What the Money Guy Said

It looks like Mrs Mama and I are in pretty good shape in terms of saving for retirement. Right now, we have about $135k between us, in 401ks and various flavors of IRA. And we each sock 15% into our 401ks, although we haven’t funded IRAs in the last 2 years.

That said, the Money Guy made some suggestions for tweaking our investments, and I’m thinking about how much of his advice I should and will follow.

  • We are overexposed in international stock mutual funds
  • We also have too much invested in large cap company oriented mutual funds
  • We don’t have enough in small cap mutual funds
  • We don’t have enough in real estate mutual funds
  • We don’t have enough in stable/income/bond funds to protect ourselves in the event of a severe downmarket
  • We own too many individual stocks

Out of this so far, I’ve made a couple of changes. I sold:

  • 20 shares of KSS (Kohls) for $1,554.22, on an initial investment of $1000.
  • 45 shares of EAT (Brinkers) for $1,507.77, also on an initial investment of $1000.
  • 24.387 shares of OAKLX for $828.42, on a rollover IRA investment left over from an old 401k, basis $670.33. (No, that’s not an individual stock, but I think I should get rid of any asset I have that is less than 1% of my portfolio. This is going to be a phased-in process.)

I also have limit orders open to sell my 66 shares of PFE (Pfizer) at a loss of about 25%.

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