a lot kinder to me than March. For March, we lost about $161K of our investments (though it was as much as a $191K loss as late as March 23rd). With April being an “up” month, states and countries opening backup, and businesses starting to discuss getting back to normal, let’s hope the economy starts rolling. Our unemployment rate in the US is going to be pretty substantial, and we’ll probably be spending the next 12-18 months cutting it back to normal.

As you know, the allocation for my retirement accounts (IRAs, 401K, etc) is pretty much index funds, spread out between the  S&P 500, small-cap, international, REITs and bonds. Due to this allocation, I didn’t get hit as hard as some folks in March or in late 2018 – but I also didn’t get as big an “upside” in 2019 either. It all depends on your risk tolerance.

Retirement Accounts: Remember, my allocation for these is:

  • 30% Bond Index Fund
  • 17.5% S&P500 Index Fund
  • 17.5% International Index Fund
  • 17.5% Small Cap Index Fund
  • 17.5% REIT Index Fund

My 401K doesn’t have REIT option, so its just 25% for each.

As you would expect, everything was up, though in different amounts.

  • S&P500: 12%
  • Small Cap: 14.5%
  • International: 5.5%
  • REITs: 6%
  • Bonds: 2%

My dividend account new allocation (as of Jan 2020) was:

  • 50% Dividend Stocks
  • 50% REITs

The dividend paying stocks were up anywhere from 11% – 23%, though most of them are still in negative territory from the beginning of the year. My dividend yield from 1st Quarter was 6.13% (annualized) which was a big increase from last year, but a major part of that yield equation was the low stock price. Still, I collected 18.6% more in dividends in 1st qtr 2020 than in 1st qtr 2019, so we’ve made improvements there. Now we just have to hope these companies don’t cut their dividends.

My brokerage account at my bank was shut down (they were moving it to Schwab and I don’t want to have three large firms with our investments) so I shut it down and invested it all into Vanguard Value Index average fund, to try and chase some value stocks. It was up 5.1% in April, once the change was made.

For March, I was down -13.68% overall. For April, I climbed up 8.55%, but I’m still down 11.13% for 2020. We’re back to over $1.1M in invested assets. Plan to continue working on hitting our FI number.

Hope everyone is healthy and your May turns our well!

Mr. 39 Months

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