DINKs Buy Stocks, Silver and Savings Bonds

by Dual Income No Kids on February 18, 2009 · 0 comments

Hi All,

Well, its Wednesday. I’ve been hunkered down over the past couple of days taking care of non-blogging related business. Part of that has been attending to our own bottom line. In fact, I’ve been buying a fair amount of assets these days, so I wanted to explain everything in a post for our readers.

We’ve been doing some portfolio rebalancing. Last week, we dumped our holdings in the Advantage Energy Fund (here). This made approximately $9,600 in cash available. So, I thought through a bunch of available options and bought the following positions:

1) Vanguard Total Bond Market Index Fund, 419 shares

2) Hospitality Properties Trust, 100 shares

3) Coca Cola Corporation, 60 shares

4) General Electric, 55 shares

5) Evergreen Utilities & High Income Fund, 56 shares

In the past we’ve been highly focused on monthly income. This strategy has proved to be problematic. First, in trying to get the maximum yield possible on our stocks, we ended committing heavily to companies in the energy industry. Between the recession and declining oil prices, this lack of diversity meant our stocks got it especially hard.

So, this allocation is a departure from our previous strategy. We are looking to move away from relying on energy, and instead to increase our diversity and safety of principle.

We’ve looking to increase the overall diversity of our portfolio by adding more mutual fund, REIT and bond exposure. Safety is also a huge issue. The next two quarters are going to be rough. Between job losses, the declining economy and the failing bank sector, it makes sense to put more funds into large relatively safe blue chips like Coca Cola and General Electric.

So that’s the story with our brokerage accounts.

Now, in terms of our available cash on hand. I’ve been buying savings bonds and silver. This is mostly because they’re cheap and fun. Buying physical silver costs about $20 an oz and savings bonds are $25 for the series EE. They are the sort of assets one can get from scraping together loose pocket change and whatever is leftover after an ATM withdrawal. Also, the design on the physical silver pieces is attractive and getting the paper bonds in the mail helps me to feel that we’re making financial progress. Here is a picture of our most recent acquisitions.

So, to wrap this up. Many of our readers are astute investors and are generally better than average in personal finance and investing topics. If you have a view on any of the investments mentioned here, please do make your opinions heard.

Thanks,

James

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