I have a couple free trades for this month, so I decided to buy at least something. In my regular brokerage account, almost EVERYTHING is in the red, except for Dick’s Sporting Goods. I considered buying some more IJS (a small cap value ETF) which is down some. But then I decided to buy a little bit of EEM in my regular account. I bought $100 worth. I own a bunch of EEM in both my Roth IRA and my wife’s Roth IRA. It has been doing pretty well, but it is a little down from where it had been. So I decided to buy some. My Roth IRA is Maxed out for 2006, but my wife’s isn’t. So will probably later this month buy some more shares of something in her Roth IRA. Maybe some more IYR (A REIT index ETF). I really like IYR.
I have another free trade in my regular account, so I might buy another $100 worth of something or other.
I originally bought the Citibank stock when I was playing with the Dogs Of The Dow strategy. When I decided not to follow that strategy anymore, I sold off the Citibank stock. But shortly afterward I got a dividend which was reinvested, and I now owned this little tiny fraction of a share of Citibank stock. It was only worth a couple of bucks. And it has been sitting in my account ever since. It was worthless than the transaction cost to sell it. But I get two free transactions a month, so this month I decided to use one of them to sell that little bit of Citibank stock to get it off my books!
I decided to do a 401k rebalance. Some of my funds were significantly higher than other funds in my 401k. And when we switched from Amvescap to Fidelity, our available funds changed. They moved us in to roughly equivalent funds at fidelity. I was going to add in American Funds Growth Fund of America (RGAEX) which has been doing quite well. I would have divided my balance into 20% each. But then I decided to drop the S&P 500, and stick with just the 4 funds, all that have been outperforming the S&P 500. So I am investing in the most aggressive funds available to me in my 401k. This strategy has been working for me very well so far. The 401k rebalance should take place sometime after the market closes.
So my new 401k balance would be:
25% American Funds Growth Fund (RGAEX)
25% Victory Special Value Fund (SSVSX)
25% Oppenheimer Main Street Small Cap Fund (OPMSX)
25% American Funds Europacific Growth Fund (REREX)
The sale for my IYR went through. I got $2,443.97. I placed an order for IJS which is a Small Cap Value index fund that has been doing well. I want to add more funds to my regular brokerage account. IYR was just not a good one for my regular account due to the tax implications. I love it in my Roth IRA though!
I have been thinking about it for a while. I love IYR (a REIT index fund) in my Roth IRA! I bought some for my regular brokerage account, but I learned dividends from REITs get taxed as income, not at the lower dividend tax rate. So my earnings are getting eaten up by taxes. It didn’t matter in the Roth IRA where my earnings are tax free. So I decided to sell it. First I made sure it was not between an ex-dividend date and a dividend date. I hate selling off a stock, and then getting a tiny dividend. Then I have this tiny amount that is not worth selling but just sits there messing up my portfolio screen. IYR was well past the last dividend.
I will probably buy some IJS which is a small cap value index fund. It has track similar to IYR but should be more tax friendly in my regular brokerage account.