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.
I have PRWCX in my Traditional IRA at T.Rowe but not among my Roths. Guess I could convert just $1,000 (their minimum IRA account requirement) of PRWCX to a ROTH and than move as much other Roth money into it as I wanted? Heck, they might not even …
"If a shareholder closes an account in the Fund due to redemption or exchange, the shareholder will no longer be able to make additional investments in the Fund."
If I have two accounts in the fund (say an IRA and a taxable account) and I close the…
The 20% rule is for deferred compensation plans, not for IRAs. You do sort of have the right idea that the way to avoid the mandatory withholding on employer plans is to do a direct transfer.
No withholding (unless you want it) on any IRA distrib…
BobC and VF each highlight interesting questions, as there are at least two different perspectives on each of their issues.
What is the responsibility of a corporation? Corporations owe their legal existence (shielding shareholders from personal …
Regarding bond funds - Vanguard funds will always merit consideration, because for bond funds the correlation between cost and performance is quite strong. Why another bond fund? Because one rarely gets an actively managed bond fund at this low …
Rather cryptic until one realizes that Loomis Sayles is merely rearranging its share classes today. Retail and I shares no longer exist, so of course they can't be purchased or redeemed.
Class I (this share class) -> Class Y
Class Retail -> …
What is being targeted is investors, not asset allocation. To paraphrase what 00BY wrote, the fund is designed for (targeted to) investors who want a fully invested, volatile (concentrated) fund.
There is nothing in the prospectus (or SAI) saying…
I would go even further. If someone (regardless of age) were expected to live two years or less (think Run For Your Life NBC series), one might ensure there was 2-3 years of cash and then put everything else into equities (for the longer living hei…
Not that many years ago I had my mother take advantage of Vanguard Financial Plan service. (Unfortunately Vanguard no longer provides these free plans to its better heeled clients.)
The writeup was age-appropriate and very Vanguard-ish, emphasizi…
AAPL is a good chunk (12-15%) of technology index funds like IYW, XLK, FTEC, VITAX. But I don't think the concern is one of sector funds taking over the market. In broad based indexes like the S&P 500, AAPL represents about 3%. Would people …
Sigh. Why are so many of the popular financial "press" pages wrong?
Investopedia is correct in saying that net worth excludes value of home except when it is underwater. But in its examples (e.g. Carla), the investors are not underwater. Carla…
I wonder how many people believe the statement in the article: "[index funds] own[] essentially all the stocks or bonds in a market basket all the time."
Index funds tracking indexes that are limited to large, liquid securities do tend to use full…
@Ted 's transcription is correct. But I doubt any MMF ever grows weary of rolling over paper. To paraphrase GEICO, if you're a MMF, that's what you do.
Rather, given the rate of outflows, prime MMFs are likely wary of rolling over paper into ne…
The proposal doesn't do away with paper. It just makes paper opt-in, rather than opt-out. Even if you've chosen electronic, it would require funds to send a printed version at no cost on demand, within three days of your request.
The proposal do…
The Long/Short Equity space is very troubled, as there have been very few funds which have had attractive long-term performance, and the expenses of such funds are inherently high, which serves as a drag for future performance. Whenever I look at …
Long term should have nothing to do with it. What matters is the cost of entry to the market, not how long you stay in it. In this regard, lump sum usually beats buying in over a period of time (say a year, though the length is not important). …
Thanks guys, but as the saying goes, it is better to be lucky than smart.
I'd looked into this because of a fluke event, not because of personal interest. Though I'll admit to a bit of curiosity about how the other half (whoops, 1%) lives.
I h…
You know this about perma-inflation Singer, right?
Ah, so he was the one; I was telling someone about the terrible Hamptons r/e inflation the other day and couldn't remember what caricature of a clueless zillionaire had said it.Yes, but that articl…
Bloomberg should tell the truth. Retail prime funds are indeed affected by the new rules, as has been extensively discussed here - gating and fees on redemptions. Nor were institutional investors under any delusion about the possibility of losses…
I did know about these, but in part that's because one invested in an insolvent company from which I'd previously disassociated myself. Out of curiosity, I did a fair amount of digging at the time.
These are for people who want to have private of…
Sigh. Burns is crossing over from polemics to just plan wrong facts - wrong to the point of being dangerous.
In his answer to the second question, he says that you can split RMD among all your plans, be they employer plans (e.g. TSP, 401(k)), be …
@davidmoran - One of the things people don't pay enough attention to when looking at tax efficiency is what one gets, after-tax, when cashing out.
Though DSENX appears to have a similar tax cost to LCV long term figures (in the 1.5% ballpark), this…
So far, DSENX has done what it has promised. It is one of a class of funds typically offered by bond houses (e.g. MetWest, PIMCO, DoubleLine) where the sponsor tries to apply its bond expertise to the equity market via derivatives.
Looking at …
The fact sheet and prospectus both state that "The Fund’s investment objective is to seek total return which exceeds the total return of its benchmark index."
The fact sheet goes further to claim that the benchmark is the S&P 500. (In case ther…
Right about now @Roy may be wondering why no one (except Junkster) responded to his thread on Synthetic Investments like MetWest AlphaTrak 500 MWATX.
http://mutualfundobserver.com/discuss/discussion/28903/synthetic-investments
Enhanced funds where …
This is in a sense a followup to the MFO post: M*: Will You Sacrifice Returns For Income?
http://www.mutualfundobserver.com/discuss/discussion/29065/m-will-you-sacrifice-returns-for-income
M*'s thesis is that objective-based funds do tend to achiev…
My error on PRRXX. Apparently at the end of March TRP issued a supplement to the prospectus stating that it was converting, as Hank indicated, to a government MMF.
If I were keeping money in a TRP MMF, I'd probably also stick with PRRXX (yielding…
Ah Zacks. With insightful observations:
- "American Century Global Gold Investor ... invests a bulk ... of its assets in ... companies which are involved in ... gold."
- "T. Rowe Price New Era ... invests more than two-thirds of its assets in …
Lots of misinformation all around. The article says that Legg Mason Opportunity Trust is seven years old. While its class A shares (LGOAX) began Feb 3, 2009, the fund itself (Class C, formerly Primary Class) LMOPX began December 30, 1999.
M*'s p…
If you've got a Schwab brokerage account, that's a reasonable compromise between convenience and yield. You could get better bank yields elsewhere, but you won't be able to have that money "instantaneously" transferred to your brokerage account as…
Sometimes I think we need a Venn diagram. One can partition MMFs into retail and institutional, but one can also partition MMFs into government and non-government (prime and muni). Both distinctions are important.
1. Government - fixed NAV, o…
Most people worry about losing money, hesitant to lose 0.01% but accepting a yield of 0.01%. Though they may be indifferent to a spread of several basis points, so long as neither choice loses money, nominally.
Of course all the choices lose m…
@Ted, I think you found the needle in a haystack - a clearly written, accurate, objective, informative investment article that also gives background, providing context. Thanks.
Why would Vanguard offer VMFXX (gov't) at a 0.30% yield and Fidelity's best gov't fund is FDRXX at .11%?Because Fidelity is a profit making organization and Vanguard isn't? Fidelity is actually outperforming before taking out its expenses (profits…
If you open an account with AC and move it to Fidelity or Vanguard, you should be able to trade that account. Always worth checking beforehand, though. Some fund families have gotten wise to this and put a restriction on transferring new account…
ACMVX is open to new investors. From the summary prospectus:
"As of November 1, 2013, the fund is generally closed to new investors other than those who (i) invest directly with American Century (where American Century is listed as the dealer of r…
Assets in a Roth are all taxed the same (i.e. usually not taxed). Nothing special about collectibles.
I'm not sure what the question means. Contributing to a Roth always beats not contributing to any IRA, regardless of the investment, so long …
Bob, for any one who has decided to invest -- not trade -- AU, I'd recommend they consider purchasing/holding physical AU.
The primary reason I suggest this, is that unlike owning mining stocks, bullion ETFs, or OEFs, buying/holding the physic…
Interesting choice. It looks like you've highlighted the key difference between the two funds. Though I might add that as a consequence, DBLFX's broad allocations (government, corporate, securitized) hew much more closely to that of the typical f…
Exactly.
Yet Vanguard asserts: “We will seek appropriate disclosure on ESG issues by the entities in which we invest.” (From the 2014 article I cited above.) Apparently Vanguard feels absolutely no environmental disclosures are "appropriate".…
