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Let's Talk About: Our New Fund Additions

We came off an incredible year and needed to rebalance a typical 60/40 portfolio as the equity portion got up close to 70%.


Our new investments. Typically we keep 80% of our stock market exposure in the S&P 500, either the SPY, an ETF you can buy throughout the day, or one of the 500 funds from low cost providers like Vanguard, Schwab, or Fidelity. We round out the other 20% with funds that have track records in the 95th or higher percentile over at least 5 preferably 10 years. We have 4 funds we're using this year, Polen (99th percentile), Family Dividend Focus (97 percentile), Morgan Stanley Insight (99 percentile) and ARKK (Innovation ETF). I'm not recommending anyone go out and buy these funds without reading the literature and prospectus, as these are all risk positions. These are all fairly similar funds in that many of the stocks they hold are similar. We are continuing to avoid markets we don't understand like Europe, Asia, and Emerging Markets.


Our fixed income portfolios are more complex, so if you need income best to speak with us. Our municipal portfolios today are being created just around 3% tax free so to me that is your baseline (what I consider risk free rate of return).


We came off an incredible year and needed to rebalance a typical 60/40 portfolio as the equity portion got up close to 70%. The only headwinds I see are out of Washington, the economics in the US remain strong.


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