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.
MJG, I understand the intentions of your OP and thank you for bringing up the subject.
"Returns may not be relevant in the future" would apply to ANY investment philosophy including active managements improvise, adapt and overcome baloney sales p…
Merriman is soon to release a "motif like" all in one fund to replicate his 13 small slice portfolio which allocates among all sectors stocks and bonds domestic and international. His work is based on DFA research. According to him, this portfolio …
Gambling is not a word I want associated with my retirement portfolio.
"Would MFO exists if everyone indexed?"....I wish someone would have forum posted me senseless years ago about the virtues of indexing. It would have made me a lot more money.
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Within the last few years, Vanguard has begun moving towards recommending 4 Fund portfolios by adding international bond and stock allocations.
The Vanguard asset allocator calculator can be found here:
https://personal.vanguard.com/us/funds/tools…
Among Bogleheads the consensus is that Vanguard 3 Fund portfolio described in the article is the most effective overall investing vehicle. The author assumes we understood it. Most Bogleheads suggest using the Vanguard calculator to determine asset…
VBIAX changed their benchmark equity index 2005-06 timeframe. Since then they have outperformed 2 of the 3 listed (all 4 very close however). Survivorship bias is frequently overlooked in these type analysis.
Thanks for the input. Both Scott Burns and Merriman have shown splitting up the 60% equity side into US Large, US small, Reits, International and Emerging Mkts will outperform the CRSP US Total Mkt Index over time (VBIAX equity side of 60/40). My da…
tabs at top of screen to adjust a plethora of scenarios. Website default auto populates to 75/25 allocation. It looks like 50/50 at 3.5% withdrawal rate is bulletproof.
For a good site with many different withdrawal scenarios use:
http://paulmerriman.com/retirement-distributions-2016/
Click Best Advice....then Retirement distributions 2016.
You wonder how the 60/40 balanced approach will perform if this 35 year b…
I am not so much interested how we got there as I am the end result. I am focusing on the law change intent with the belief there is an identified need. The intent of the many numerous changes being made (TD 9783 included) is to encourage particip…
"Is this a great change? IMHO not really, but more of a non-event. Employers are offering annuities now..."
My opinion...I have worked for several Corporations in my career and found with certainty that there is a wide difference in quality …
The PBGC rate for 8/2015 was 1.50%. The PBGC rate for 8/2016 was 0.50%. This resulted in the 8% increase in the lump sum payout in the specific corp plan I reviewed. This particular corporate lump sum was based on a formula using numerous variable…
Yep. Doesn't have to be 1/2. Could be any combination. The more options the better. Many of my friends were forced to take lump sum to pay off debt at retirement even tho their debt was much less than the lump sum. The PBGC rate is at record low…
No you're right. Typo. I meant VGIT 20%. (or a target date fund with bond allocation included which should be around 10-20% at her age). I was in two different conversations at the same time with SSO. The target date fund resolves any rebalance de…
If it were my money at her age, I would wait for the next recession. I would use a global index for 80% and 20% SSO. Another reasonable suggestion would be a target fund using indexes. You need a Roth IMO. Caveat Emptor. Very sorry for your loss a…
Thank you msf. I have access to TIAA-CREF 3.0% SVF but requires a separate Supplemental Retirement Account to be established above and beyond the Retirement Account contributions.
"I stop automatic reinvestment of dividends in taxable accounts". Never understood why people do that. Determining cost basis exercise not worth it to me versus any possible benefit since reinvestment would compound at a minimal rate if in an equi…
At a roundtable years ago CEO's and business leaders were discussing shifting jobs overseas and outsourcing in general. The discussion resulted in a near unanimous opinion this would be a good thing for America. After all, we were going to be a se…
I remember the day that the only way to analyze companies was to requested hard copies of the Q's and K's directly from the company. It was not available anywhere else. I can remember some regional funds doing very well back then probably due to th…
"Nothing about retail prime funds being especially prone to risk"
I believe all MM's carry risk. The possibility of losing .01c means prone to risk in my mind compared to the history of MM's (for the most part) holding the buck in past years…
Ironically the best place to be (for several more months) might be the very place they are claiming is risk prone (Prime). Where Gov't MM's level out at is unknown at present until money flows stabilize. Prime yields are juicy at Vanguard. Switch f…
I think the increase in market volatility makes active management increasingly difficult. When a company misses earnings by a penny the stock sells off by 15% or when you buy the right stock at the right price and it does not behave as it should (e…
The September rate was finalized this morning at 0.50% by the PBGC. Lowest on record in years. Will be interesting to see what % increase lump sums get as a result from the 60% drop YOY.
Fool me once shame on you, fool me twice........The stock market is much more volatile and moves much quicker than olden days. Things develop before you can confirm things have developed..... so gov't MMF only for me. I was in the Reserve Fund in 2…
I am going to stick with the two MM's I mentioned above because they are the highest yielding gov't funds available in those two brokerage firms. Small difference w FZCXX at Fidelity. The brokerage bank account option is confusing because Scottrad…
I have pondered this dilemma for decades. I have learned that if you ask the "should I sell my $7 cost basis" question to professional money managers or salesmen or commissioned employees or brokers, etc they will ALWAYS advise you to sell. The re…
Based on my initial investment of 7000 shares at $7/sh = $49k I would be getting $9800 each year in dividends. My cost basis would never change and my dividends would never change. The interest earned is not reinvested in shares. All income is hel…
