Thursday, April 28, 2011

And so the journey begins..

Today marks day 1 of the 7 year long journey. I am going to be using Google finance portfolio tracker to track my transactions. I have multiple brokerage accounts so it will be nice to consolidate everything in just one tracking system. Here’s what my portfolio looks like right now.




Basically it’s just a pile of cash right now. I already had a few open positions in my accounts (CSCO, ORBC, PDLI, DMLP) so I have decided to just take them at today’s market value towards my initial contribution of $100k. So even though there might be some tax implications when I sell these positions, it should be minimal and I should be able to just ignore that to keep things simple.


Again the goal is to reach $350k in 7 years so I will need to get a CAGR of exactly 19.6%. But the absolutes aside it’s also a good idea to see how your portfolio is doing relative to the market index. I have decided to track my relative performance against S&P500 and to easily do that I have created one more Google portfolio which just buys a $100k worth of SPY (the s&P500 ETF) at today’s market close.




Now one could argue that most people will do a more intelligent asset allocation than just buying the S&P500 index and that will not be an incorrect statement. But I am trying to keep things simple here, and besides the goal has a defined “absolute” target so relative performance comparison is just secondary.


Now let’s make some money!!!!


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