Friday, December 8, 2006

Portfolio Allocation

I'm a firm believer in not putting all your eggs in one basket. Therefore, I've divided my IRA account into several different portfolios with different assets, investment methodologies, and brokerages. Most of these are passive investments with periodic rebalancing, except for my covered call portfolio which is actively managed. By dividing up my IRA account in this manner I reduce the risk of any one asset/methodology from having an adverse effect on my overall account.

Here's a breakdown of my IRA account:

Percent

Brokerage

Assets/Methodology

Objective

30%

Interactive Brokers

Covered Calls on Stocks

Income

25%

Vanguard

Index Funds

Growth & Income

15%

Interactive Brokers

Buy & Hold Stocks

Growth

15%

Scottrade

Closed-End Funds

Income

15%

Scottrade

CD Ladder

Income