My name is Steve, and I got into investing three years ago when my 25-year marriage ended. Between losing most of my home equity in the Great Recession and a good portion of my net worth in my divorce, I decided I would do my best to salvage my financial future by saving what I could for my retirement. This blog will chronicle my journey, and hopefully along the way provide insight to others about restoring a financial future in the aftermath of a divorce.
I actually have three portfolios, two of which I’ll feature on this blog. My first portfolio is a Growth & Income portfolio. It’s a dividend portfolio to be sure, but I’m not focused on maximizing dividend income at this time. From a planning perspective, I have about 10 years until retirement, so my plan is to increase the yield each year until retirement. This will allow me to invest in lower yielding stocks that still provide strong total return. This is a taxable brokerage account and currently yields 3.1%
My second portfolio a High Yield portfolio housed within an IRA account I started after my divorce. It’s much smaller than my taxable account but I add the allowed $6,500 every year (I’m over 50 so I’m allowed to add an extra $1,000). This is my experimental portfolio that is invested in high-yield securities. It’s currently yielding 5.8%.
In case your wondering, my third portfolio is my rollover IRA where I accumulate funds from previous employers’ 401(k)s. It’s invested mostly in mutual funds and ETFs. Eventually I will likely convert those funds to individual dividend stocks, but for now it serves as a sort of hedge against my individual stocks. Those funds are invested in low-cost index funds, a few sector funds, some bond funds and a preferred stock fund (PFF).
My plan is to update my portfolios quarterly so you can see what I’m investing in. Along the way I hope to have a conversation with others about the picks, and what opportunities I might be missing. Ultimately, I hope that I and others can learn more about investing, and recovering financial from a divorce or other life event that knocks us off our feet. There is always hope.