OZKAP - John's December 2024 Retirement Income Update: Income Increased By 5.9% FY-2024

2025-02-08 09:00:00 ET

Summary

• John’s portfolio adjustments included selling Toronto-Dominion and Prologis, reallocating to safer investments like Rexford Industries Preferred Series C, and increasing cash positions.
• Despite some losses, John's Traditional and Roth IRAs saw overall gains, with notable trades in Lowe's, Bank OZK, and Westrock.
• Income generation remains strong, with a 5.92% increase in portfolio income year-over-year, ensuring John's RMDs are met without selling shares.
• The strategy focuses on stable yields and minimizing losses, accepting lower capital appreciation compared to the S&P 500 and DJIA.

Similar to Jane's Retirement Accounts, John made a handful of purchases while eliminating holdings in Toronto-Dominion ( TD ) and Prologis ( PLD ). John has amassed a large cash position as we re-allocate funds to safer investments, or at least those that appear to have potential upside. For more detailed thoughts on TD, please reference my article Jane's November 2024 Retirement Income Update: Closing Out Positions In The Financial Sector . As for Prologis, it's not that I have a problem with the company, but that the position was limited in size and limited in upside. We have had limit trades set to add additional shares under $100 per share, which hasn't occurred since the end of 2023.

Given that John is retired, and the income generation is even more important than it would be to Jane (John is six years older than Jane) we decided to shift exposure from PLD to Rexford Industries Preferred Series C ( REXR.PR.C ) where we can maintain exposure to the high-quality industrial REIT segment while locking in a 6.50% yield....

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