I am providing more on the “Sleeve System” to investing. Seems others have found good value in a sleeve type management system besides myself.
bee who has been a long time poster on the board and made me feel welcome when I first arrived (as some were rude) many years ago (back in the Fund Alarm days) recently sent me some information, she found, from FMD Capital about their using a sleeve type management system for income investing. My system is geared towards income plus capital appreciation as my system contains an additional growth area. In this way, capital gains (if needed) can be taken in addition to income generation to help supplement the portfolio's monthly distribution. Currently, I draw form three to five percent annualy form the portfolio and have been able to grow principal over time at these distribution rates.
The FMD Capital system is definitely worth the read and it is linked below for your reading enjoyment. It is titled, "The Strategic Approach to Income Investing" and is written by Michael Fabian. http://fmdcapital.com/wp/wp-content/uploads/2013/09/FMD_Income-Investing.pdf
Thanks again bee ... It is most appreciated.
I have also posted below how I have my sleeve system organized by area and by sleeve with current holdings.
Here is a brief description of my sleeve system which I organized to help better manage the investments that were held in five accounts. The accounts consist of a taxable account, a self directed ira account, a 401k account, a profit sharing account and a health savings account plus two bank accounts. With this I came up with four areas. They are a cash area which consist of two sleeves … an investment cash sleeve and a demand cash sleeve. The next area is an income area which consists of two sleeves. … a fixed income sleeve and a hybrid income sleeve. Then there is the growth & income area which consist of four sleeves … a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. An finally there is the growth area which consist of four sleeves … a global sleeve, a large/mid cap sleeve, a small/mid cap sleeve and a specialty sleeve. Each sleeve consists of three to six funds (in most cases) with the size and the weight of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds and the amounts held. By using the sleeve system one can get a better picture of their overall investment picture and weightings by sleeve and area. In addition, I have found it beneficial to xray each fund, sleeve, an area and the portfolio as a whole. Again, weightings can be adjusted form time-to-time as to how I might be reading the markets and wish to weight accordingly. In addition, all fund distributions are taken in cash and are diverted to the cash area of the portfolio.
Below is how I have it broken out with current holdings.
Demand Cash Sleeve… (Cash Awaiting Investment Deployment)
Investment Cash Sleeve … (Savings & Time Deposits)
Fixed Income Sleeve: ITAAX, LALDX, THIFX, LBNDX, NEFZX & TSIAX
Hybrid Income Sleeve: AZNAX, CAPAX, FKINX, ISFAX, PASAX & PGBAX
Growth & Income Area
Global Equity Sleeve: CWGIX, DEQAX & EADIX
Global Hybrid Sleeve: CAIBX, IGPAX & TIBAX
Domestic Equity Sleeve: ANCFX, FDSAX, INUTX, NBHAX, SPQAX & SVAAX
Domestic Hybrid Sleeve: ABALX, AMECX, CFIAX, DDIAX, FRINX, HWIAX & LABFX
Global Sleeve: ANWPX, PGROX, THOAX, DEMAX, NEWFX & THDAX
Large/Mid Cap Sleeve: AGTHX, SPECX, IACLX, VADAX, HWAAX & BWLAX
Small/Mid Cap Sleeve: IIVAX, PCVAX & PMDAX
Specialty Sleeve: CCMAX, LPEFX & TOLLX
I wish all ... "Good Investing."