$51,964.24 | Roth IRA Update

Hey guys,

It’s been almost two months since I’ve written a portfolio update for my Roth IRA. Admittedly, the downturn in the market has made it a bit less exciting to give portfolio updates.

However, I’m here to update you guys to show you what my portfolio has done in the last few months. I haven’t calculated my own return vs. the S&P 500 since my last update, so I’m excited to see how I’m doing.

Here’s where my balance stands as of today.

My overall balance is higher than my last update, but I’ve also made more contributions during the last few months, so my suspicion is that my overall investment return is a bit lower than my last update.

Each of my portfolio slices has behaved very differently this year – take a look at the below screenshot that captures the quarterly performance of each of my portfolio slices.

This year, my growth stocks have been getting crushed, while the stocks in my stable yield portfolio slice have remained strong.

This is much different return-wise than my portfolio last year where the stable yield slice was not the highest performer. That performance dichotomy speaks to the nerves in the market this year – and highlights the importance of a diversified portfolio with more conservative investments that can tide you over in overall market downturns.

Now let’s get into the specifics of my portfolio’s return vs. the overall market this year.

Total share price appreciation as of May 30th:

  • S&P 500 from Jan. 5th, 2022 – May 30th, 2022: -11.35% (381.80 – 430.66) / 430.66 x 100
  • My Portfolio from Jan. 5th, 2022 – May 30th, 2022: -15.49% ((((51,964.24 – 3,900 – 560.86) – 56,210.80) / 56,210.80) x 100)

Total return as of May 30th:

  • S&P 500: –10.73%
  • My Portfolio: -14.22%

My portfolio continues to underperform the market. I’m a bit more growth oriented, and my stocks that rely on positive investor sentiment about future returns have taken a pretty hard hit. In addition, some of the bigger positions in my portfolio have not done especially well this year.

Positions to note that aren’t doing well include Salesforce, Target, NVIDIA, and Intel. Although, one benefit of selecting a portfolio ahead of time and screening for individual stocks means that I’m more than comfortable continuing to invest in these positions.

One things that’s especially nice about the M1 finance platform is that my dividends from my dividend-paying positions get re-invested in the lowest weight positions in my portfolio. So for example, my dividends from companies like 3M and Dominion Energy get re-invested into Target, NVIDA and Salesforce while their share prices are low. I am more than happy with this trade, because when the market does decide to go up again, my positions should outperform.

I’m not immune to the knowledge that I am underperforming the market here, but I hold out hope that by the end of the year I’ll be closer to its overall return.

How are your guys’ positions doing? Were about five months into the year, so we’re not even half-way done with 2022 and have a while to go to see how our portfolios perform this year.

Happy investing!

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