Time for Planning

18 Dec 2013 13:07

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At the start of November I made my last purchase of 2013 with Ensco Plc. At this point I am fully invested into my DGI portfolio and have no additional cash. Nothing to do for a few months but sit back and collect dividends while determining what to buy next.

This downtime comes a great moment that allows for re-evaluation of all my financial positions, goals, and strategies for the coming years. A quick glance and I noticed my 401K is grossly deficient with a cash position leaving me exposed to risk so my first goal for 2014 is to return to a 10% cash position within my 401K.

Over the next few weeks I'll start slaving away looking at expenses (both current and retirement) and remaining debt to determine what my savings rate/balances should be.

Another area I will take time to analyze will be my exposure to risk in all of my investments. For my DGI portfolio I feel pretty confident on my diversification but there are a couple of areas I still need to get into but just do not have the money.

One area of risk I desperately need to plan for is the scenario of a layoff. Where I work there are already rumors spreading of a significant first quarter 2014 layoff and even if I miss that one I can foresee annual layoffs up to 2018. I hope that my DGI portfolio can buffer some of the loss but my current portfolio does not even come close to my monthly salary. As I am the sole income earner for my family this would be devastating! I will need to think long and hard on this one.

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