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For me adapting to a one fund has been profoundly challenging. Most recently we had four funds in our portfolio. Down to two and second guessing myself to death. It’s so much easier to add another than to find the perfect “one.” Disclosurer: The two (for now) are VGWLX and PRPFX.
You are suffering from what many of us do. The ability (or lack of) to do nothing, it's hard. For many of us this is also like a hobby. I'm doing much better in the last year doing nothing re: not changing funds/etfs, just simplifying and letting what I have run. It's working and I'm thinking I should do nothing more often! ;^) Is that an oxymoron? "do nothing more often"
@gman57. You nailed it. The Zen of investing is just do nothing. True enough it’s also a hobby. Unfortunately for me my lifelong hobby of sailing (and being owned by an aging boat) recently ended and hiking the sierras is also aging out.
@bee. That really gives credibility to the Boglehead school of investment management. They often brag about checking their investments annually. I guess they spend most of their time keeping their 500,000 mile Toyota Camry on the road.
I have a advice only person that I bounce things off of every 2-3 years. I send them my stuff, we spend an hour or no time going over it and they charge me hourly. My wife knows them and if I kick the bucket they know to take over and simplify further so my wife understand.
I directed my parents advisors to do similar and they too thought it was be easiest too. They are now in a single American Fund as opposed to 10 of them.
@mskursh- Having used American Funds primarily for almost fifty years to build our retirement position we now have simplified to MMKT, CD, and Treasury holdings at Schwab. Having used many different American Funds over the years, I'm curious as to which one that you've chosen for your simplification situation.
@Sven…. You are correct. This is about capital appreciation,,, or inflation protection or for sport. No income need. The last few years we have been fine with CD’s and money market but really that bucket is just risk off. My one fund is the risk bucket. But as I am realizing one fund is just not any fun.
No funds is even less fun. But every time that I'm tempted by all of you I take a look at the current market level and decide to wait until Trump crashes the whole thing. Maybe then.
@Ood_Joe. On one hand waiting is smart. OTO hand the market can stay irrational for a long time. I gotta turn off my Seeking Alpha notifications and just stick to watching baseball. When the new Fed board lowers rates to ZERO , then what?
@sven. Interesting. Long ago I owned Sogen International Fund which I believe was the predecessor to SGIIX. The manager , I seem to remember, was Eveillard. Or something like that. A rock star of his time.
Your memory is correct. Jean-Marie Eveillard earned his reputation managing the SoGen International Fund¹ from 1979 until 2004. Mr. Eveillard was named Morningstar’s International Manager of the Year in 2001 and received its first Fund Manager Lifetime Achievement Award in 2003. Wealthtrack interviewed Eveillard in 2015. https://youtu.be/Nd9MIJasr8I
¹ renamed to First Eagle SoGen Global Fund in 2000.
Matthew McLennan has been managing this fund since 2008. The fund holds about 10% in gold, quite like his predecessor, Eveillard. McLennan has been on Wealthtrack a number of time in the past. Three other co-managers have been added since 2011 to lessen a single manager risk.
I've decided to "juice" my Trad IRA a bit by adding a single-stock. That item has grown to be 4.99% of that particular account. It went ex-div today and is 3.95% of my total.
Simplification is to be preferred, indeed. But already, PRWCX (in T-IRA) is approx. 40% of my total. So, what's a mother to do? I've decided that it would be a bad idea for me to simplify so much that I run risks that are unnecessary. Just ordinary, run-of-the-mill investing is risky enough. I am also almost at a 50-50 stocks/bonds allocation. There's a bit in the MMkt.
Three single stocks: 2 banks, outside USA. BLX and FBP. And one of the biggest oil/gas midstream LPs, ET. I insist on dividends in my single company stock holdings. A hedge against the added risk.
Wife's IRA is in a single fund: BALFX. I'm still holding (with hers) 8 individual positions, plus MMkt. Along with PRWCX I've got PRCFX, and that may well involve some overlap, but that's OK with me. I like the emphasis on bonds in PRCFX. Two of the 8 are junk bond funds. I could consolidate them, but one is deliberately in taxable, and I intend to grow it in order to tap monthly dividends, down the line.
This is about as simple as I can manage these days. Best wishes to all, in the endeavor.
SGENX is the Class A share of the First Eagle Global Fund, which started out as SoGen International Fund.
SGIIX represents the Class I (Institutional) shares of the same fund.
I remember in mid 90s a Mutual Funds Magazine with Jean-Marie Eveillard and his SoGen Fund on the cover with same question “Only fund you need?”
Yes, it has been a very good fund since 1979.
Mutual Funds Magazine was launched in 1993 by the Institute for Econometric Research, a Florida-based financial publishing and advisory firm. The institute was co-founded by Norman G. Fosback. In 1998, the institute's publishing assets, including the magazine, were acquired by media giant Time Inc. And they likely merged it into Money Magazine.
Well, one fund doesn't make sense, but 2-5 funds do. It's been part of my system since 2000, when I started with 5 funds.
I invested based on markets. 1995-2000 = 90+% in VTI, the rest in growth 2000-2010 = SGIIX/SGENX, FAIRX, OAKBX for 8 years; the other 2 funds were traded more often. I beat the SP500 by 10% annually. 2010-2017 = stocks: all US LC and the rest mostly in PIMIX 2017-current = changed to only 2-3 funds, all in bonds.
Hint: when US LC do well, invest only in them. When they don't, diversify. Both SGIIX + TIBIX have done well = easy choice. While VG have great indexes, it's much easier to find better managed funds in other categories than LC. See (https://schrts.co/ffZKvugI)
@mskursh- Having used American Funds primarily for almost fifty years to build our retirement position we now have simplified to MMKT, CD, and Treasury holdings at Schwab. Having used many different American Funds over the years, I'm curious as to which one that you've chosen for your simplification situation.
Thanks- OJ
It was between American Fund Retirement Income Enhanced - FCFWX or simply Balanced Fund of America - BALFX
The distinction is the international exposure in the end. FCFWX is an allocation and BALFX isn't. We decided on FCFWX. its slightly less risky than the balanced fund. 60/40 as opposed to 65/35 and it had more international stocks.
My parents hold 2 years of cash in a money market fund, have a small annuity, and modest SS payments.
1 fund is I suppose a worthy endeavor. I considered it and gave up the idea sometime around 2020-21. The fund I had in mind was TRRIX a 40 (equity) 60 (fixed income) fund. In hindsight it was a fortunate decision not to go ahead because that fund had annuncharasticly bad year in 2022. A lesson in how even very “conservative” funds can lose more than 10% in a year when the markets team up against them.
If one feels they have the mental acuity, knowledge, time I’d say go with some equally weighted funds designed to off-set each other in volatile times. Rebalance periodically. No recommendations. OTHH if one is reaching a point where that’s no longer an option, chunk it all in cash / cash alts or one of the several good options offered up by others.
Sounds like the wife is a consideration. Discuss with her and see what she might feel comfortable maintaining in your absence.
Comments
If not, do you have another bucket to generate income to supplement the monthly income needs ?
I directed my parents advisors to do similar and they too thought it was be easiest too. They are now in a single American Fund as opposed to 10 of them.
Thanks- OJ
If I was seeking a one-fund solution, I might go with VGWAX.
Jean-Marie Eveillard earned his reputation managing the SoGen International Fund¹ from 1979 until 2004.
Mr. Eveillard was named Morningstar’s International Manager of the Year in 2001
and received its first Fund Manager Lifetime Achievement Award in 2003.
Wealthtrack interviewed Eveillard in 2015.
https://youtu.be/Nd9MIJasr8I
¹ renamed to First Eagle SoGen Global Fund in 2000.
Simplification is to be preferred, indeed. But already, PRWCX (in T-IRA) is approx. 40% of my total. So, what's a mother to do? I've decided that it would be a bad idea for me to simplify so much that I run risks that are unnecessary. Just ordinary, run-of-the-mill investing is risky enough. I am also almost at a 50-50 stocks/bonds allocation. There's a bit in the MMkt.
Three single stocks:
2 banks, outside USA. BLX and FBP. And one of the biggest oil/gas midstream LPs, ET. I insist on dividends in my single company stock holdings. A hedge against the added risk.
Wife's IRA is in a single fund: BALFX.
I'm still holding (with hers) 8 individual positions, plus MMkt. Along with PRWCX I've got PRCFX, and that may well involve some overlap, but that's OK with me. I like the emphasis on bonds in PRCFX. Two of the 8 are junk bond funds. I could consolidate them, but one is deliberately in taxable, and I intend to grow it in order to tap monthly dividends, down the line.
This is about as simple as I can manage these days. Best wishes to all, in the endeavor.
SGIIX represents the Class I (Institutional) shares of the same fund.
I remember in mid 90s a Mutual Funds Magazine with Jean-Marie Eveillard and his SoGen Fund on the cover with same question “Only fund you need?”
Yes, it has been a very good fund since 1979.
Mutual Funds Magazine was launched in 1993 by the Institute for Econometric Research, a Florida-based financial publishing and advisory firm. The institute was co-founded by Norman G. Fosback. In 1998, the institute's publishing assets, including the magazine, were acquired by media giant Time Inc. And they likely merged it into Money Magazine.
I'll pass.
It's been part of my system since 2000, when I started with 5 funds.
I invested based on markets.
1995-2000 = 90+% in VTI, the rest in growth
2000-2010 = SGIIX/SGENX, FAIRX, OAKBX for 8 years; the other 2 funds were traded more often. I beat the SP500 by 10% annually.
2010-2017 = stocks: all US LC and the rest mostly in PIMIX
2017-current = changed to only 2-3 funds, all in bonds.
Hint: when US LC do well, invest only in them. When they don't, diversify.
Both SGIIX + TIBIX have done well = easy choice.
While VG have great indexes, it's much easier to find better managed funds in other categories than LC. See (https://schrts.co/ffZKvugI)
The distinction is the international exposure in the end. FCFWX is an allocation and BALFX isn't. We decided on FCFWX. its slightly less risky than the balanced fund. 60/40 as opposed to 65/35 and it had more international stocks.
My parents hold 2 years of cash in a money market fund, have a small annuity, and modest SS payments.
If one feels they have the mental acuity, knowledge, time I’d say go with some equally weighted funds designed to off-set each other in volatile times. Rebalance periodically. No recommendations. OTHH if one is reaching a point where that’s no longer an option, chunk it all in cash / cash alts or one of the several good options offered up by others.
Sounds like the wife is a consideration. Discuss with her and see what she might feel comfortable maintaining in your absence.