investments

Corona Virus impact on my investments nearly cured. What do do now?

The impact of Corona Virus has been almost completely mitigated on my retirement investments. I will tell you a story of where I started and how I got here and where I want to go.

I’m 55 years old and I have a neurological condition that might force early retirement. Right now therapy and drugs seem to keep me going and I have a good paying high technology job in Missouri. The industry of my employer is health insurance.

Before the Corona virus market impact I had $265,000 in two retirement accounts. One Roth, one conventional IRA. I was over invested in the high dividend energy industry and was over exposed.

The week of March 20, I decided I needed cash to increase. I reduced my holdings of GE, Seagate Technologies, United Airlines and my few profitable plays in the energy field.

I was overexposed to stocks like ALRP (A coal producer), MMP, HESM, CNXM and DKL. I felt the energy sector was at rock bottom and wanted some cash to inject and lower my average price per share.

For example I lowered my cost per share of MMP to $43 a share, I got HESM and a few others like this down to a very reasonable price per share.

Then the market rebounded. When the exposed energy stocks hit break-even I dumped a large percentage of my holdings. When the profit hit 25% I dumped 50%,

Suffice it to say I’ve reach a state where I’m not overexposed in energy any more. I’ve got some XOM Exxon-Mobile at $41 that is paying an 8% dividend.

Retirement is at $244,000 a market correction away from where I was in February.

So I’m at an inflection point. I believe my retirement income strategy will permit a safe retirement in Israel with as little as $500,000. My basic monthly expenses in Israel is around $2,000/month lets say $500 per month for unexpected issues. This includes health care.

There will be a follow up articles with actual calculations next. Basic premise here is the Corona Virus damage is in the rear view mirror. Now I’m formulating a new new strategy.