Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
For those that have a number of accounts along with a good number of mutual funds I formulated a sleeve management system that has helped me greatly. It might also provide you with some ideas that you can incorporate in something you might choose to develop for yourself.
The article speaks to a concern no doubt many have; but, it falls short and fails to offer direction as to how to solve the concern other than to go see a financial planner.
For those interested ... Here is what I did and I it found that it worked so well for me that I have chosen to stay with probally more funds than I absoutely need as I could probally reduce the number down to about thirty (three per sleeve) and still incorporate my system.
The system was derived from a betting system I used at the dog track many years ago. In this system I'd usually bet ten races and in these races I'd bet my three best picks in each race to win, place or show. Folks, I usually left the track with more money than I came with. So, for me, my system worked even better than I first thought it ever would. Even today, I still make an occasional trip to Daytona (visting friends) and bet the dogs using my system ... and, I still wear a smile as I usually come away with more money than went with. Some ask me ... How you do you do this? If they were readers of the Observer then they would know. My wife knows, but our friends don't. So let's keep it to ourselves.
My Investment Sleeve Management System (09/02/2015)
Here is a brief description of my sleeve system which I organized to help better manage the investments that were held in five accounts. The accounts consist of a taxable account, a self directed ira account, a 401k account, a profit sharing account and a health savings account plus two bank accounts. With this I came up with four investment areas. They are a cash area which consist of two sleeves … an investment cash sleeve and a demand cash sleeve. The next area is the income area which consists of two sleeves. … a fixed income sleeve and a hybrid income sleeve. Then there is the growth & income area which has more risk associated with it than the income area and it consist of four sleeves … a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. An finally there is the growth area, where the most risk in the portfolio is found and it consist of four sleeves … a global sleeve, a large/mid cap sleeve, a small/mid cap sleeve and a specialty sleeve. Each sleeve consists of three to six funds (in most cases) with the size and the weight of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds and the amounts held. By using the sleeve system one can get a better picture of their overall investment picture and weightings by sleeve and area. In addition, I have found it beneficial to xray each fund, each sleeve & each investment area monthly; and, the portfolio as a whole at least quarterly although I do it monthly. Again, weightings can be adjusted form time-to-time as to how I might be reading the markets and wish to weight accordingly. All funds pay their distributions to the cash area of the portfolio with the exception being those in my 401k, profit sharing, and health savings accounts where reinvestment occurs. With the other accounts paying to the cash area builds the cash area of the portfolio to meet the portfolio’s monthly cash disbursement with the residual being left for new investment opportunity. In addition, most all buy/sell trades settle from or to the cash area with some nav exchanges taking place.
Here is how I have my asset allocation broken out in percent ranges, by area. My neutral targets are cash 15%, income 30%, growth & income 35%, and growth 20%. I do an Instant Xray analysis on the portfolio monthly and make asset weighting adjustments as I feel warranted based upon my assessment of the market, my risk tolerance, cash needs, etc.
Cash Area (Weighting Range 5% to 25%) Demand Cash Sleeve… (Cash Distribution Accrual & Future Investment Accrual) Investment Cash Sleeve … (Savings & Time Deposits)
Income Area (Weighting Range 20% to 40%) Fixed Income Sleeve: GIFAX, LALDX, THIFX, LBNDX, NEFZX & TSIAX Hybrid Income Sleeve: AZNAX, CAPAX, FKINX, ISFAX, JNBAX & PGBAX
Growth & Income Area (Weighting Range 25% to 45%) Global Equity Sleeve: CWGIX, DEQAX, EADIX & PGUAX Global Hybrid Sleeve: CAIBX, IGPAX & TIBAX Domestic Equity Sleeve: ANCFX, FDSAX, INUTX, NBHAX, SPQAX & SVAAX Domestic Hybrid Sleeve: ABALX, AMECX, DDIAX, FRINX, HWIAX & LABFX
Growth Area (Weighting Range 10% to 30%) Global Sleeve: AJVAX, ANWPX, NEWFX, PGROX, THOAX & THDAX Large/Mid Cap Sleeve: AGTHX, BWLAX, HWAAX, IACLX, SPECX & VADAX Small/Mid Cap Sleeve: IIVAX, PCVAX, PMDAX & VNVAX Specialty Sleeve: CCMAX, LPEFX & TOLLX
Over the past 90 days, or so, the four most recent additions are AJVAX, GIFAX, JNBAX & VNVAX. The four most recent discards are CFLGX, DEMAX, PASAX & SGGDX. Total number of funds currently held equal fifty.
@Old_Skeet, Thank you for sharing your thinking and the detailed portfolio makeup. You have lots of patience. Tweleve funds and five stocks in ten accounts are plenty for me to manage.
A couple of the funds I have own since I started investing back when I was a teenager. These two are FKINX & AMECX, let's see I am sixty seven now. Then there are others that I have owned for more than ten years. As yes, I do fire some fund managers from time-to-time should their funds falter. One of the more recent funds that had been faltering, for a good while, and one that I let go was PASAX. Should have done it a year ago.
Thank goodness that the other funds within the sleeve have been performing well and offered production that continued to propel the sleeve. This is one of the benefits of the sleeve system. Should a fund falter then there are the others that can provide support and continue to propel the sleeve. In this case that is exactly what took place.
I wonder how many fall into my category. Over the years I collected a large number of fund mostly good ones.While I would not now buy at least 10 of the funds I own I do not wish to sell for tax reasons though I would sell if they started doing badly but its more they have been mediocre(one example I will sell when the manager dies is Gabelli Asset) as I resent the management fees.A fund I certainly would not buy today is Acorn.They are fairly easy to manage since I mostly take action in Roth and 401k accounts where taxes are not a concern raising or lowering equities depending on my view of market prospects but I never take very big moves..For about two years I have been nervous about the market but the action I took in taxable accounts was to stop reinvesting dividends. I used the income to take trips, eat out more and buy i bonds when the rate was reasonable. I regret that money market funds pay little and have not purchased a CD in at least 5 years.
Comments
The article speaks to a concern no doubt many have; but, it falls short and fails to offer direction as to how to solve the concern other than to go see a financial planner.
For those interested ... Here is what I did and I it found that it worked so well for me that I have chosen to stay with probally more funds than I absoutely need as I could probally reduce the number down to about thirty (three per sleeve) and still incorporate my system.
The system was derived from a betting system I used at the dog track many years ago. In this system I'd usually bet ten races and in these races I'd bet my three best picks in each race to win, place or show. Folks, I usually left the track with more money than I came with. So, for me, my system worked even better than I first thought it ever would. Even today, I still make an occasional trip to Daytona (visting friends) and bet the dogs using my system ... and, I still wear a smile as I usually come away with more money than went with.
Some ask me ... How you do you do this? If they were readers of the Observer then they would know. My wife knows, but our friends don't. So let's keep it to ourselves.
My Investment Sleeve Management System (09/02/2015)
Here is a brief description of my sleeve system which I organized to help better manage the investments that were held in five accounts. The accounts consist of a taxable account, a self directed ira account, a 401k account, a profit sharing account and a health savings account plus two bank accounts. With this I came up with four investment areas. They are a cash area which consist of two sleeves … an investment cash sleeve and a demand cash sleeve. The next area is the income area which consists of two sleeves. … a fixed income sleeve and a hybrid income sleeve. Then there is the growth & income area which has more risk associated with it than the income area and it consist of four sleeves … a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. An finally there is the growth area, where the most risk in the portfolio is found and it consist of four sleeves … a global sleeve, a large/mid cap sleeve, a small/mid cap sleeve and a specialty sleeve. Each sleeve consists of three to six funds (in most cases) with the size and the weight of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds and the amounts held. By using the sleeve system one can get a better picture of their overall investment picture and weightings by sleeve and area. In addition, I have found it beneficial to xray each fund, each sleeve & each investment area monthly; and, the portfolio as a whole at least quarterly although I do it monthly. Again, weightings can be adjusted form time-to-time as to how I might be reading the markets and wish to weight accordingly. All funds pay their distributions to the cash area of the portfolio with the exception being those in my 401k, profit sharing, and health savings accounts where reinvestment occurs. With the other accounts paying to the cash area builds the cash area of the portfolio to meet the portfolio’s monthly cash disbursement with the residual being left for new investment opportunity. In addition, most all buy/sell trades settle from or to the cash area with some nav exchanges taking place.
Here is how I have my asset allocation broken out in percent ranges, by area. My neutral targets are cash 15%, income 30%, growth & income 35%, and growth 20%. I do an Instant Xray analysis on the portfolio monthly and make asset weighting adjustments as I feel warranted based upon my assessment of the market, my risk tolerance, cash needs, etc.
Cash Area (Weighting Range 5% to 25%)
Demand Cash Sleeve… (Cash Distribution Accrual & Future Investment Accrual)
Investment Cash Sleeve … (Savings & Time Deposits)
Income Area (Weighting Range 20% to 40%)
Fixed Income Sleeve: GIFAX, LALDX, THIFX, LBNDX, NEFZX & TSIAX
Hybrid Income Sleeve: AZNAX, CAPAX, FKINX, ISFAX, JNBAX & PGBAX
Growth & Income Area (Weighting Range 25% to 45%)
Global Equity Sleeve: CWGIX, DEQAX, EADIX & PGUAX
Global Hybrid Sleeve: CAIBX, IGPAX & TIBAX
Domestic Equity Sleeve: ANCFX, FDSAX, INUTX, NBHAX, SPQAX & SVAAX
Domestic Hybrid Sleeve: ABALX, AMECX, DDIAX, FRINX, HWIAX & LABFX
Growth Area (Weighting Range 10% to 30%)
Global Sleeve: AJVAX, ANWPX, NEWFX, PGROX, THOAX & THDAX
Large/Mid Cap Sleeve: AGTHX, BWLAX, HWAAX, IACLX, SPECX & VADAX
Small/Mid Cap Sleeve: IIVAX, PCVAX, PMDAX & VNVAX
Specialty Sleeve: CCMAX, LPEFX & TOLLX
Over the past 90 days, or so, the four most recent additions are AJVAX, GIFAX, JNBAX & VNVAX. The four most recent discards are CFLGX, DEMAX, PASAX & SGGDX. Total number of funds currently held equal fifty.
I wish all ... "Good Investing."
Old_Skeet
Thank you for sharing your thinking and the detailed portfolio makeup. You have lots of patience. Tweleve funds and five stocks in ten accounts are plenty for me to manage.
A couple of the funds I have own since I started investing back when I was a teenager. These two are FKINX & AMECX, let's see I am sixty seven now. Then there are others that I have owned for more than ten years. As yes, I do fire some fund managers from time-to-time should their funds falter. One of the more recent funds that had been faltering, for a good while, and one that I let go was PASAX. Should have done it a year ago.
Thank goodness that the other funds within the sleeve have been performing well and offered production that continued to propel the sleeve. This is one of the benefits of the sleeve system. Should a fund falter then there are the others that can provide support and continue to propel the sleeve. In this case that is exactly what took place.
And, so it goes.
Peace.
Old_Skeet