Asset AllocationIn the past, there have been three areas that I focused on from an asset allocation perspective: 1.) Employer/Company Stock, 2.) International Holdings and 3.) Cash/ Fixed Income Allocation. At the end of 2009, all three were relativity close to my targets. This is something I will continue to monitor and make adjustments as necessary.
2009-Q4 PerformanceThe forth quarter market improvement continued to be kind to my portfolio. After trailing the S&P through June, my income portfolio's performance and the S&P swapped leads throughout the second half. Unfortunately, the year ended while the S&P had the lead. Below are the YTD performances of various categories along with my S&P 500 benchmark (VFINX):
|Portfolio||Wtd. Avg.||2009 YTD||2008|
|Pocket Change (9/08)||14.0%||21.1%||-7.3%|
|S&P 500 (VFINX)||-4.9%||26.5%||-36.3%|
|Income Stocks vs S&P||6.7%||-2.6%||15.9%|
|Income Stocks vs BRK||16.7%||21.7%||11.7%|
Passive IncomeFor Q4/2009 my passive income averaged $920/month, up slightly from the $714/month in Q3. The increase resulted from fewer dividend cuts in my non-income portfolios and stable interest rates on cash holdings. The above amounts include all sources of passive income in my taxable accounts, primarily interest and dividends. It excludes my Roth IRA, 401(k) and blog income (which is not passive).
The next update will be in mid-April. As always, thanks for reading!
(Photo: sanja gjenero)