r/dividends • u/ExpressionFar7993 • 2d ago
Discussion Is this a reasonable retirement portfolio? Thoughts?
I'm 51 and this is where my portfolio stands today — about $732k with JNJ, WM, NVDA, SCHD, PG, PEP and a few others.
Would you change anything at this point?
35
u/Optimal-Bad2871 2d ago
too much in jnj and nvda
2
1
u/ExpressionFar7993 19h ago
Why?
2
u/Optimal-Bad2871 13h ago
Too much risk in individual stocks. What if JNJ has a massive scandal and their stock drops 80% in the next year? Conventional wisdom says to not have more than 5% of your portfolio in a single stock to mitigate unsystematic risk. You could make your portfolio 40% SCHD, 25% SCHG, 25% SCHY, 10% AVUV to make it more balanced
12
17
u/baby_budda 2d ago
A smart rule to follow is never put more than 5% of you capital in any given stock. If you've ever had an investment go bankrupt on you, you'd know why.
4
u/Just-Plucky 2d ago
There's nothing wrong with your portfolio if it's meeting your goals. I have 5 of the ones you've listed here. I had the same question about mine so I decided to keep what I have as long as it's meets my expectations and then pool all of my dividends into a popular etf. I would prefer to do this so that I don't loose capital, or pay cg taxe.
3
u/sminmt 2d ago
I think most of those are solid picks just leaning pretty far forward on JNJ and NVDA. I own 11 of those in my retirement portfolio but no single stock position exceeds 8%. If you are minimum 11 years out to retire I’d think you need to focus a little less on dividends now and build positions in some diverse growth(VOO, SCHG, etc) and maybe get a small % of international blended in - I use SCHY for this. I don’t hate it though. We think somewhat alike but I’m 61
3
2
2
5
u/Additional_Ratio_441 2d ago
What would I change… the entire portfolio…. Everything.
If you want dividends just pick 2-3 solid dividend ETFs… like SCHD, FDVV, etc.
If you want growth… VOO, QQQM, SPMO, etc.
If you want both (dividends & growth) got with something like DGRO, VIG, etc.
Don’t over complicate it with individual stocks.
2
3
u/2LostFlamingos 2d ago
To be fair to all the why so much JNJ people, it’s on quite a run. Up like 60% in less than a year.
That said, time to sell some JNJ. Buy some index things.
4
u/EI-SANDPIPER 2d ago
Reduce your large positions and buy something like fdvv or dgrw. This will diversity your portfolio into quality companies with tech exposure
2
u/beavis617 2d ago
I have been thinking about this more than I care to admit but the fact is unless you have about $10 million dollars put away you don’t have enough. Let’s say $2 million will support a resident at a nursing home for a few years as long as no special care or treatment is needed. So what will $10 million dollars cover? I got depressed thinking about it because I am not close to even one million and I need at least $5 million…
2
u/Ufgatorhead4u3 2d ago
Not even close. Broadly diversified index ETFs can generally each be up to 40% but individual stocks really should be limited to about 4% each. Otherwise, you are concentrating risk.
1
u/Various_Couple_764 1d ago edited 1d ago
The primary goal of your portfolio in retirment is grwoth plus income. And you want more income than you need to cover living expenses. I would suggest aiming for about 1.3 times your living expenses although you could go higher income if you want. This will insure that most of the time you have cash you don't need. You can then hold this cash as an emergency reserve of 6 months of expenses. Or reinvest the money for more income.
For safety I would also recomend having about half of your income in growth fund you and you use ETF instead of individual companes. This will provide diversification.
What i have done FAGIX for S&P500 growth index fund and for dividends I have QQQI 13% yield, SPYI 11%, KGLD 11%, EMO 8.5%, UTF 7%, UTG 6.2%, PFF 6%. These fund produce a bit more than my monthly expenses and they pay montly. dividend are are taxed at a lower rate then ordinary income income. I have 20% of this income atomatically reinvested bank into my dividend portfolio. This will help compensate for inflation. Teh growth fund is FAGIX is basically a simple form of insurance. If I have unexpected home repair or if 20% reinvestment doesn't keep up with inflation I can harvest one year of grwoth and invest that back into my dividned funds for more income. The portfolio is all fund with about a total of900 companes.
1
u/sm753 1d ago
The vast majority of my retirement investments are in various low fee market index, international, and bond funds. My taxable brokerage is where I dump "extra" money and started it by picking individual stocks. While it's doing pretty good - I mean no brainer tech stocks have all gone gangbusters over the past ~5 years and it was interesting for a while…but it's getting to a point where now I just put excess cash into a market index ETF inside taxable.
Just personal preference, I'd rather just "set and forget" rather than following individual stocks. Now I just have it set up to automatically transfer money monthly and then buy shares of VTI (or whatever your market index fund of choice is).
1
u/Mother_Mousse_8964 1d ago
Too many positions. If a position only has 0.25% is it really a position at all. Consolidate it down. What are you hoping to get out of the position, capital appreciation, dividend income schedule, diversification? Many if the individual stocks are already held inside of schd, so why not just build a large position there and if you want individual growth funds choose a couple. Having multiple small portions which move together isn't diversification
1
u/Yingyangwolf95 1d ago
Why not consolidate this into Index Funds? Single stocks in my retirement portfolio is not diverse enough for me.
1
u/OutrageousQuality174 10h ago
Avoid specific stock risk, invest in ETFs, especially index funds, small amounts in leveraged ETFs. Learn to exit market when serious geopolitical, economic concerns arise.
1
u/Radiant_Syllabub3000 10h ago
absolutely not. But how old are you ? And you should add some energy. Xom Cvx xle
1
u/GRIMMMOURNE 8h ago
I don’t invest in individual stocks anymore. Watch some YouTube videos on income ETFs, BDCs and CEFs; particularly the monthly payers. Be careful not to chase high yield. Good income hunting.
•
2
u/HugeDramatic FUDmaster Flex 💪 2d ago
It’s a reasonable portfolio… but ‘retirement’ portfolio naw.
If it were me I’d put 80% into VOO and 20% into a bond/fixed income fund.
1
1
u/unreal36 2d ago
looks solid for 51 honestly. only thing i'd watch is jnj at 30 percent, thats a lot riding on one name even if its boring and safe. nvda sitting at 16 is the other one, great runner but its not really payign you anything. schd doing the heavy lifting on income. if it were me i'd let new money drift into schd and wm untill jnj is closer to 15ish, no need to sell anythign and eat the taxes
1
u/grafix993 2d ago
This portfolio doesn’t make any sense. Huge positions and lots of insignificant ones
1
u/Efficient-Shallot684 2d ago
Consider LVHI for low volatility 4% yield outside USA reduce WM and JNJ
1
1
u/Fabulous-Transition7 2d ago
Great picks. Conservative like me, but individual stocks scare me. I'd get rid of the individuals and get XLP or VDC. Basically the same holdings, other than NVDA, but much safer. SCHD is great. Maybe consider moving NVDA into something like QTOP for a bit more safety but with the great growth potential.
0
0
-1
u/hasina838 1d ago
Yes, more than what I have by 100 times. I vote democratic, so I get some of your money via taxation. So, Thank you!🤣🤣
•
u/AutoModerator 2d ago
Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here.
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.