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Updating the Portfolios
By JLP | November 14, 2006
Sorry for the lack of posts today. I had my sick daughter at home with me today. It’s never fun when your kids are sick. I spent the day working, but not on AFM.
The end of the year is approaching and I decided to get my portfolio tracking spreadsheets caught up. I have three portfolios that I track. The first two utilize only exchange-traded funds. One is a retirement portfolio and the other is an aggressive portfolio. The third portfolio is something I call the Prudent Portfolio (more on that in a later post). Overall, I’m impressed with how well both the retirement portfolio and the aggressive portfolio have performed this year. Right now I want to concentrate on the retirement portfolio. Here’s a basic breakdown:
The Retirement Portfolio
40% Domestic equity using the 10 sector exchange-traded funds for the Dow Jones Total Market Index
20% International equity using the MSCI EAFE exchange-traded fund
40% Bonds using the Lehman Aggregate Bond exchange-traded fund and the Goldman Sachs InvestTop exchange-traded fund
I used the numbers from the example I posted about at the beginning of the year. I took last year’s ending value of $999,725 and subtracted off 5% for income ($49,986), which left $949,738. I then divided that amount up and placed it in the portfolio as follows:
|
Ticker |
% |
12/30/05 |
11/13/06 |
+ YTD |
Total |
|
IYM |
4 |
$37,990 |
$42,523 |
$541 |
$43,064 |
|
IYC |
4 |
$37,990 |
$41,890 |
$93 |
$41,983 |
|
IYK |
4 |
$37,990 |
$41,577 |
$536 |
$42,113 |
|
IYE |
4 |
$37,990 |
$44,103 |
$361 |
$44,464 |
|
IYF |
4 |
$37,990 |
$42,973 |
$556 |
$43,529 |
|
IYH |
4 |
$37,990 |
$38,936 |
$258 |
$39,194 |
|
IYJ |
4 |
$37,990 |
$41,871 |
$302 |
$42,173 |
|
IYW |
4 |
$37,990 |
$41,596 |
$49 |
$41,645 |
|
IYZ |
4 |
$37,990 |
$47,063 |
$728 |
$47,791 |
|
IDU |
4 |
$37,990 |
$43,679 |
$835 |
$44,513 |
|
EFA |
20 |
$189,948 |
$226,192 |
$0 |
$226,192 |
|
AGG |
20 |
$189,948 |
$189,211 |
$7,385 |
$196,596 |
|
LQD |
20 |
$189,948 |
$189,418 |
$7,934 |
$197,352 |
|
Totals |
|
$949,738 |
$1,031,030 |
$19,577 |
$1,050,608 |
|
|
- Fees |
$7,251 |
|||
|
|
Total Ending Value |
$1,043,357 |
|||
The fee amount could change but not probably not by much. To calculate the fees I used the average account value for the year [($949,738 + 1,050,608) ÷ 2] and multiplied that number by .725% (FOLIOfn fee of .275% and a management fee of .45%). Please note that there are also management fees inside each of the exchange-traded funds. I realize that this isn’t the most accurate way to handle fees, but it is good enough to give you a good idea of what the fees might be in a real-life situation.
So, based on these numbers, this portfolio has returned around 9.86% after fees so far this year. Not too shabby. I’ll have to do a bit of research to see how that compares with the other investments of like-kind.
Topics: Exchange-Traded Funds, Index Funds, Investing, Retirement Planning | 2 Comments »
November 14th, 2006 at 2:41 pm
Good return after fees. Did you count inflation or no? I know those numbers will end up going up even more because shopping season is right around the corner.
November 14th, 2006 at 4:05 pm
I hope the little girl is feeling better! That looks like a pretty good return for the year.