Three Retirement Portfolios one of which will work for anyone.

Having stopped trading about three months ago I began a search for a quick and simple way to deploy those now retirement assets that would provide income, safety, and near no maintenance going forward.  That search led to finding three portfolios that would fit retirement investing for those needing such. 

Let's first note in this era of very low interest rates and our thinking this period has some years to run, likely more than a decade owning bonds is deadly to principal and certainly income generation.  When interest rates do up, which they will at some point, existing bond values go down.  Therefore we did not look for anything involving bonds. Thus we settled on a stock and cash portfolio.  Below are three options that should suit any retirement investor.  We also highly suggest one avoid any fund or ETF that concentrates in any sector or tries to time the market.  

For those needing more income and less growth Vanguard's High Dividend ETF suits nicely. VYM is a broad based stock ETF , 407 holdings, with emphasis on large and growing companies who produce a steady stream of growing dividend income.  The current yield is just over 3%.  These companies rarely reduce their dividend even in recessions and raise them when business is good.  Your investment might decrease in value, but recovers nicely in economic expansions.  The stocks here are solid large cap companies that have staying power. This is an all in fund for most retirement people if one keeps a cushion of cash on the side.  The cash can be invested in the Federal Money Market Fund which offers a current 1.56% yield which is quite good in these times.  

For those wanting equal parts growth and yield Vanguard's 500 Index ETF is perfect.  VOO includes the largest 500 companies in the US and yields right at 2%.  Like the above ETF you get solid and growing yield with more emphasis on growth and less taxable income until you need it.  This is the safest ETF out there and combined with the Federal Money Market fund mentioned above will give one steady income and advancing appreciation of assets.  Most people need to be here. 

For those wanting a more tax efficient ETF Vanguard's Growth ETF is the one.  VUG again rests on large cap companies, currently 282,  with above average growth prospects and some yield, in this case right at 1%.  Combine that with the Vanguard Muni Market Fund currently yielding 1.1% federal tax free and you got long term growth and good tax efficient yield. 

No need to select some or part of these portfolios just select one and you have little concern about safety going forward and no real concerns about making changes ever.  The only reason to change would be a change in your needs to retirement. Combining one of these ETF's with Social Security and any pension should take care of your income needs and is inflation protected going forward.  

The Animal Spirits are strong in this One.

As of this summer we have been trading stocks, bonds, and options for 40 years.  Seems like just yesterday we took the dive into our first investment security which was not a CD or savings account.  The first security was a $5000 NC municipal bond which paid a then outrageous 10% plus.  Seriously it was during the huge increase in interest rates the Fed was pushing in an effort to tame inflation in the late 1970's.  Of course the bond got called in mid 1980's as rates came down but at that point we were already into stocks and options trading and never looked back.  

The animal spirits were raging in us at the time and we allowed experience and yes some big losses to teach us how to trade and how to make money doing so.  Only a very very few do trading well and trust me almost everyone who says they trade and make big money is lying and bragging.   If they do not have an even bigger retirement account than trading account they are  bragging and they are stupid on steroids.  Ask them if they are so good at trading why are they not retired from a day job and trading full time. 

After 4 decades this is our swan song as at the end of 2019 we plan on putting up our trading shoes and move on to better choices.  Eleven years ago we retired much earlier than most people could or would dare to do so.  We will at some point in the next six months wind down our account to the point there is only some long term holdings.  There might be some tag ends trades that will be needed as we move into 2020, but those will be to clean up and close some positions. 

We consider the last 40 years as a blessing as trading and investing has brought us financial security of the select few.   Using some smarts, LOTS of learning and experience over those 40 years also means we are doing something special in leaving at the top of our game.  At this point in our trading career we honestly believe we have learned most of the ins and outs of trading and investing and could make much more going forward.  But as we did eleven years ago we also have considered our mortality and wish to make the most of the years we have left on this earth.   Essentially as we noted going out on top. 

In that our final long term trading assets must be positioned for the future and we have decided in a high concentration in two stocks, which will be about 60% of our entire portfolio going forward.  Those stocks will be Amazon and JP Morgan Bank.  We see these two companies as being the safest with the most capital gains opportunities in the next decade.   We will likely throw in a smallish position in Facebook with the rest of the portfolio.  

For good measure here we will reveal our final trading portfolio stocks for the final six months.  All we consider good choice for traders and individual stock buyers going forward.   Amazon, JP Morgan, Facebook, Apple, AT&T, Verizon, Wells Fargo, and Walmart.  We also currently hold Google and we will likely drop Google shortly due to slower growth over valuation.   If one is looking a good dividend portfolio going forward, JP Morgan, and especially Wells Fargo are good values here.  One we do not hold Dominion Energy would be a good dividend addition as well.  AT&T and Verizon are fairly valued and good dividend stocks as well.  Apple is concerning right now. Walmart a steady eddie.   Amazon is easily the best choice for future growth and JP Morgan is the bluest of blue chips and pays a nice and increasing dividend.  Facebook the best of breed for consumer growth here. 

We will likely continue to post on our blog from time to time, but most about investing, not trading.  If you have questions still feel free to message us as many of you do as I will always be alert to market conditions and the economy since even not trading as Warren Buffet has suggested the best portfolio going forward is a high concentration in the S&P 500 index and some cash.  The only question now is can we keep the animal spirits in check after January 2020 as the it is strong in this one. 

Why we call Johnston County NC Home.

We are not mercenaries as many in our former occupation tended to be,  despite having lived in seven towns in North Carolina when we live somewhere we make it our own.  We still share friendships and emotional attachments from all seven places we have lived in this state.  So when we moved to Johnston County NC over a quarter century ago we put down roots.  However we had no idea we would be here now over a quarter century.   Without reservation we can say today we are glad we stayed.  As one says about pets, this is our forever home. 

As some wonder will you be at the dock when your ship comes in?  Well we were standing first in line when our ship came in the early 1990's living and being employed when the economic growth ship docked in Johnston County.  We have held two jobs in the Triangle of which Johnston County is a part and in both we were beneficiaries of the economic boom that is still going on here.  We continue in retirement to prosper from our associations and investments here. That is not to say that the years spend in other counties did not prepare us for the opportunities in The Triangle because they most certainly did.  If for no other reason we learned the most important lesson of all living in places where there was no economic growth and that is problems associated with economic growth are nothing compared to problems of no economic growth.  

Johnston County has been either the fastest or second fastest growing county in North Carolina going on over two decades.  The population has essentially tripled in the time we have lived here.  The once little town of Clayton is about 6 times over in population growth and the largest high school in the county did even exist last decade and now needs expansion.  Indeed we are not the only one who sees this place as something special in which to live and sometimes work.  Yes lots of people live in Johnston and work in Wake.  Commuters make up maybe a third of the work force like we did for some years as the higher pay due to demand for employees dwarfs the issues of commuting. Skill sets are in demand in The Triangle and that remains the driver of higher income here. 

Over the years we have lived in Johnston County the county government here has literally flipped from strong democrat to now strong Republican.  We are proud to say we were there and participated in the birth of that change. The county commissioners have been and are now lead by a fiscally responsible group of Republicans who prioritize spending to meet the revenue from taxes not raised in over a decade.  The officeholders from Sheriff to Register of Deeds to Clerk of Court have been known to return money appropriated by the commissioners to the county coffers at the end of fiscal years. We have build dozens of schools and voters have approved lots of school bonds since the county governance has proven to be a wise spender of those bond dollars and again lived within their means. The result is over 100 people weekly find this county a place to call home.  Wake County has been helpful to our growth by continuing to raise taxes and increase regulations of course that give incentive for many to move to Johnston. 

Our county economic director tells us often the biggest impediment to his recruiting business and industry is lack of people to hire.  Our local community college is all in on training for anyone who needs trained employees as they have in the recent surge of life science industry locations in the county, including a recent $2 billion dollar plus location.  The quality of life for those here and experienced by newcomers can be found in either locating in the upscale Clayton community, finding land in our rural areas, or just finding a home in a small town.  The retail landscape keeps expanding and there are few national retailers not represented here.  One of the most pleasant options for leisure is the easy less than 30 minute trip to Raleigh NC where you can find even more restaurants and retailers.

We tell others maybe the most important thing we did by moving to The Triangle is our son now has found a home and job here and the wealth creation, good paying job, and quality of life benefits gets passed on to him as well.  We do have one regret of living in Johnston County part of The Triangle in that we are now officially senior citizens and frankly do not have another lifetime to live, work, and invest in finally being at the dock when our ship came in.  We invite you to quit complaining about pay, about living conditions, and quality of life opportunities and come find your piece of paradise here too.  You will be glad and your children when grown will be glad as well.