$400,000 portfolio, too many holdings

(Money magazine) — When Susan Carson and Laura DeLallo get interested in something, they pursue it wholeheartedly.

In their twenties, each tried to hit it big in music with their own rock bands (tours and CD releases included). When they wanted steadier jobs, they dived into new fields: Carson works in trading and operations for an energy company; DeLallo, an editorial specialist at a financial services consulting firm, is pursuing her MBA.

Married in 2008, they now have financial security — they earn $225,000 a year and have almost half a million in savings — and a new passion: the markets. “We like to read through the news and see if we can find an upcoming trend,” Carson says.

Trouble is, their enthusiasm is getting the better of them. Both have sprawling portfolios of individual stocks, exchange-traded funds, and mutual funds that are proving hard to manage — nearly 50 separate investments in total. “I had a lot more time to pay attention to my investments a year or two ago,” says DeLallo.

Moreover, they’ve seen the downside of market timing: In 2008, believing property values had hit bottom, they bought their house for $508,000. Today the four-bedroom is worth only about $380,000 and also needs some repairs. Continue Reading…