This blog is written primarily for the beginning or young investor who is just starting their investing career. Beginning with an investment of $500 to $1,000 and adding as much as possible each month, what will this portfolio look like in a few years. I’ve called this portfolio the Franklin and the first blog was posted about a month ago. The portfolio is housed with Schwab and will therefore use commission free ETFs, when possible, with that firm.
Below is the list of ETFs that will form the initial investment quiver. The Max Asset Allocation percentages are my personal choices. You may wish to move all to 100% as you use the Kipling workbook.
Buy-Hold-Sell Recommendations: Using the BHS model and the maximum number of assets set to three (3), the Buy recommendations are: SCHZ, SPTL, and SGOL. The 20% limit on SGOL will push part of the portfolio into Cash or SHV. Follow the next screenshot.
This is still a very small portfolio and that is why I went with 3 assets.
Manual Risk Adjustments: Following the Position Sizing guidelines, I sold 14 shares of SCHB and purchased 1 share of SHV, 1 share of SGOL, 6 shares of SCHZ, and there is one limit order for 8 shares of SPTL.
The regular schedule for the Franklin will come up in a week or so and at that time I will post the performance data. IRR values will be greatly exaggerated as this is such a new portfolio. Again, this portfolio is for the beginning or new investor.