Along with her Grandmother, we added $1500 to her account today and bought her three ETFs; SCHD, SCHV and SCHX. They're all Charles Schwab ETFs that charge very low management fees and zero commissions on both buys and sells.
Here's her current portfolio which is now worth about $2210.---66.6% is in the ETFs--SCHD 14 shares, SCHV 10 shares , SCHX 10 shares, AIG 4.7%, IBM 7.3%, KO 6.1%, LO 9.5% and PM 4% with the balance which is under 2% in cash.
I placed a $10 bet on them to win the National Championship after their AZ loss and before the UCLA game and was given 35 to one odds. Last year I picked three teams one of them being FSU which paid me double digit odds.
And yes I also had Dallas at 20 to 1 so I lost that one as well but it makes the season much more enjoyable.
Even if she were to be put in a rest home, even with a 50% market correction, she should have enough to live on for 5 years and she'll be lucky to survive another 2. Her most recent illness was Pneumonia and the Doctors prepared her and the family for the worst and that's not the first time we've heard that speech.
All her assets are in a trust so they'll all be passed on to her children. So one could argue that the assets are invested not only for her but her family.
Tax efficient investing and income are her primary concerns which she achieves through equities via dividends and long term capital gains, both of which are federally tax free in her tax bracket. She's not concerned about the ups and downs of the market because she's not going to be around much longer.
I manage 80% of her assets and it's 90% equities, 9% CDs and the balance in cash. This account only supplies her with 40% of her income needs so her other account is invested in an income mutual fund which is slowly being liquidated and should last another 5 plus years assuming zero growth.
Just to stay even she only needs to earn 5% on her assets and over half this amount is already being generated via tax free dividends.
She doubled her position of PB this morning which lowers her per share cost to 40.67/share.
It now makes up about 1.85% of her portfolio.
She bought more today at 24.2 that puts it in a tie with USB as her 8th and 9th ranked holdings.
Grandma likes her dividends because for her, they're federally tax free.
I'm watching a replay of the Rose Bowl The score is currently 11-3 Oregon with FSU threatening.
It looks like it's going to be an excellent game--FSU just scored another field goal so it's 11-6 Ducks.
@ 83.2/share. Raised my position to 2.2% of the assets in this account which increased my prior position by 5 fold.
World economy should improve next year due to lower oil prices which should translate into higher cigarette sales.
In other news- The Ducks and Florida State meet for the first time on Jan 1st at the Rose Bowl. I have the final score 45-24 with the ____ on top. I'll let you know the winner after the game.
May you all have a prosperous and healthy New Year.
Paid 46.1/share. More than doubled my position to 1.73% of the assets in this account. Dividend yield is about 4.8%. I like the yield and their free cash flow numbers.
I also should have some shares put to me in IRA #3 with an option adjusted cost of about 45.7/share this Friday if VZ stays under 47 due to put options I'm short.
Note VZ goes XD in early January which is another reason I sold those Dec 20 put options last month.
She's very ill and I'm afraid she doesn't have long to live thus unless her situation changes she will not buy it back. She never had an IRA so the sell will help her with taxes primarily with the State of Oregon.
Grandma sold out today for tax loss reasons thus eliminating 15% of her taxable year to date gains. She'll also sell the balance of her EZ holdings after options expire 12/20 which takes care of another third of her taxable gains. .
Her account is up about 12% ytd, which is in line with the overall market.
I'll need at least 3 cigars to get through that game.
Added some VZ in IRA #3 today under 47.
It's another good day to be in the arb deal LO today.
I bought into it about 7 years ago because at the time I liked their cable tv, radio and education divisions and they also owned BRK stock. I've just held on to it and may never sell it. It's up about 50% plus dividends since I bought it. I haven't looked at it since the deal with BRK but both companies benefited greatly buy the tax structure of the deal with respect to trading shares of stock that each had in one another.
Too bad for PG that they weren't buying BRK stock because they would have gotten a lot more for their dollar on the Duracell deal.