Portfolio Seven Updated Feb 2018, and It’s Tax Time

Portfolio 7 is 3 1/2 years old.  The beneficiary contributed $1500 and the trustee $3000 for a total of $4500.  The current value is $5991 for a gain of $1491 or 33%, or about 14% / year when adjusted for the timing of cash flows.  Go here for portfolio detail or go to the link on the right.

During 2017 we sold Spirit Airlines (SAVE) for a long term capital loss of $84 and had dividends of $40.  The portfolio is doing well, with holdings in BABA (Alibaba) and MA (Mastercard) doing very well.  The portfolio has mostly recovered from early February market activity.

Portfolio Six Updated Feb 2018, and It’s Tax Time

Portfolio Six is 5 1/2 years old.  The beneficiary contributed $3000 and the trustee $6000 for a total of $9000.  The current value is $10,716 for a gain of $1716 or 19%, which is 5% / year across the life of the portfolio.  Go here to see detail, or use the link on the right.

We had $157 in dividends and a sale of TTM for a long term gain of $35.  The portfolio has bounced back from February market activity and is doing OK.

Portfolio Four Updated February 2018, and It’s Tax Time

Portfolio Four is 8 1/2 years old.  The beneficiary contributed $4500 and the trustee $9000, for a total of $13,500.  The current value is $18,309 for a gain of 36%, which is 6% / year adjusted for the timing of cash flows.  Go here for details or use the link on the right.

For tax purposes, during 2017 we sold 2 stocks, Devon (DVN) and Spirit Airlines (SAVE) for $465 in long term capital losses, and earned about $297 in dividends.

The portfolio is doing pretty well and has bounced back from recent market losses.

Portfolio Three Updated February 2018, and It’s Tax Time

Portfolio three is 10 1/2 years old.  The beneficiary contributed $5500 and the trustee $11,000 for a total of $16,500.  The current value is $23,251 for a gain of $6751 or 41%, which is 5.6% / year when adjusted for the timing of cash flows. Click here for details or use the link on the right.

During 2017 there were no sales and there was dividends of approximately $322.  The portfolio is generally doing OK and has bounced back from the recent market activity.

Portfolio Two Updated February 2018, and It’s Tax Time

Portfolio Two is our second longest lived portfolio, at 13 1/2 years.  This portfolio is unique because the individual stocks have been sold off and replaced with ETF’s and a CD.  See the details here or at the link on the right.

The beneficiary has invested $7000 and the trustee $14,200 for a total of $21,200.  The current value is $38,428 for a gain of $17,228 or 81%, which is 7.7% a year when adjusted for the time value of cash flows.

Walking through the detailed transactions often helps you to find items you’ve overlook – we noted that the biotech ETF IBB had a stock split (3-1) in December 2017 so I have been understating the value of this portfolio by almost $2000 since that time on my consolidated view.

There were no stock sales last year so the only tax impacted item is dividends which were approximately $632 during 2017.

The portfolio is doing well.  It is interesting to see that the VEO ETF has returned 33% including dividends since we’ve owned it but the HEFA ETF has returned 19% including dividends… the difference is due to the 10% or so fall in the US dollar vs a basket of other world wide currencies.  HEFA is hedged so you get returns in original currencies while VEO also includes the net effect of the dollar on returns (which magnified returns in this case).

 

Portfolio One Updated February 2018 – And It’s Tax Time

Portfolio One is our longest lived portfolio, at over 16 1/2 years.  The Portfolio began right after 9/11.

The beneficiary has contributed $2000 (net of withdrawals) and the trustee has contributed $16,000 for a total of $18,000.  The current value of the portfolio is $43,441 for a gain of $25,441 or 141%, which is 7.2% / year adjusted for the time value of cash flows.

Portfolio One is the most advanced in that 1) I’ve transferred the account over to the beneficiary 2) I have switched to an “agent” mode where I can still make transactions like buys or sells (and this still benefits from my free commissions) 3) the beneficiary is starting to “draw down” some of the assets from the portfolio in order to fund purchases (capital assets and the like).

Go here for a summary of Portfolio One or click on the link on the right.

There were three sales last year (BOX, KO, TATA) and one purchase (NVDA).  Generally the portfolio has done well, although we (obviously) sold far too earlier on AMZN and MSFT.  The three sales had a net long term gain of $948, which will be subject to capital gain taxes.

It is important to recognize the positive impact of dividends on a portfolio like this – to date it has earned $6894 in dividends and $805 in 2017.  When you just look at stock prices against original purchase cost you miss the significant impact (over time) of dividends.  One of the major purposes of going through all this work on the portfolio is to align dividends with the stocks that drove the dividends, to see total returns.

The portfolio is generally doing OK; like everyone else we had a scare when the stocks went down in early 2018 but they’ve (mostly) come back since then.  In an earlier post we discussed moving some of the funds into cash / gold to reduce overall portfolio risk.  This is still being considered.

Portfolio Two Updated August 2017

Portfolio Two is our second longest lived portfolio.  This portfolio has been converted to ETF’s and a CD.  Beneficiary investment is $6500, trustee investment is $13,000 for a total of $19,500.  Current value is $34,290 for a gain of $14,790 or 76%, which is 7.8% over the life of the fund annualized.  Go here or to the link on the right for the portfolio detail.

This portfolio is different from the others in that there is a 1.55% CD for $10,000 and the rest are ETF’s.  The largest ETF is VTI (US total index) with VEU (all world ex US) and HEFA (non US, hedged).  We also have a small position in IBB for biotech.  All seem to be doing well.

It is a symptom of ZIRP that our CD returns less than the US or European stock funds, which are around 2.5% / year.