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URL:  https://boards.fool.com/hi-swing4thefence88-i-hope-your-user-name-is-not-34753528.aspx

Subject:  Re: Holding Growth or Re-allocation 2 Dividend P Date:  2/16/2021  2:56 PM
Author:  gdett2 Number:  27971 of 27993

Hi Swing4TheFence88,

I hope your user name is not indicative of your investing style.

You mention one large position. Is it more than 10% of your portfolio? This should include all investing accounts: taxable brokerage, IRA's of all types, 401K, 403B, 457, SEP, SIMPLE, etc accounts.

I ask because 10% is the guideline I use for our portfolio. I let some growth companies go to 15% and even higher.

That all said, I will tell you a story:

When we retired in 2005, our dividend core was 65% of our portfolio and our interest bearing (4.5% APR) annuities were 14%. They produced about 90% of our cash needs.

Currently, they are 13.71% and 4.20% respectively and currently produce 193% of our needed cash.

While they have grown in value and in their output, they are a smaller portion of our portfolio simply because the growth portion has vastly out performed those 2 pieces.

Since retiring, our net of deposits and withdrawals is almost 2X what our portfolio was worth on the day we stopped working. Think about that. If our portfolio was $1,000 in 2005 we have removed almost $2,000 from it and we currently have 6.8X what we retired with in our portfolio.

Will any low growth dividend payer equal the return on something like AMZN, NFLX and GOOG have in the last 15 years or the newer, smaller, faster growing crowd will do in the next 15 years?

No. It just is not going to happen.

I keep these two groups in our portfolio for cash flow stability and in the case I "depart" my DW will be able to just withdraw cash and not have to worry about anything else.


Does that help you?

Gene
All holdings and some statistics on my Fool profile page
http://my.fool.com/profile/gdett2/info.aspx
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