Above all, having reached 65, I want to simplify, consolidate, simplify, re-deploy tax-sheltered stuff a bit at a time into non-sheltered investments and simplify, simplify, simplify. And keep it SIMPLE. Just in the last couple of days on this message board, I've read responses to my own questions and other links and articles which make me want to rip my own face off my head. NOTHING should be so complicated as the tax laws we have.
...So: I want to create a TAXABLE account in a good bond fund which pays more than the likes of PRSNX and DODIX. (I own the former, but not the latter. It's in a T-IRA.) I'm pretty happy with my PTIAX, (taxable account) but I don't want to put all my eggs in one basket. I'd love to get over a 4% yield, and prefer monthlies, not quarterlies. I have a MONTHLY few bills. The bills won't wait for my QUARTERLY pay-outs.
DODBX is a (balanced) prospect. I already own PRWCX in T-IRA.
What about Tweedy Browne, do you think?
Our income will be low enough so that we don't need to worry much about uncle sam and the IRS. But income will be high enough to live a good life here in the 50th State, even though EVERYTHING is expensive. We could not do it if my two maiden aunts didn't leave us a buncha money. But the money grew so well also due to the fine advice and direction I received and learned about HERE. Thanks.
The ins-and-outs of the tax code are totally bizarre. BULLSHIT is a word that comes to mind. "I'll just take mine straight, please. No chaser, either."
Anyone want to recommend a few of each for me? Bonds and balanced or pure stock funds? Thanks.
For your "taxable" account might you not fair better by looking at a muni bond fund or something like a dividend growth fund (e.g. VDIGX, but there are many others) where the income might be at least partly qualified and thus possibly sheltered from the tax man? I'm guessing that you 'need' the income in your taxable side and prefer not to draw down your IRA account(s).
Please look at vanguard star vgstx (good balance fund) or vanguard prime cap core vppcx
We have held these and add to them frequently for quite long time
We have lsbrx Loomis bond fund, also happy w results
We also have Akrex and FLAAX om our radar after reading few suggestions mentioned here frequently
This is do-able, and the more she has sitting in a taxable account, the better. At this point, we don't need to worry much about sheltering big profits and worrying about a sizable income. We've relocated to where we want to be for now. A dream come true, though we don't by any means live in a palace. Extended family is here to be of help, and they're great. Wifey will get a car, I won't even bother. 4 cars, in a single household. People are busy, just not ME. I can use my bus pass anytime to see ALL of Oahu, unlimited. I could circumnavigate Oahu on the bus every single day if I want! The senior yearly bus pass is less than one-twelfth of a standard annual pass. That's the difference between groceries or no groceries for over a month. Can you see me smiling from here?
IOFIX Fact Sheet
From Morningstar: “A balanced fund that seeks to distribute primarily tax-exempt income... essentially a combination of Vanguard Intermediate Tax-Exempt and Vanguard Tax-Managed Capital Appreciation.”
My three hybrid type fund picks, from the growth and income area of my portfolio, would be AMECX, CAIBX and TIBAX. All three of these are good income generators plus they will grow your capital over time. From the income area of my portfolio my three hybrid type fund picks would be BAICX, FKINX and JNBAX. All three of these are good income generators however they have less equity risk associated with them and principal will not grow as fast when compared to those coming from the growth and income area.
Remember ... members when signed in ... you can click on the fund's ticker symbol and select from a menu of fund reports to view.
In addition ... I like @davidrmoran picks as well and I have been thinking of adding JABAX to the growth and income area of my portfolio. I already own PONAX in the income area of my portfolio.
I wish all ... "Good Investing."
Yes many of the companies that issued these are not common stock SWAN investments, but keep in mind that preferred stock dividends HAVE to be paid before common stock dividends. So for many REITs and BDCs and CEFs and the like, it doesn’t matter how much their “common equity” dividend is, or how much it changes up or down, just that it IS paying a dividend, which these companies tend to do. And the preferred stock holder has to be paid before the common shareholders are paid (sorry for the repetition there).
Some examples of monthly paying preferred stocks (you buy them just like individual stocks, from a broker....most now don’t charge a commission to buy or sell!):
ARR-A: pays high 7% every month (a crappy mortgage REIT but just need it to continue to be a going concern to continue to pay)
ECCB/OXLCO: low-to-mid 7% every month (the common, ECC and OXLC, own CLOs and other Wild West type investments, and definitely have fleas, but same as above)
LANDP/GOODM/GAINM: all from companies managed by Gladstone something or other, and all pay 6% or better, monthly (similar parenthetical to ARR-A....though LAND is a farmland REIT, GOOD is a mixed property REIT, and GAIN is a BDC)
VER-F: pays high 6% monthly (keeps getting partially called, so there is a chance your share counts would slowly decline as the company is able to have the cash available to partially redeem the issue; VER is a middling triple net REIT that was a poor company in a past life)
Certainly these aren’t “can’t lose” investments, and there’s always chances that the issuing company goes belly up, and you have to deal with call risks, where the company buys the preferred shares back at par (generally $25), all of these are trading over $25 par price, and the prices definitely can fluctuate up and down a couple percent or more, based upon interest rate policies and market fears, but if you are interested in decent monthly income that you can count on during most economic times, preferreds are one solid option, in this posters humble opinion.
I dont mean ti redirect the thread (and I realize this is MFO, not preferred stock observer lol), so PM me if any more interest. Definitely not an expert in all the nuances of these securities, but visit several sites dealing with them, and have traded them for a few years.
JABAX is an advisor/broker fund offering. The clue is an A, B or C before the X in the ticker, generally speaking, which has been used for load share classes of funds. This fund is now noted as a "T" type as part of the changes for fiduciary rules for advisors/brokers. I do believe your cup of tea will be found with JBALX.
Skeet uses the JABAX due to his relationship and available choices with his broker, I will presume.
You may discover all you want to know about T class with a search.
Fidelity minimum is $500.
Are you trying to buy this through your brokerage where your IRA or taxable accounts are held? Have you tried a test purchase there? OR is it stated at your brokerage that $100K is the minimum?
There are a number of funds such as this that have similar long term results. Is there a particular reason you chose this fund?
JABAX is a good fund but FBALX is cheaper and out performs JABAX on a 10 Year basis.
Do a compare at MFOP, I suggest, looking at UI, maxxDD, GO status, etc....
1) I believe and can prove it that in most cases you want to own stock funds + bond funds because bond funds is where you find managers who can add performance + better risk attributes.
2) Stocks are simpler, you must own US LC and VTI/VOO is just a great, very cheap and will beat most managed fund longer term. This index also gets over 40% of its revenues from abroad
3) For about 20 years now my specialty has been to find the exceptions
PRWCX-this is the only allocation fund I would use. The managers use a flexible mandate + use several categories + making the right decisions for many years and why performance is in the top 1-3% for 1-3-5-10-15 years.
DSEEX-First, managers invest in global bonds then, they look at 11 US stock sectors and select 5 undervalued sectors, then take 4 sectors out of 5 with the best momentum. They don't invest directly in the index but in a derivative that is similar to the index.
Basically, you get 200% investments for the price of 100%. You get real bonds + derivative of stock indexes.
To make even simpler, let's assume they invest in just one sector SPY and assume the bond portion makes 3-4% annually. It means, the performance will be SPY + 3-4% - (paying for derivatives).
USMV/SPLV-low volatility funds work. PV(link) shows that you get similar performance with better risk attributes
4) For over 40 years high tech is where you will find the best opportunities and growth and now they own the world and this is the biggest category in the SP5500. So, why not just own QQQ which BTW gets over 50% of its revenue from abroad.
5) If you want to diversify abroad I don't like generic indexes. I like to make a bet that EM is where I want to be but not in Europe.
6) For bond funds, I have many great options and I mentioned many of them at my thread (https://www.mutualfundobserver.com/discuss/discussion/54803/bond-mutual-funds-analysis#latest)
7) Don't collect funds, the max funds you own should be under 10 and your best ideas.
Putting it all together and I can see VOO,PRWCX,DSEEX,QQQ + IISIX,VCFIX,IOFIX,PUCZX (you may need higher rated bond funds as ballast). Depending on goals I can make adjustments.
+1, more funds generally means more trades and more trades usually mean lower performance.
1995-2000 I invested mostly in one fund, US total index after I read Random walk
Since 2000 and after I started my best risk/reward funds, the max is 8 funds.
In the last several years it's 5 but many times just 3-4 funds. There is no reason for me to own my second best ideas but I also trade more often than others by being invested most times at 99+% and playing momentum. I don't recommend or promote it for anybody.
Over the years I helped many and I usually use 5-6 funds with 1-2 changes annually.
For investors who really want to be buy and hold investors, I would recommend indexes and/or Wellington funds (VWIAX,VWENX,VWEAX) because who knows what will happen 10-20 years from now, the expense ratio is very low and these are unique conservative funds that are managed by a group and not star managers.