Asset AllocationIn the third quarter, my asset allocation was reasonably close to my target. My philosophy is to buy the best dividend stocks available and adjust my allocation using my 401(k) and other investments, when needed. None of the variances are above my 2.5% tolerance, so I will adjusted them with future purchases.
2010-Q3 PerformanceThrough the third quarter, my portfolio is still comfortably ahead of the S&P, but gave up a little ground. Below are the YTD performances of various categories along with my S&P 500 benchmark (VFINX):
|Portfolio||Wtd. Avg.||2010 YTD||2009||2008|
|Pocket Change (9/08)||12.1%||8.6%||21.1%||-7.3%|
|S&P 500 (VFINX)||-2.5%||3.8%||26.5%||-36.3%|
|Income Stocks vs S&P||6.3%||5.5%||-2.6%||15.9%|
|Income Stocks vs BRK||7.3%||-17.6%||21.7%||11.7%|
Passive IncomeFor Q3/2010 my passive income averaged $1,010/month, up slightly from the $992/month in Q2. The increase resulted from additional investments, dividend growth and from higher income on cash holdings as I moved them from a MMA to short-term bonds. 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-January. As always, thanks for reading!
(Photo: sanja gjenero)