Investment Update June 2021

Well the market and our investments continue to move up overall, with the typical ups & downs by investment class. We continue to be on track with what we are looking to add in 2021, and our allocation plan has not really changed. Like a lot of folks in the FIRE community, once you get everything set up, automated and regular, it gets a little boring. Kinda “Steady as she goes.”

Our allocation remains pretty much the same as when I set it back at the beginning of the year, and back in 2020:

  • 20% Bond Index Fund
  • 20% S&P500 Index Fund
  • 20% International Index Fund
  • 20% Small Cap Index Fund
  • 20% REIT Index Fund

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

Overall, our investment classes performed as follows:

  • Bonds were up about 0.7%
  • S&P was up 0.7%%
  • International was ups 3.2%%
  • Small Cap up 0.1%
  • REIT Index up 0.8%

I also have a Vanguard value fund (VVIAX) where I put in my after-tax investment money. That was up 2.9% for the month. I’ve been seeing a lot of articles of Value funds and ETFs doing better than the S&P500 – I guess we’ll see. I may do some additional research and write about this in the future.

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

  • 50% Dividend Stocks
  • 50% REITs

The dividend paying stocks were up an average of 1.8%, and the REITS were down an average of -1.6%, so we’re roughly even for the month of May.

One of the things I did this month was shift my automatic investment amount from my Vanguard Value fund to savings. Its my intention to do a Roth conversion of some funds from my regular IRA to my Roth by the end of the year – because I believe taxes are going up in 2022. I want to try to shift as much as possible into the ROTH, and I’ll be using the money I normally put into investments to pay the taxes on the conversion.

Hope everyone is healthy and your market returns for the rest of the year go up!

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Mr. 39 Months

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