T. Rowe Price Summit Program @Roy, you brought up excellent point. We consolidated our brokerage and mutual accounts a number years ago for ease of tracking to two large brokerages. So we have to reconsider this announcement from TRP since we already invested in a number of their excellent funds. The ability to invest in their institutional shares at $50K is quite tempting, plus other offering. At Vanguard, one can purchase Pimco institutional shares at $25K instead of $
1M (thanks to
@msf). At present, we are evaluating the pros and cons of each brokerages and which one would fit our long term needs. My experience of transfer process with TRP was slow, but that was over 5 years ago.
With regards to Grandeur Peak funds, you can purchase their institutional shares at much lower minimum at many brokerages with a transaction fee. The $ minimum is set at the agreement between Grandeur Peak and that specific brokerages. Since Grandeur Peak funds invest in small to mid cap space, it poses challenges to existing investors when the funds closed, where one cannot purchase additional shares from their brokerages. One can transfer their shares to Grandeur Peak but that is not something I wish to do in the long run.
Also, I am trying to
look at what is under the hood of TRP brokerage but am having issue finding it for comparing to brokerages I am currently using. No luck by calling their customer service.
Needham Small Cap Growth The institutional class, NESIX, has a lower ER than MSSMX and Schwab only requires a minimum investment of $2500/$1000 with a TF. (Fido, unfortunately, has a $100K minimum.)
NESIX is also available at T Rowe Price brokerage for a minimum of $
1000 and NTF.
Though I like the strategy very much, its 44 stock portfolio is not without the occasional risk. Its 3.23% weighting in Telos Corp suffered yesterday as their shares lost 28%.
November Commentary is live! +1
World Stock Funds-Are they a viable alternative? +1 Yes-you could have done a lot worse than paying the 3 and 5% load on FCNTX and SGENX in the early 1990's and staying in those fund sthe last 30 years !
RMDs
RMDs @msf, thanks for added info. I agree that firms can and do make mistakes in not using the proper table, etc.
A common mistake people make with RMDs (when required) for Inherited IRAs is that they keep using the table every year. But for Inherited IRAs, one is supposed to use the table only to find the INITIAL divisor, and then keep SUBTRACTING -
1 each year.
World Stock Funds-Are they a viable alternative? Couple thoughts. Not my expertise.
- If I were very young and saving for 25+ years out, a good actively managed time tested global fund is what I’d use. Heck, with a 25-35 year time horizon until even the first withdrawal, that’s about all I’d use. TEMWX was a great fund in the 70s and for several years beyond. (Went downhill after Franklin took over).
- Here’s one of the first things I learned from our plan’s advisor (whom I don’t begrudge for the 4% commission he was raking in). Says Bob: “Global’s better because if the U.S. becomes overvalued they’ll simply take the money and move it to other areas of the world that aren’t overvalued.” Made sense to me than and still does.
- You might already be invested in a global fund without realizing it. Recently I looked at the Lipper stats for sedate conservative PRSIX which I’ve long held. It’s currently invested 61% in North America. I can pin down about 25% shown to be on other continents. Doesn’t add up to 100. Might be that the fund’s substantial cash & “other” holdings aren’t assigned to any particular geographic area.
RMDs RMDs for inherited IRAs are grandfathered - if you have an existing inherited IRA from which you are taking RMDs, you can continue as if nothing had changed. You do not need to deplete them within
10 years.
https://www.irahelp.com/slottreport/stretch-ira-lives-some-beneficiariesThese RMDs cannot be combined with RMDs for all other T-IRAs.
And as I noted in a previous post above, calculating the RMDs for these IRAs under the new tables is not as simple as merely looking them up. I am concerned that there is a nontrivial chance that custodians will err in their OPTIONAL calculations.
AAII I am a lifetime member of AAII. Its annual membership is very low and comes with monthly AAII Journal and good online access. I track its weekly AAII Sentiment Survey in other venues. The AAII Journal is really a magazine for general public although occasionally it may publish articles on rather dense topics. Note that the Trinity study on withdrawal rates was published in the AAII Journal in 1998. Lately, AAII is quite aggressive in selling lots of other stuff but I don't buy any of those. AAII location in Chicago is not that far from M* and they seem to have good mutual interactions.
RMDs RMDs for all T-IRAs can be combined and taken from ANY ONE T-IRA. Brokers'/funds' calculations are OPTIONAL services they offer - I subscribe to those to just double-check my own calculations. Some firms also have contractual signups for calculating AND distributing RMDs but they are good only for straightforward situations.
RMDs for all 403b can be combined and taken from ANY ONE 403b.
Then the spoiler. RMDs for 401k must be taken from each 401k (i.e. they cannot be combined like the 2 situations above).
Note that the RMD tables are changing on 1/1/22, and the IRS will come out with 2022 RMD worksheets LATER so as not to confuse people. But the new RMD tables were decided in 2019/2020, and were initially to go into effect on 1/1/21, but that was delayed to 1/1/22.
RMDs from Inherited IRAs - the old rule requited annual RMDs. But with the IRA stretch gone, the IRAs must be depleted within 10 years and one can do it in any way, gradually, or all at once by the 10th year.
SS increase: what to do As an aside for those of you looking for a COVID booster, most pharmacies are requiring an appointment. The demand is overwhelming as many of those patients seeking boosters originally had their first shot(s) at mass administration public sites that are not doing the additional dose--so they are all funneling into the pharmacies. Many locations are enduring the same staffing issues as the economy at large--open positions with few if any qualified applicants.
I tried to setup an appointment for a Covid-
19 booster shot last Thursday.
I used an app to search national/regional/local drugstores, supermarkets, and hospitals.
Since I assumed there was ample supply, I was surprised most available appointments were two or more weeks out. After a lot of searching, I was fortunate to get one of the few available appointments at a local primary care practice the next day.
10 Mistakes... ...Every Investor makes.
Courtesy of Peter Lynch:
T. Rowe Price Summit Program TRP is trying to get some of their bigger investors away from the online mutual fund supermarkets so they can reduce the amount of their management fees they have to pay to Fidelity, Schwab, etc.
For several years I've considered returning our accounts directly to TRP out of loyalty and appreciation for the excellent investment management our accounts have received through PRWCX and Giroux. Around 80% of our investments are in TRP funds (primarily PRWCX). I moved our accounts first to TDA and now at Schwab, why should they be getting a big chunk of the management fees, what are they adding to our investment returns in those funds?
But, up until now there has been no personal financial incentive otherwise to make the move back to TRP. Now that the new Summit program has dramatically lowered the hurdle to access institutional shares ($50,000 rather than $1 million) at the lower ER and also gives access to closed funds like PRNHX, I'm seriously considering making the move. Any non-TRP funds we want to invest in can still be done so through a TRP brokerage account. Being able to park our investments in the institutional shares will potentially add TENS OF THOUSANDS OF DOLLARS to our returns over the next number of decades if we are blessed to live that long.
I've wondered why more fund shops haven't followed the lead of organizations like Grandeur Peak who will let shareholders purchase the cheaper institutional shares at far lower minimums if they invest directly with the fund rather than through brokers. Kudos to TRP for finally coming around.
Please let me know if I am overlooking something here.
Preparing For The Grizzly Bear +1 old joe If I was as successful as FD, I would be sharing a $50 million yacht parked off St Bart's with Shakira, Zoe Saldana or Halle Berry !
