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msf has already pointed out the lack of advantages of the AO_ family when I noted their simplicity, but they too (AOA, AOR, AOM, AOK) address some of these concerns. Maybe. e.g., https://www.ishares.com/us/products/239756/ And I believe others have pointed toward various target-date and glidepath offerings.
I believe the difference between the three fund portfolio as proposed by Taylor and the Fidelity fund cited isa matter of weighting.15% bonds as in the Fidelity fund is probably fine until sometime in the 40s but is probably too aggressive for somewhat older investors like Taylor
Aside from what may be less money coming into the houses for investment, are the large number of boomers who will continue to click over into the age 70.5 required minimum distribution mode. This money will likely be spent into the economy somewhere and not likely find its way back into taxable accounts for investment.
FYI: Lower corporate tax rates and regulatory changes are all good news for small companies. These funds are your best bets for investing in microcaps. Academics have long claimed that the smallest stocks should beat the largest, because investors must be compensated with higher returns for the additional risks of investing in tiny, unseasoned businesses. Regards, Ted https://www.barrons.com/articles/big-opportunities-in-tiny-stocks-1530902448?mod=hp_highlight_1
FYI: Vanguard Group is attracting a lot less money from investors this year compared with 2017. Turns out, the mutual fund giant’s not alone. Vanguard, the world’s second-largest money manager, collected $138 billion in the first half of 2018, down from $237 billion in the same period a year ago, according to the firm. That’s a decline of 42 percent. By comparison, total U.S. fund flows -- money going into exchange-traded, active and passive mutual funds -- fell roughly 50 percent, according to Bloomberg estimate Regards, Ted https://www.bloomberg.com/news/articles/2018-07-06/vanguard-isn-t-taking-in-as-much-money-neither-is-anyone-else
FYI: When it comes to where Americans put their money, few firms have the name recognition, loyalty, and track records that Fidelity Investments and Vanguard Group do. Both came to prominence in the 1970s, and have dominated America’s savings since then. Vanguard has more than $5 trillion in assets under management; Fidelity directly manages $2.5 trillion, and has nearly $7 trillion under administration (in its brokerage, retirement plans, and other accounts). Regards, Ted https://www.barrons.com/articles/sizing-up-fidelity-and-vanguard-managers-1530889346
I suspect Heebner got burned this year most by his retail long short bets and his mining ones. I'm looking at the reports and in December of 2017, he was long Walmart, Skechers and Best Buy and short Netflix and Amazon: https://sec.gov/Archives/edgar/data/60335/000006033518000005/cgmncsr12312017doc.htm Those specific retail bets have disappeared in the March 2018 report: https://sec.gov/Archives/edgar/data/60335/000006033518000023/nq033118doc.htm Heebner wouldn't be the first one to die on the Netflix/Amazon short sword. Meanwhile, mining continues to do poorly this year. My advice to you if you want to continue to hold onto it is to watch it like a hawk and see if you agree with the sector bets he's making. To give you an idea Netflix is up an insane 107% this year, while Skechers is down about 18%.
FYI: The fund industry's trade publication, Ignites, reports that a startup is providing 401(k) plans with a difference. (No link, paywalled.) Rocket Dollar's offering "enables you to invest beyond traditional stocks and bonds." Rocket Dollar 401(k) plans enable their owners to buy cryptocurrency, rental properties, and venture-capital funds. Perhaps they wish to make small business loans. When it comes to possible investments, "the sky's the limit" for those who board the Rocket Dollar...rocket. Regards, Ted https://www.morningstar.com/articles/871895/should-401k-plans-embrace-alternative-investments.html Rocket Dollar Website: https://rocketdollar.com/
FYI: As interest rates rise, investors have scrambled to protect their portfolios. That's the best explanation I can come up with for why assets in the $1.23 billion iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) rose a whopping 35% this week, the largest increase any ETF with more than $200 million in assets under management saw in that time period. Regards, Ted http://www.etf.com/sections/features-and-news/etf-week-short-bonds-soar-slqd
2 funds in above list weren't around at the time of the financial crisis. As per MFO, these are there DD numbers ETIHX -37.7% DMCRX -28.9% DD's for the rest... AOFIX -49.9% LAGWX -54.5% WAMCX -62.6% MPEGX - 63.2% PHSKX -77.8% PTSGX -49.5% PXSGX -46.5% BIOPX -48.8% Recently, Dr Snowball in his running commentary hinted about the amount of information overload we get on daily basis. I'm adding to that overload. Hopefully, I'm actually improving it. The point of the article beats me. If I want fireworks knowing I can lose 77.8% of my principal, might as well buy Bitcoin at these levels. SPAM is SPAM. Doesn't matter if it's on MFO. I do not need to have EVERY single link on the internet posted on MFO. Every google search from my finger tips is going to end up on MFO. NOT!!!
FYI: Amplify ETFs recently filed for a fund that will look to protect investors from those rare, “out-of-nowhere” market downturns that are often referred to as “black swan events.” The Amplify BlackSwan Growth & Treasury Core ETF (SWAN) will track an index that invests primarily in Treasury securities and LEAP options on the SPDR S&P 500 ETF Trust (SPY). Regards, Ted http://www.etf.com/sections/daily-etf-watch/amplify-plans-black-swan-etf
FYI: 3 Is Company Three colors: red, white, and blue. Three funds: Vanguard Total Stock Market Index (VTSAX), Vanguard Total International Stock Index (VTIAX), and Vanguard Total Bond Market Index (VBTLX). According to author Taylor Larimore, those are all that an American investor needs. Regards, Ted https://www.morningstar.com/articles/871546/the-3fund-portfolio.html
