When the number of stocks you owned has increased in holdings, it will be more difficult to manage. Do you sell all in a bear market or add more in a bull market? This let me to layout a proper structure so you can manage your own portfolio with ease.
A structure portfolio which I consider for a long term holding and low risk model is to have a 70%-30% segregation. This means that 70% of our stock portfolio consists on Dividend stocks while 30% consists of Growth stocks. In layman terms meaning, for a group of 10 counters, 7 stocks is dividend stocks while 3 stocks are stocks that don't pay a dividend but has good potential to grow in the future. This setup, in my own opinion is suitable for those in the 40-50s age range while those below can consists of a strategy of using 60%-40% range. I do not advocate a 50%-50% range as your portfolio are exposing to higher risk.
For those above 50s, you might wanna consider a 80%-20% strategy. While those above 60s, a 90%-10% portfolio is a good model as most will be retiring and they will be consuming what they have saved over the past 30 years of working life.
This structure portfolio which i have lay out is very conservative and even if the market has gone down, you need not worry as you still have dividends income while balancing the growth stocks as it gets hit.
DISCLAIMER
The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.
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