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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.

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M*: A Well-Built Balanced Fund For Retirees: (TRRIX)

FYI: T. Rowe Price Retirement Balanced features an inspiring mix of funds.


  • edited November 2019

    While I don’t currently own TRRIX, I like it a lot. Readers may recall that I’ve long benchmarked against it. It provides an appropriate yardstick against which, I think, for someone in retirement to compare not only total return, but also the short and long term volatility implicit in their investments. A fine fund any way you cut it - though some will criticize it as too expensive in terms of ER.

    @Ted - Your Colbert Butterball video is a hoot!:)
  • TRRIX's ER is 0.51% which is reasonable.

    Similar to this 40/60 balanced fund is Vanguard Wellesley Income fund (35/75 stock/bond allocation). The admiral shares' ER is 0.16% with $50K mininium.
  • edited December 2019
    Hi @hank and others.

    I use to use the Lipper Balanced Index as my bogey. However, it is no longer easily accessable to follow weekly so I've done as hank and chose a fund within my portfolio that has some common traits as my overall portfolio.

    With this, I now use American Fund's Capital Income Builder A shares (CAIBX) as my bogey since it, as well as my portfolio, have a global total return perspective with both having an income tilt. Both have about the same income yield (excluding capital gains) which is in the low to mid 3% range with CAIBX having a ten year total annual return of 6.92% (according to M*) while my portfolio has about the same yield but with a ten year average total return of better than 2+% more than CAIBX. A good bit of my portfolio's outsized performance comes by me employing spiff (special investment) positions from time to time.

    Interestingly, TRRIX and CAIBX have the same rolling 12 month total return of 10.74% (according to M*) with CAIBX listed with a ten year average total return of 6.92% vs 6.04% for TRRIX through November 29, 2019. In addition, CAIBX is listed with a TTM yield of 3.4% while TRRIX is listed at 1.66%.

    Because of my portfolio's outsized performance has made being active, for me, worthwhile as it has put additional dollars in my pocket that I would not otherwise have. In addition, I favor higher yielding hybrid funds as long as they can maintain respectable total returns since this puts more income dollars in my pocket over the lower yielding ones.

    I wish all ... "Good Investing."

  • Wellesley (VWIAX) is better than TRRIX for performance + risk attributes + lower ER. See the results (here)
  • Schwab all target funds ER now is just 0.08%. The rest must compete.
  • edited December 2019
    Yes, TRRIX looks good to me, apart from the paltry dividends. I still am enjoying my own mix. In order of size: PRWCX RPSIX PRSNX PTIAX PRIDX VEIRX (wife's 403b soon to be moved to TRP as a rollover IRA.) and lastly, PRDSX. .....In full retirement, and wife will commence work again in 2020. I'm paying monthly rent. Nobody wants to still be doing that in retirement, but it simplifies everything, with water and electric included. And I'm rid of a house the family had owned since 1959--- which I've hated for as long as I can remember. And snow is now a thing of the past for us. ...Though I did get caught in the rain on my walk today. 5 mins. from the house. The little guy here just lights up your heart when he smiles at you. We're sharing with cousins. It really feels like FAMILY. :)
  • @Crash, great to hear your new life-journey is working out so well. You retreated to what many think is paradise on earth.
    ...Though I did get caught in the rain on my walk today.
    Love that line after coming in from shoveling snow, again.

  • It's important to me if a fund is considered for a taxable account as I avoid funds that pay capital gains.
  • edited December 2019
    @ron, no one would fight you on that thinking. however, a wise man - who I didn't meet until too late - once said, "no one went broke paying taxes". besides if you are retired, you are seeking income and distributions serve that purpose automatically, no?

    @FD1000, I was thinking the same thing.
  • If it's an IRA I agree but if the total amount of taxable income in a taxable account is below a specific amount (around $78,750 for joint account) capital gains are zero.
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