Its that time of year, where you should be looking at your investment portfolio, assessing your performance, seeing what you did right or wrong and if any part of it needs to be rebalanced.
Its also a good time to assess your tax liability and see if you can (or should) be funding your Roth IRA for last year. Typically, if you’re in the highest tax bracket, you cannot invest in a Roth IRA. It also doesn’t make much sense, since when you retire you might be a lower tax bracket. But in any case, you should be investing in a regular IRA. Up to certain income levels you get a tax credit for these contributions, so its definitely worth more research. You can invest up to April 15th for last year’s contribution.
You might also want to take a look at your life insurance and see if it still meets your needs. You may have had a life event which requires you to modify it.
Since I’m expecting to go to business school in the Fall, I want an evenly balanced portfolio and preferable a no-load Mutual fund with low fees. Typically, you’d chose several funds to balance out your portfolio. I already have a few country-specific ETFs that I’ve short-listed, but I also want a little bit in a fund that’s a bit aggressive and willing to go short if conditions permit.
After some research, I think I’ve found a pretty decent fund which suits my investment mindset. Here’s a snippet from there July 2007 semi-annual report:
CGM Focus Fund held major long positions in the oil service, metals and mining and engineering industries at quarter end. The Fund’s three largest long holdings were Open Joint Stock Company ‘‘Vimpel-Communications’’ ADR, Potash Corporation of Saskatchewan, Inc. and Schlumberger Limited. The Fund was also approximately 8% invested in stocks sold short at June 30 (percentage of total net assets). The short positions were in financial services and regional banks. The three largest short positions were Countrywide Financial Corporation, Indymac Bancorp, Inc. and Fortress Investment Group LLC.
CGMFX returned a whopping 80% in 2007. Except my BHP Billiton, Anglo American and Petro-China shares, most of my portfolio didn’t come anywhere close to these returns. Don’t know if it’ll continue to produce these stellar returns, but so long as Ken Heebner is the fund manager I think it will.