My Investment Picks For Retirees In 2023{Forewarned - this article is from Seeking Alpha and some may not be able to access it}
Summary ° I expect the Federal Reserve to continue to increase rates at a slower pace until they reach about 5% and hold them there through 2023, creating opportunities for retirees.
° A recession is likely in the second half of 2023 and valuations are still high with respect to inflation and interest rates. Earnings growth is likely to decline.
° This article looks at how retirees may benefit from diversifying in bonds and staying diversified in conservative equity funds.
Comments
https://seekingalpha.com/article/4571846-investment-picks-for-retirees-in-2023
Indeed.
Thanks,
Fred
I accessed article just 1 time using my DuckGo browser. But couldn’t get in again. A good approach would be to clear your computer or device’s cache and then attempt to access it. Only issue is you’ll later need to re-enter passwords for sites you frequently visit.
I read your entire article with great interest. It helped me decide on a Global Stock Fund (FMIEX) to add to my Core Holdings to slightly increase my foreign stock exposure. Global Stock Funds are my primary means to obtain foreign exposure. FWIW, my other fund in that cat is PRGSX.
I highly recommend your article to anyone who posts here. It is chock full of excellent analysis that is great food for thought.
Good article Charles!
The two most important recommendations in that article are to maintain a diversified portfolio and match bonds and CDs with withdrawal needs. Other than that, each investor's needs and beliefs are different, so I attempted to present quality options.
For me, after I wrote the article, I went back and looked I wanted to do. I made two changes: 1) move proceeds from matured CDs and Treasuries sitting in money markets to Fidelity and Vanguard Intermediate Treasury funds, and 2) move a short-term Muni-fund into an intermediate Muni-fund. Small steps each month.
I have more CDs and Treasuries maturing in February and will reassess based on new data. The funds in the article are my short-list. One fund mentioned by a reader is AVGE which is interesting. I am looking for similar funds for comparison.
Glad that you enjoyed the article.
(aside from lags and ongoing gouging)
https://twitter.com/jan_eeckhout/status/1617478919560794112
I like DIVO and have owned it in the past. I limit my funds to those with AUM over $100M while IDVO has only $9M and has an inception date of last September. By comparison, DIVO has $2.6B in AUM. IDVO has readily outperformed the S&P 500 during its existence. It has also outperformed DIVO readily.
It will probably be fine applying a similar model as DIVO, but it is too small and too new for my taste.
Looking at other Options Arbitrage / Strategies, I see not other funds that interest me with more AUM and age. IRONX, JHEQX, and JEPIX have good long-term performance and are Great Owls. ACIO has also done well. REMIX also uses options and has a good three-year history.
While I find funds like IDVO interesting, I put them in a "Young Fund" Watchlist until they get more history.
Question for you or anyone else more fluent with using the MFO screener:
Can anyone find balanced or multi-asset funds that have a profile similar to what you recommend? In other words, for equities, value+SC+foreign, and for bonds, intermediate high quality? I would prefer to have my bonds chosen by a manager as part of an active fund.
Or, is it better to just continue using individual funds from these categories, from funds similar to what you recommend, and build my own (for example, COWZ+DIVI+DODIX)?
Thanks again!
Rick
What I do is do a screen and then select "Groups" that I want. Then I select "Columns" to limit what I don't want. Then I saved out the settings as "Preferences". I can then dump the results to an Excel spreadsheet and dive into the details such as percent equities or percent invested in the US. I spent considerable time selecting the funds that I want to track and then saving them as "Watchlists" which I update one a year or when I read about an interesting fund. Other options are whether the fund is "actively" managed.
I generally own about ten funds per portfolio, but the allocations are concentrated in the funds that I like the most. I do prefer multi asset funds.
My next article is about Avantis Global Multi-Cap Core. It describes a multi-cap fund of funds. I intend to use it as you inquire - to build my own mixed asset portfolio. I will always own mixed asset funds though - like the Vanguard Global Wellington or Wellesley funds. They are mixed asset, global value funds.
Of the Small- and Mid-Caps in the article and RWJ, BRSVX, looking at the ten-year performance, I like Fidelity FLPSX and BOSOX for being less volatile.