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.
Assuming you are talking about an immediate fixed income annuity, the biggest disadvantage are the low record interest rates and hence they aren't paying out much of anything. The way to go is a longevity annuity aka deferred income annuity. Howev…
Back to small cap biotech albeit so far only around 2% to 3% with the rest in cash for the moment. My fave is HZNP and bought that after their offer for DEPO Tuesday where I had a position and sold. Stocks are not my thing. I can pick em but sure …
Many thanks bee. I thought I had read everything on the topic of QLACs but your link was a new one for me. I had never thought of the staggered approach so will have to do some computations on that.
>>>This thread gets me back to a theme I've been posting on (some might say excessively) lately - guaranteed income streams. Whether from immediate annuities, SS, or longevity insurance, they do help to relieve concern about needing to save…
Didn't read the link. But just from personal experience, I can't think of anything that has had a more favorable impact on me financially than not having a mortgage. I realize though that is not feasible for many, especially younger folks.
>>>High-Yield Bond Funds: Don’t make the mistake of focusing on interest rates and missing a potentially bigger problem for bond fund prices — credit risk. High-yield bond funds are providing great yields for investors in a low-yield enviro…
I have given annuities a lot of thought recently in my retirement planning. The only that ones that make half way sense are deferred annuities. And there especially the ones where the recent Treasury rule allows you to exempt up to $125,000 in yo…
I tried this calculator for N=10 (payments to age 95) and came up with 7.61% rate.
With N = 5 (payments to age 90), the return is 4.49%.
Thanks - neither of those returns seem very interesting.
Many thanks msf for your usual exhaustive and ex…
I have always been against annuities. The first link explains why you should never buy an annuity. But the second link about the new rule where you can purchase up to $125,000 of a deferred annuity with IRA money that won't go against your RMD sou…
@msf- Well, whatever you do, you are one hell of a great asset to the rest of us here at MFO, and I thank you for that!
+1 I think he is in a class of his own here.
I have always believed those who brag are about to meet their comeuppance in some shape or form. Hopefully in my case it won't be a stroke or heart attack soon but.....
I weigh the same as I did when I graduated high school in 1965. But at least I …
I am seriously thinking about buying a second home in the mountains of western NC. I would think at some point Baby Boomers like myself are going to unleash that which they have wrought over a lifetime of saving. Agree with bee that will be stimul…
Gundlach was predicting that in 2015 the 10 year could potentially take out its modern day era low of 1.38%. It got down to around 1.64% and then the big bad bear began as we are now at 2.40%. This week was the largest weekly rise in yields since …
This year or next, it will probably be a non event when the FED does raise. Or it could be bullish as the most anticipated market event in recent history is out of the way. Isn't it three steps and a tumble anyway? I would be more concerned with t…
Frank, one of my junk hybrid funds (just exchanged into yesterday) was actually up today - RIMOX. I may have to increase there. The rest of the open end held remarkably well but sometimes there is a one day lag effect. So we shall see tomorrow.
Frank, at least for me I was never fond of hedging because you have two decisions instead of one, i.e. when to lift the hedge. The junk funds have been flat but on a total return basis made all time highs as recently as Friday. After the close tod…
A thousand pardons. I should have known that. Blame it on lack of coffee or lack of brain cells. I choose both.
I knew you knew that. Just fooling with you.
Thanks David for the additional comments. The talk of a broken market has been a topic for a while now. Gundlach mentioned it on the new WSW. I still felt the June commentary was far more bearish in nature than the previous installments. If anything…
>> The markets were already in established downtrends before that time.
Not so much, at least 1987 not at all. Look at SP500 and FCNTX. For 7y ago, yes, this week right now was the very week of turn. Not much of a trend prior, spring 08.
I…
With apologies to OJ, Jerry and the others, Ted was the first to note that David's June Commentary was posted. I'm afraid my initial tongue-in-cheek remark may have been inappropriate or misinterpreted. It was intended to induce others to read this …
October 19, 1987 and October 2008 did not come out of the blue. The markets were already in established downtrends before that time. David you give far too much credence to "the smartest of the smart money people" In almost fifty years in the gam…
Don't bear markets usually start either when the economy peaks and begins to tip into recession, or when interest rates rise either sharply or extensively? A 10% correction or so can happen any time, but a full-fledged bear market? I don't see it. A…
>>>But, if the projections are made independently from each other, there is some merit to an assembly of the wisdom of crowd approach. Therefore, collecting predictions from a band of honest practitioners is not an entirely bad idea.
Also, somewhat related, I would wager the average MFO "small fry" has outperformed the average "large fry" hedge fund over the past decade and most certainly since 2008. Knowledge is very over rated in this game. It's all about how you manage risk!
But you do know these Dream Merchants have no more insights or clues to where the markets are headed than you, me, or the man in the moon??
I think their main job and money making is to get paid subscribers. I think also, that the value of the…
I found some of the info in your post interesting so thanks. But you do know these Dream Merchants have no more insights or clues to where the markets are headed than you, me, or the man in the moon?? In 1999, I spoke at a Las Vegas trading sympos…
BobC, Obviously I agree with you about being debt free and its impact on retirement. That should be Rule #1 with frugality Rule#2. But I still believe there is no right or wrong answer on when to take retirement. I know more than a few that never…
I am bearish and that's good for a continued uptrend in the markets. Meaning I am a good contrary indicator. When I was a more active trader and into equity funds there were times I was so bearish that I would be a buyer. Sounds counterintuitive b…
Junkster, what do you like for those of us who want a tax-exempt bond fund?
Walt, there are others more qualified than me that could answer that. When it comes to tax exempt I only trade/invest in high yield munis. Last year was their year to shin…
Dex, STHBX a dog of a dog. In the same short term junk arena it is completely outclassed by ASHDX and OSTIX.
I was going to suggest a combination of OSTIX and WHIYX.
ASHDX has a short history from what I have researched.
Bee, I was in (and out)…
Dex, STHBX a dog of a dog. In the same short term junk arena it is completely outclassed by ASHDX and OSTIX.
Edit: You are lucky to have a pension. Shouldn't you be just fine once you begin taking SS? You may still have a little out of pocket b…
Regarding my disdain for Monte Carlo and will try in the future to just stay out of discussions where it is brought up. I am not rich/wealthy or remotely close. But I am single, debt free, and frugal. The 90s were good to me, especially 98 and 9…
Hank, what you and icyone added is really the guts of this discussion. Try to live healthy and well and spend less than you earn or take in. The big gotcha which has destroyed many a well thought out or best laid plan are those unexpected healthcare…
>>>>- Did anyone mention that staying healthy for as long as possible is an "investment" - and one you have a great deal more control over than stock and bond market gyrations? I'm talking about not smoking, limiting alcohol intake, lots…
