12 years to retirement, 50% in Apple
Ok, I got lucky, big time. I purchased a lot of Apple way long ago, around $11/share. I've been selling it off over the past 2 years, not that I thought it was a bad stock to have, but with large amount I had I was way over exposed. When I started I had about 2/3rds of my retirement funds in Apple. I'm now down to about half.
I still think it is a good stock but I'm also not comfortable have that much of my retirement in one stock, no matter how good it is. I sold a bunch near $700 and if I had a time machine I would have sold it all back then. But I don't and it is now and Apple is going to open up sharply today. It has been 3-4 months since I sold any so I'm "on schedule" to sell more.
But I do believe it will go up, China will be huge. Oh, and I really don't have the stomach for more stocks at my age, I'm just in a blend of indexs, S&P and Russell's. That's fine for me.
I appreciate any advice.
Kenpolean said: ↑
Technically, one stock should not take up more than 5% of your entire portfolio, and one industry should not take up more than 10%.
I knew was over exposed but wow, I'm extremely over exposed by that metric! Thanks, I'll keep on selling down every quarter or so.
If you desire to build a conservative portfolio of individual stocks that will likely have a lower beta than the S&P500 consider giving the following thread a study:
http://www.onlinetradersforum.com/t....g-list.659009/
12 years out from retirement you are probably looking at a recommended asset class mix of 50/50 stocks to bonds/cash. I would look to transition this to 40/60 stocks to bonds by the time you retire gradually moving toward a 20/80 mix as you age. The individual stock portfolio methodology outlined in the thread above coupled with tax-exempt municipal bonds would likely serve your needs for safety of principal, income, and purchasing power preservation to mitigate the effects of inflation.
You owe it to yourself to set aside 19 minutes to watch the following (pass it on):
http://youtu.be/jboTeS9Okak
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Perspective:
http://frontpagemag.com/2012/dgreen....p_FrontPageMag
http://www.rushlimbaugh.com/daily/20...nta_claus_winsTechnical Alchemist said: ↑
If you desire to build a conservative portfolio of individual stocks that will likely have a lower beta than the S&P500 consider giving the following thread a study:
http://www.onlinetradersforum.com/t....g-list.659009/
12 years out from retirement you are probably looking at a recommended asset class mix of 50/50 stocks to bonds/cash. I would look to transition this to 40/60 stocks to bonds by the time you retire gradually moving toward a 20/80 mix as you age. The individual stock portfolio methodology outlined in the thread above coupled with tax-exempt municipal bonds would likely serve your needs for safety of principal, income, and purchasing power preservation to mitigate the effects of inflation.
Click to expand...
Thanks, I'll give that a read. I also have about 15% in bonds that "isn't mine" (long story, not worth going into now, but I don't count it as mine) that is all in Bonds. Man, it has done horribly for the past 2 years or so. Yuk. I know I should be in bonds some now but I just hate doing it.
You might hate bonds brother, but you gotta mix things up for your own protection. What if you woke up tomorrow and saw a headline declaring Apple is the new Enron? With your current exposure, you'd be totally wiped out. Thus is the reason for the 5%/10% rule I stated earlier.
And as Alchemist noted, you need to start formulating your plan for safety of principal and preservation of purchasing power while also limiting the tax burden. Lol... retirement wasn't supposed to be this complicated, was it?