I know I haven’t posted in a while, but honestly there hasn’t been anything interesting to talk about.
Lately there have been some swings in the market. My Roth IRA and other portfolios took a hit, but surprisingly my M1 Finance returns stayed pretty solid. What happened was that while my common stock pie went down in returns, my REITs went up and covered the losses. Additionally, I gained more money in dividends. Although my returns are overall low, they didn’t swing much at all. In fact, I have been increasing steadily.
In one of my first posts, my returns weren’t even 1%. Now they are close to 7%. The slow but steady progress here highlights two of my favorite investment strategies: dividend yields and diversification. Both of these will help you cover your losses in a highly volatile market.
I haven’t dropped or added any new securities. As much as I want to keep buying and selling, seeing what these stocks do in the long run would be wiser. I did however reduce my allocation to my defense stocks to 1% because they have been doing nothing but dropping. I’ll keep them around though so that I can at least buy more of them at a cheap price.
Overall Gains – $109.03 (6.80%)
Market Gains – $88.55
Earned Dividends – $20.48
While this progress has been slow, it has been pretty resistant to market swings and I am glad that I’ve finally broken $100 in gains. The plan is to keep this portfolio for at least five years, then cash out for some home renovations.
If you want to try out M1 for yourself, a broker that is catered towards diversification and keeping your portfolio balanced. Click my link here!
Cheers, and happy investing!