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Finally Buying More

Byadmin

A couple of weeks ago, I appreciated the cash that I had in my account in 2022. It probably protected me from a depressing year last year. And having too much cash seems like “an excellent problem to have,” all things considered.

I thought perhaps having more cash would be a permanent portfolio feature.

Probably in the long run, though, in 20 years, I will regret having so much cash. I will calculate the millions of dollars I could have made if I had been fully invested. I will realize that no big emergency ever happened that needed so much cash. I will say that the “time in the market” folks were right. So I should still reduce my cash holdings by another 10% in the next few months.

Today, I had more confidence and put another 2% of my cash to work. My 38% cash position dropped to 36%. You say, “big deal!” And you’re right. It’s not that impressive in the grand scheme of things.

In the next two days, another 6.5% of cash will be deposited into my bank account as my monthly business income comes in.

So far, I have been focused on high dividend-paying ETFs and stocks. My average annual dividend return is almost 8% at this point. I might put some money back into S&P 500 ETFs and Total Stock Market ETFs in the next little while. High dividends are great. But for now, I’m also paying taxes on that money. It might be good to have some long-term growth in there as well.

I can’t remember if I did this before on this blog. But let’s try to construct an excellent portfolio mix.

  • Index funds – 35%
  • Individual stocks (story stocks) – 5%
  • High dividend stock/ETFs – 30%
  • High dividend bond ETFs – 15%
  • Cash/GICs – 15%

I wonder what my current mix is. My current portfolio mix is as follows:

  • Index funds – 24.6%
  • Growth/story stocks – 4.5%
  • High dividend stock/ETFs – 20.2%
  • High dividend bond ETFs -11.0%
  • Cash/GICs – 40.3%

It might not add up to 100% exactly. My math is approximate sometimes.

I’m surprised that I am not too far off from my goal. It seems clear actually that I should be putting some more money into high-dividend stocks and bonds.

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