Investment update for Feb 2019

Realized that I hadn’t done an investment update for February this year. I guess when you hit a certain point on your FI journey, where everything is on “autopilot” you just don’t notice. It’s a shame, really, because February was another good month, coming off a really good January. There are reports of the economy slowing down in 2019, but the reporting of profits in 2018 has provided some positive surprises for companies, and the result has been a continued strong market. Also, the US Fed has backed off its aggressive stance on interest rates (see my previous post on that effect) so the market will hopefully do well in early 2019.

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

Another positive month, with small caps, International and S&P 500 leading the way. These were the investment areas that underperformed in 2018, so they are making up for lost ground. A perfect example of the need to rebalance your portfolio. I rebalanced at the beginning of 2019, selling off my “winners” (bonds, REITs) and buying some more “losers’ (S&P500, small cap, international) and now I’m being rewarded by those stocks shooting up. Overall, I’m up around 2.4% for the month, a gain of around $22K, and I’ve made around $90K in the first two months of 2019. Very pleasing!

  • S&P500: +3.5%
  • Small Cap: -+5.4%
  • International: +2.4%
  • Bonds: -0.1%
  • REITs: +0.8%

My 401K/Deferred account at work is up a similar amount

Dividend Income Account: Allocation:

  • 25% Dividend Stocks
  • 25% REITs
  • 50% Bond Index Funds

This is up only 0.9% for the month, so  gain, but not a significant one. Again, if you look at the allocation above, the 50% bond allocation is driving down returns. My dividend stocks were up a little over 4% (in addition to the dividends they are paying. I’m satisfied.

Value Investing Account: My value investing portfolio is up around 4.3% for the month. It got hit in 2018, and is making a comeback, as value stocks are doing better. The allocation is about 50/50 between a total market fund and a value index fund.

Allocation now:

  • 51% USAA Market Index (my brokerage is USAA)
  • 49% in Vanguard Value Index fund

So for the year so far, I’m up 9.4%, in addition to having dumped almost $9K into the savings, which is close to 50% of my gross salary. I hope the success continues in the months ahead, both for me and for you!

Mr. 39 Months

4 thoughts on “Investment update for Feb 2019”

    1. Well, I’ve lived through three downturns (1990, 2000, 2008) and several “crashes” like 1987. Also, I’m getting closer to my FIRE date (only 15 months to go!) so I’ve moved some additional funds for bonds, based on our bucket plan. The idea is roughly 10% in cash (which my wife’s account holds) for 1-2 years of spending, then 3-5 years worth in bonds. The rest in stocks. I’ll keep my 70% stocks/Reits allocation for the next 10-20 years to maintain growth.

      Based on my reading, this allocation should net me around 5.24% historically, after inflation.

      When I was younger, I had a much more aggressive allocation, but I’m in my mid-50s right now, and looking to “glide in.” Since I won’t need the additional money, this helps me sleep well at night and still hit my goals.

      I can understand, though, why some folks will go more aggressive.

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