Sunday, November 2, 2008

Portfolio Changes

Over the course of the past few months, all of the positions in my buy & hold portfolio hit their respective stop losses. Some were closed at a profit and some at a loss, but overall, a net profit was realized. With the buy & hold portfolio now 100% in cash, I decided to close out this portfolio and redirect the funds into my covered call portfolio and my closed-end fund portfolio.

My buy & hold portfolio and covered call portfolio both shared the same account at Interactive Brokers. By closing the buy & hold portfolio it will be easier to track my covered call portfolio, since it will now be in an account of its own.

A portion of the funds will also be redirected to my closed-end fund portfolio at Scottrade. Most of these funds are down about 40% and trading at double digit discounts to NAV with double digit dividend yields, so this is a great buying opportunity.

This change will leave me with 4 retirement portfolios:

1. An employer 401K portfolio.

US Stocks: 30%
Foreign Stocks: 30%
High-Grade Bonds: 15%
High-Yield Bonds: 10%
Inflation-Protected Treasuries: 10%
Real Estate: 5%

2. Vanguard index fund portfolio.

US Stocks: 30%
Foreign Stocks: 30%
High-Grade Bonds: 10%
High-Yield Bonds: 10%
Precious Metals: 10%
Inflation-Protected Treasuries: 5%
Real Estate: 5%

3. Scottrade closed-end fund portfolio.

Equities: 85%
Fixed Income: 15%

4. Interactive Brokers covered call portfolio.

Cash: 10%
Equities: 80%
Fixed Income: 10%

With new funds now available in my covered call portfolio I'll be able to establish additional equity and fixed income positions for Nov expiration. These trades will be posted when the positions are established, probably sometime this week.