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Re: Toofuzzy post# 1129

Saturday, 05/08/2010 3:55:22 PM

Saturday, May 08, 2010 3:55:22 PM

Post# of 1177
Hi Toof, Re: Structure of retirement account.........

1) There were two reasons why I changed from Industry to Style. The first one is that there wasn't enough "criticl mass" to get the level of diversification I desired for the account in sector funds. To get that diversification I would have needed probably 13 to 18 separate ETFs/CEFs which would have subdivided the Pizza into too many slices.

The second was the reading of the Ultimate Buy/Hold Strategy article. I liked its simplicity and diversification. I also thought that any Buy/Hold strategy worth its weight would probably benefit from the use of Lichello's plan. My thought was that it would be an interesting experiment to see if AIM could enhance UBHS over time and cycles.

I started the restructuring in the later part of 2007 but never got it completed before the income side of the account headed downward. Therefore, I had purchased all the new pieces, but not sold enough of the income side to fully fund proper cash reserves for the new slices. So, for the first year it was very close to UBHS in that it was under funded with cash.

2) I originally purchased EEM but switched to DEM; purchased IJS but switched to DES; bought IJJ but switched to DON; bought EFV but changed to DTH; and last, bought NRO but changed to VNQ. Most of these changes occurred in January of 2009 when I finally completed the proper balancing of the account closer to the UBHS.

There's now ten pieces plus cash. I'm contemplating one more change should the opportunity present itself. I'm not exactly sure how it will work. More on that later.

Best regards,
Tom





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