Skip to main content
No. of Recommendations: 0
Hi guys,

Over the past few years I've built up a little egg in two retirement accounts, a standard and a Roth IRA. I have other stuff, like a Vanguard account and my 401(k), but these two accounts are the only two that I've done any individual stock picking in. I started with the Roth, and opened the standard IRA later because there was a time when I wasn't covered by a retirement plan at work so it was good for taxes. Anyway, I haven't paid much attention to which stocks were going into what accounts, and I think maybe I should look at whether I can optimize them to achieve [something]. Hopefully y'all can help me. Here are my stocks. Obviously, some have done better than others, but for simplicity let's assume each ticker is equally weighted (for instance, I have a x2 position in AAPL and AGNC):

Roth IRA:
AGNC - REIT
NLY - REIT
AAPL - Tech
INTC - Tech
IBM - Tech / Services
JNJ - Pharma / Consumer Staples
KMB - Consumer Staples
PCL - REIT
PT - Utility
VZ - Utility

Standard IRA:
AGNC - REIT
AAPL - Tech
ARR - REIT
GLW - Tech
MCD - Consumer Staples
OHI - REIT
POT - Natural Resources
SLW - Natural Resources
TGT - Retail
STX - Tech

Gosh, writing it out feels like airing dirty laundry! The intent of this post is not for me to defend these stock picks, but rather to see if there are any good reasons for any of the Roth stocks to be in the Standard account or vice versa. As you can see, they all yield something, and I am DRIPping all of them. Maybe nothing needs to be done here, but I've never looked at it with an eye towards, well, whatever it is I should have an eye towards. Anything jump out at you?
Print the post Back To Top
No. of Recommendations: 1
Assuming all equally weighted, the three things that jump out at me are your 30% REIT and 30% tech allocation and lack of energy stocks.

Maybe shave back your REIT and tech to 20% each and buy some oil producers, electric companies, and pipelines.

JLC
Print the post Back To Top
No. of Recommendations: 1
In addition to what JLC said, you don't have much healthcare, JNJ is the only one I see.

I personally believe that the healthcare will have outsized growth compared to the rest of the economy, mainly becuase the population is aging, and health care is more accessible due to the ACA.

Back in 2008 I did a portfolio review and added FSHCX (Fidelity Select Medical), about 15% of my port. Since that time it has been on fire, handily beating the S&P and any other stock or mutual fund that I own. For the reasons I mentioned, it seems reasonable to me that the health care sector will continue to outperform.
Print the post Back To Top
No. of Recommendations: 2
Anyway, I haven't paid much attention to which stocks were going into what accounts, and I think maybe I should look at whether I can optimize them to achieve [something].

Take a look at this post I wrote a year ago. I think it talks about your concern.

http://boards.fool.com/i-think-there-is-a-small-difference-b...

--Peter
Print the post Back To Top
No. of Recommendations: 1
One rule of thumb might be to put the stocks/funds with the greatest potential for growth in the Roth IRA, since the none of the value, including the gains, will be taxed in the end [assuming no changes to current tax law]. For this purpose, it makes sense to define growth as capital gain + dividends accrued.

-progmtl.
Print the post Back To Top
No. of Recommendations: 2
Thanks for all the replies! To those who said I should be more diversified in other sectors, keep in mind that my 401(k) and Vanguard accounts (not posted) are entirely low-cost index funds of various types (something like 25% S&P 500, 25% international, 25% wellington and 24% small cap), so I am diversified. These were my actual stock picks, which I have chosen because I think their long term prospects are good.

I will digest all of your comments (especially in the link provided) and post again if I change anything. Thanks again!
Print the post Back To Top