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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.
  • Top T. Rowe Price Funds for Retirement
    https://money.usnews.com/investing/funds/articles/top-t-rowe-price-funds-for-retirement
    6 Top T. Rowe Price Funds for Retirement
    T. Rowe Price funds can add diversification to a retirement portfolio.
    T. Rowe Price Retirement 2030 Fund (ticker: TRRCX)
    T. Rowe Price Retirement 2040 Fund (TRRDX)
    T. Rowe Price Capital Appreciation Fund (PRWCX)
    T. Rowe Price Blue Chip Growth Fund (TRBCX)
    T. Rowe Price Mid Cap Growth Fund (RPMGX)
    T. Rowe Price Health Sciences Fund (PRHSX
    johnN johnN in Fund Discussions
  • Miller/Howard Drill Bit to Burner Tip® Fund to liquidate
    https://www.sec.gov/Archives/edgar/data/1657267/000089418919008228/mhft_497e.htm
    497 1 mhft_497e.htm SUPPLEMENTARY MATERIALS
    Miller/Howard Drill Bit to Burner Tip® Fund
    Class
    Ticker Symbol
    Class I
    DBBEX
    Adviser Share Class
    DBBDX
    (A series of Miller/Howard Funds Trust)
    Supplement dated December 9, 2019 to the Prospectus, Summary Prospectus and
    Statement of Additional Information (“SAI”) dated February 28, 2019, as amended
    Based upon a recommendation by MHI Funds, LLC (the “Adviser”), the Board of Trustees (the “Board”) of Miller/Howard Funds Trust (the “Trust”) has approved a plan of liquidation for the Miller/Howard Drill Bit to Burner Tip® Fund (the “Fund”) as a series of the Trust, pursuant to which the Fund will be liquidated on or around December 31, 2019 (the “Liquidation” or the “Liquidation Date”). The Adviser has determined that the Fund has limited prospects for meaningful growth. As a result, the Adviser and the Board believe that the Liquidation of the Fund is in the best interests of shareholders.
    In anticipation of the Liquidation, effective as of the close of trading on the New York Stock Exchange (“close of business”) on December 10, 2019, the Fund will be closed to new investments. In addition, effective December 9, 2019, the Adviser may begin an orderly transition of the Fund’s portfolio securities to cash and cash equivalents and the Fund may cease investing its assets in accordance with its investment objective and policies.
    Shareholders may voluntarily redeem shares of the Fund, as described in the Fund’s Prospectus, before the Liquidation Date. Shareholders remaining in the Fund just prior to the Liquidation Date may bear increased transaction fees in connection with the disposition of the Fund’s portfolio holdings. If the Fund has not received your redemption request or other instruction by the close of business on December 31, 2019, your shares will be automatically redeemed on the Liquidation Date. Shareholders will receive a liquidating distribution in an amount equal to the net asset value of their Fund shares, less any required withholding. For shareholders that hold their shares in a taxable account, the redemption of Fund shares will generally be treated as any other redemption of shares (i.e., a sale that may result in a gain or loss for federal income tax purposes). Your net cash proceeds from the Fund, less any required withholding, will be sent to the address of record.
    If you hold your shares in an individual retirement account (an “IRA”), you have 60 days from the date you receive your proceeds to reinvest or “rollover” your proceeds into another IRA in order to maintain their tax-deferred status. You must notify the Fund’s transfer agent at 1-845-684-5730 prior to December 31, 2019 of your intent to rollover your IRA account to avoid withholding deductions from your proceeds.
    If the redeemed shares are held in a qualified retirement account, such as an IRA, the redemption proceeds may not be subject to current income taxation. You should consult with your tax advisor on the consequences of this redemption to you. Checks will be issued to all shareholders of record as of the close of business on the Liquidation Date.
    Please contact the Fund at 1-845-684-5730 if you have any questions.
    This supplement should be retained with your Prospectus, Summary Prospectus and SAI for future reference.
    TheShadow TheShadow in Fund Discussions
  • 5 ETFs for Oodles of Monthly Dividends
    https://investorplace.com/2019/12/5-etfs-for-oodles-of-monthly-dividends/
    5 ETFs for Oodles of Monthly Dividends
    Dividend ETFs can provide plenty of needed monthly income in retirement
    johnN johnN in Fund Discussions
  • Target Date Comparison - Aren’t They All The Same?
    T. Rowe Price has two series of target date funds: the original series now called Retirement Funds and its newer more conservative series that it calls Target Funds.
    Price describes the latter as "offer[ing] lower volatility -- and lower potential long-term growth -- than Retirement Funds by emphasizing bonds near the target date."
    M* shows the glide path of the former as having a high, but not the highest, equity allocation as seen in the graph on this page:
    https://news.morningstar.com/pdfs/STUSA04OMN.pdf
    Fidelity has so many lineups it's difficult to keep track of them. Its Simplicity RMD funds were formerly Income Replacment Funds that were overhauled in 2017. It has Managed Retirement Funds, Freedom Funds, and Freedom Index Funds.
    Regarding the latter, M* observed that "Despite the notable cost advantage, each Freedom Index fund lagged its Freedom series counterpart since the Freedom Index series' late-2009 launch through December 2018 .... The absence of active management and certain subasset classes, like high-yield bonds, from Freedom Index contributed to these results."
    Then they've got a series I'd never heard of: Freedom Blend Funds. In case you can't decide between active (Freedom) and passive (Freedom Index) management, these "blend" funds use both. Did I mention that Fidelity also has Fidelity Advisor (load) versions of these funds as well?
    msf in Fund Discussions
  • M*: A Well-Built Balanced Fund For Retirees: (TRRIX)
    Yes, TRRIX looks good to me, apart from the paltry dividends. I still am enjoying my own mix. In order of size: PRWCX RPSIX PRSNX PTIAX PRIDX VEIRX (wife's 403b soon to be moved to TRP as a rollover IRA.) and lastly, PRDSX. .....In full retirement, and wife will commence work again in 2020. I'm paying monthly rent. Nobody wants to still be doing that in retirement, but it simplifies everything, with water and electric included. And I'm rid of a house the family had owned since 1959--- which I've hated for as long as I can remember. And snow is now a thing of the past for us. ...Though I did get caught in the rain on my walk today. 5 mins. from the house. The little guy here just lights up your heart when he smiles at you. We're sharing with cousins. It really feels like FAMILY. :)
    Crash Crash in Fund Discussions
  • Matthews Asia Strategic Income Fund getting a new name
    “we got the name wrong on our first try” or “we’re not achieving what our fund name suggests”?
    I get your point. Not knowledgeable about these guys, so I’ll take a pass.
    About 8-10 years ago T Rowe did the same thing with TRRIX. Changed name from “Retirement Income Fund” to “Retirement Balanced Fund.” I was fine with that. I took them at their word that the new name better reflected the fund’s existing framework. Possibly the “income” part of the original name was misleading to some investors and suggested a less risky approach than the fund pursues. Also (I think importantly) prevailing interest rates in the U.S. and globally had fallen steeply during the fund’s relatively brief existence so that less income was being generated from the bond component than earlier envisioned.
    Another one that baffled me a bit was TRIGX. Initially it was named T. Rowe Price International Growth and Income Fund. Than (also about 8-10 years ago) they renamed it International Value Equity Fund. They gave the same reason: to more accurately represent the investment approach the fund follows.
    Shakespeare might say, “What’s in a name ...?” For mutual fund managers who find themselves in the midst of an investor class action lawsuit, perhaps quite a bit. Case in point - Oppenheimer’s “Core Bond Fund” which lost 36% in 2008. http://shareholdersfoundation.com/case/oppenheimer-core-bond-fund-investors-class-action-lawsuit-05282009 One can surmise that the litigation, ill will and investor exodus occasioned by this episode did much to hasten the demise of Oppenheimer.
    hank in Fund Discussions
  • December Commentary is Posted ...
    Hi, Ben.
    I've got three portfolios, which I can't much change.
    My college's retirement account is through TIAA-CREF. That money can't be easily moved anywhere. Currently it's four funds, with most of the money in a lifecycle fund and a real estate income fund.
    My supplemental retirement is through T. Rowe Price and my college cut their relationship with Price, so I can't add to it. Currently it's five funds, with most of the money in a lifecycle fund and EM value equity.
    That's all easy because only two retirement funds are receiving monthly additions and I've simplified the others to stress the lifecycle core.
    Finally, my non-retirement portfolio is 10 funds with I recently reduced by closing two positions (combined the two RiverPark income funds into one and eliminated Intrepid Endeavor in favor of adding to FPA Crescent and Brown Advisory Sustainable). The next question is whether to consolidate the two Grandeur Peak positions (Global Reach and Global Micro-cap, with a correlation of .94, Reach has a higher four-year sharp, Micro is more intriguing) and the two Matthews positions (Strategic Income and Growth & Income, with identical Sharpe ratios and .92 correlations between G&I and Seafarer, and a vastly higher Sharpe ratio for Strategic Income).
    So, that might go to eight funds with four currently receiving monthly additions.
    What do you think?
    David
    David_Snowball in Fund Discussions
  • good morning, just questions for colleague
    I think your simple suggestion of a 2040 target date fun is a very good base for investing John. Fund collecting may be fun, but in my opinion not productive to total return. And you should press upon him rforno's excellent point, if you want to play the game of day trading, do it with your fun money, not your retirement future.
    MikeM MikeM in Fund Discussions
  • good morning, just questions for colleague
    If your friend is 12 years away from retirement, why is he / she only now taking an interest in investing?
    Not much to go on here. Does he have access to a tax deferred plan at work? (I suspect not based on your question.) Does he by chance look forward to a pension or some kind of “buyout” that will assist him? There are many different investment vehicles depending on type of work, tax status, etc. Others here know more about alternatives to the traditional 401K than I do.
    Good advice from you to learn more. My biggest source of help in the early going was from co-workers who had been at the game longer. A good global stock fund sufficed for the first 20 years. But I was young enough than not to worry about every market flux. Your friend may not have that advantage.
    I’ve found “learning” about investments / investing to be a slow multi-year process (a long learning curve ). One doesn’t just pick up a book or two and suddenly know everything. BTW - I like “The Only Investment Guide You’ll Ever Need” by Andrew Tobias as a good quick easy to read book for the novice investor. He’s updated it over the years. I recently did a quick re-read. Available in print or download at Amazon. Of course, there are longer more comprehensive books for the serious student.
    hank in Fund Discussions
  • M*: A Well-Built Balanced Fund For Retirees: (TRRIX)
    +1
    While I don’t currently own TRRIX, I like it a lot. Readers may recall that I’ve long benchmarked against it. It provides an appropriate yardstick against which, I think, for someone in retirement to compare not only total return, but also the short and long term volatility implicit in their investments. A fine fund any way you cut it - though some will criticize it as too expensive in terms of ER.
    @Ted - Your Colbert Butterball video is a hoot! :)
    hank in Fund Discussions
  • M*: A Well-Built Balanced Fund For Retirees: (TRRIX)
    FYI: T. Rowe Price Retirement Balanced features an inspiring mix of funds.
    Regards,
    Ted
    https://www.morningstar.com/articles/957550/a-well-built-balanced-fund-for-retirees
    Ted Ted in Fund Discussions
  • Jonathan Clement's Blog: Missing The Target: TDFs
    Link or no link, IMHO this is obvious. Target date funds are designed to manage an entire portfolio for a hands off approach. If an investor isn't using the TDF for virtually one's whole portfolio, then the investor isn't buying into that idea, and the glide path won't work as designed.
    I've since modified my view to include a couple of variations:
    1. TDFs are designed with retirement glidepaths. If one is planning to bequeath an investment to someone, it might make sense to put that investment into a separate TDF with a target date matched to the legatee's age. This expands the ability to use TDFs in a hands-off manner.
    2. On the opposite end of the spectrum, some people want to be actively involved in managing their portfolios. A TDF's glidepath may not exactly match what they they want, e.g. they may want equities a bit higher than the glidepath in pre-retirement and a bit lower in early retirement. Such investors could build their own portfolios and manage their own glidepaths. Or they could use a TDF as the foundation ("core") of their portfolio and manage smaller complimentary investments to fine tune their holdings.
    Here's the Humble Investor post by "Mark Eckman, a data-oriented CPA with a focus on employee benefit plans."
    https://humbledollar.com/2019/11/missing-the-target/
    msf in Fund Discussions
  • Jonathan Clement's Blog: Missing The Target: TDFs
    FYI: USE THE RIGHT tool for the job and you’ll get the best result. If you need to connect two boards, you could use a hammer and a nail or a screwdriver and a screw. Either methods work—and they’re certainly better than banging in a screw with a hammer, which I’ve seen tried. It was not effective.
    Participants in 401(k) plans, alas, display similar behavior with target date funds, or TDFs. A TDF offers a diversified portfolio in a single fund, with the mix of stocks and bonds changing as you approach retirement. When used correctly, the fund’s asset allocation should be appropriate for your age—aggressive while you’re young and becoming more conservative as you age. There’s no need to trade or adjust the mix. The fund does that automatically. The evidence, however, suggests many people use TDFs incorrectly.
    Regards,
    Ted
    Ted Ted in Fund Discussions
  • looking for input: amount of brokerage information to share
    Hi, guys.
    Several months ago a reader asked if we could include brokerage availability information with all of our single-fund articles (profiles, Elevator Talks, Launch Alerts). That seemed like a reasonable request, so I started hunting. The information used to be available on Morningstar.com but no longer is.
    I was in conversation with the folks at Morningstar and they offered to provide their master list of brokerage availability to use with our articles; the only condition was that the list of "for internal use only," which means that I can extract information about an individual fund's availability in the course of an article but I can't give folks access to the list itself.
    Fair enough. Generous, actually.
    Here's the place where I'd like your help. How much brokerage information should we list? The easy answer is "all of it," but "all of it" is a swamp. FAMEX, for example, has 80 listed brokerage options including multiple listings for many platforms (Schwab One Source, Schwab NTF, Schwab Institutional ...). Here's what it looks like, straight from the master list:
    Ausdal Financial Partners Inc;Cetera Advisors LLC;Cetera Advisor Networks LLC;E TRADE Financial;Mid Atlantic Capital Corp;Pershing FundCenter;EP Fee Small;Shareholders Services Group;JPMorgan;Merrill Lynch;T. Rowe Price;TD Ameritrade Trust Company;LPL SAM Eligible;Fidelity Retail FundsNetwork;Fidelity Retail FundsNetwork-NTF;Fidelity Institutional FundsNetwork;Fidelity Institutional FundsNetwork-NTF;DATALynx;Dreyfus NTF;Federated TrustConnect NTF;Mony Securities Corp;SunAmerica Securities Premier / Pinnacle;Vanguard NTF;ETrade No Load Fee;SunGard Transaction Network;Royal Alliance;Bear Stearns No-Load Transaction Fee;CommonWealth Universe;Robert W. Baird & Co.;JPMorgan INVEST;WFA MF Advisory Updated 2/01/2019;RBC Wealth Management-Network Eligible;DailyAccess Corporation RTC;DailyAccess Corporation FRIAG;Sterne, Agee & Leach, Inc.,;EP Fee Large;ING Financial Ptnrs PAM and PRIME Approv;Ameritas NTFN;Ameritas NTF P;Firstrade;Scottrade NTF;Standard Retirement Services, Inc.;TIAA-CREF Brokerage Services;Pershing FundVest NTF;Matrix Financial Solutions;Trade PMR Transaction Fee;ING Financial Advisers - SAS Funds;Mid Atlantic Capital Group;HD Vest - Vest Advisor;Securities America Advisors;Bear Stearns;Securities America Advisors Top Rated;Protected Investors of America NTF;JP MORGAN NO-LOAD NTF;JP MORGAN NTF;JP MORGAN NO-LOAD TRANSACTION FEE;TD Ameritrade Retail NTF;TD Ameritrade Institutional NTF;TIAA-CREF NTF;MSWM Brokerage;WFA Fdntl Choice/PIM Updated 2/01/2019;DailyAccess Corporation Mid-Atlantic;RBC Wealth Management-Wrap Eligible;E-Plan Services, Inc.;Investacorp NTF;ING Financial Partners Inc.;Securities America Inc.;Nationwide Retirement Flexible Advantage;JP Morgan No Load;Merrill Edge;DailyAccess Corporation Matrix;DailyAccess Corporation MATC;LPL SWM;Schwab All (Retail, Instl, Retirement);Schwab OneSource & NTF (No Load & No Transaction Fee);Pershing Retirement Plan Network;HD Vest;Commonwealth (NTF);Commonwealth (NTF - PPS/Advisory);Commonwealth (PPS/Advisory);
    Uh ... ick.
    This project is being handled by David Welsch, who is learning to do all of the technical stuff as part of our business continuity planning. Good guy. Bright. Good spirited. But not a fund industry obsessive, so I'll need to provide very specific directions to keep it manageable and consistently high quality.
    The easiest option is to include every platform, but just once. That cuts JPMorgan from six to one, and reduces the list from 80 to 43:
    Ameritas NTF P; Ausdal Financial Partners Inc; Bear Stearns; Cetera Advisors LLC; Commonwealth (NTF); DailyAccess Corporation RTC; DATALynx; Dreyfus NTF; EP Fee Large; E-Plan Services, Inc.; ETrade No Load Fee; Federated TrustConnect NTF; Fidelity Retail FundsNetwork; Firstrade; HD Vest; ING Financial Advisers ; Investacorp NTF; JP MORGAN NO-LOAD NTF; LPL SWM; Matrix Financial Solutions; Merrill Lynch; Mid Atlantic Capital Group; Mony Securities Corp; MSWM Brokerage; Nationwide Retirement Flexible Advantage; Pershing FundVest NTF; Protected Investors of America NTF; RBC Wealth Management; Robert W. Baird & Co.; Royal Alliance; Scottrade NTF; Securities America Advisors; Shareholders Services Group; Standard Retirement Services, Inc.; Sterne, Agee & Leach, Inc.; SunAmerica Securities SunGard Transaction Network; T. Rowe Price; TD Ameritrade Retail NTF; TIAA-CREF NTF; Trade PMR ; Vanguard NTF; WFA Fdntl;
    So the Ausdal's of the world continue to clutter the list and lots of those brokerages have details (SWS versus SAM in the case of one firm, Fdntl for another) that are significant but not worth our time to suss out.
    The second option is to include only the top tier brokerages, once we fiqure out who those are (it's Schwab but is it LPL? Baird?). So:
    The fund is available through 80 platforms or programs including ETrade, Fidelity, Firstrade, JP Morgan, Merrill Lynch, Pershing, Robert W. Baird & Co., T. Rowe Price, TD Ameritrade, TIAA-CREF and Vanguard.
    Which works only if we agree on which names to have David look for. It also strips out the infinite variety of fee levels; JPMorgan had six entries because it is sometimes NTF, sometimes Institutional, sometimes Load ...
    Curious, as ever, about your thoughts.
    David
    David_Snowball in Fund Discussions
  • Social Security ‘Bridge’
    Lots of discussion about waiting till 70 to take social security. I was going to wait until 70, then 2 friends died at 67 without ever drawing from social security. I started taking it at my full retirement age; haven't looked back; enjoy the money every month; waiting till 70 sounds enticing if you live that long; government is betting you won't.
    Patrick1 in Fund Discussions
  • BUY - SELL - HOLD - November 2019
    Hi @Starchild,
    Thanks for your comment and question that you directed my way. Many of my American Fund holdings came to me via gift and inheritance with some of the funds dating back a couple of generations thus being in family hands all the way back to my great grandfather. As my great grandfather and grandfather sold off farm land they invested the sale proceeds and spread it out among family members with some of it being invested in American Funds. We also have a policy of not putting all of our eggs in a single basket.
    Starchild I'd like your thoughts on where I overlap. Please consider manager stradegy with your answer as the funds might occupy the same style boxes, etc. but the managers themselves differ using many different investment strategies. Notice I've got growth, value, momentum, contrarian, equity dividend, fixed income of many types, special opportunity, etc.
    I'm posting my sleeve management system along with portfolio positions so you have an understaning of what I actually do own for a better understanding of how I govern family money.
    Consolidated Master Portfolio & Sleeve Management System ... Last Revised on 11/15/2019
    Now being in retirement here is a brief description of my sleeve management system which I organized to better manage the investments held within mine and my wife's portfolios. The consolidated master portfolio is comprised of two taxable investment accounts, two self directed retirement accounts, a health savings account plus two bank savings accounts. With this, I came up with four investment areas. They are a Cash Area which consist of two sleeves ... an investment cash sleeve and a demand cash sleeve. The next area is the Income Area which consist of two sleeves ... an income sleeve and a hybrid income sleeve. Then there is the Growth & Income Area which has more risk associated with it than the Income Area and it consist of four sleeves ... a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. Then there is the Growth Area where the most risk in the portfolio is found and it consist of five sleeves ... a global growth sleeve, a large/mid cap sleeve, a small/mid cap sleeve, an other investment sleeve plus a special investment (spiff) sleeve. The size of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds held and their amounts. By using the sleeve management system I can get a better picture of my overall investment landscape. I have found it beneficial to Xray each fund, each sleeve, each investment area, and the portfolio as a whole quarterly for analysis. All my funds with the exception of those in my health savings account pay their distributions to the Cash Area of the portfolio. This automatically builds cash in the Cash Area to meet the portfolio's disbursement needs (when necessary) with the residual being left for new investment opportunity. Generally, in any one year, I take no more than a sum equal to one half of my portfolio's five year average return. In this way principal builds over time. In addition, most buy/sell transactions settle from, or to, the Cash Area with some net asset exchanges between funds taking place. My rebalance threshold is + (or -) 2% of my neutral allocation for my Income Area, Growth & Income Area and Growth Area while I generally let the Cash Area float. However, at times, I can tactically position by setting a target allocation that is different from the neutral weighting to overweight (or underweight) an area without having to do a forced rebalance. I do an Instant Xray analysis of the portfolio quarterly and make asset weighting adjustments as I feel warranted based upon my assessment of the market(s), my goals, my risk tolerance, my cash needs, etc. I have the portfolio set up in Morningstar's portfolio manager by sleeve, by each area and the portfolio as a whole for easy monitoring plus I use brokerage account statements, Morningstar fund reports, fund fact sheets along with their annual reports to follow my investments. In addition, I use my market barometer and equity weighting matrix system as a guide to assist me in throttling my equity allocation through the use of equity ballast, or a spiff position, when desired. I also maintain a list of positions to add (A) to, to buy (B), to reduce (R), or to sell (S). Generally, funds are assigned to a sleeve based upon a best fit basis. Currently, my investment focus is to position new money into income generating assets. The last major rebalanced process was started during the 4th Quarter of 2018 and was completed in the 1st Quarter of 2019 with some sleeves being reconfigured along with the movement to a new asset allocation of 20% cash, 40% income and 40% equity.
    Portfolio Asset Allocation: Balanced Towards Income ... 20% Cash, 40% Income, 30% Gr & Inc and 10% Growth
    CASH AREA: (Weighting Range 15% to 25%, Neutral 20%, Target 15%, Actual 14%)
    Demand Cash Sleeve ... Cash Distribution Accrual & Future Investment Accrual
    Investment Cash Sleeve ... MMK Funds: AMAXX, GOFXX(B), PCOXX, CD Ladder(R) & Savings
    INCOME AREA: (Weighting Range 35% to 45%, Neutral 40%, Target 40%, Actual 39%)
    Income Sleeve: APIUX(A), BLADX(A), GIFAX, JGIAX(A), NEFZX, PGBAX, PONAX & TSIAX
    Hybrid Income Sleeve: AZNAX(A), BAICX, CTFAX(A), DIFAX, FBLAX, FISCX, FKINX, FRINX, ISFAX, JNBAX & PMAIX
    GROWTH & INCOME AREA: (Weighting Range 25% to 35%, Neutral 30%, Target 30%, Actual 32%)
    Domestic Equity Sleeve: ANCFX, FDSAX, INUTX(A) & SVAAX
    Domestic Hybrid Sleeve: ABALX, AMECX, HWIAX & LABFX
    Global Equity Sleeve: CWGIX, DEQAX, DWGAX(A) & EADIX
    Global Hybrid Sleeve: CAIBX, TEQIX & TIBAX
    GROWTH & OTHER ASSET AREA: (Weighting Range 5% to 15%, Neutral 10%, Target 15%, Actual 15%)
    Large/Mid Cap Sleeve: AGTHX, AMCPX & SPECX
    Small/Mid Cap Sleeve: AOFAX, NDVAX & PMDAX
    Global Growth Sleeve: ANWPX, NEWFX & SMCWX
    Other Investment Sleeve: KAUAX(A), LPEFX & PGUAX
    Equity Ballast & Spiff Sleeve: No position held at this time.
    Currently, I'm heavy in equity awaiting December mutual fund capital gain distributions that will preform an automatic rebalance of sorts by raising my cash allocation as I recieve all mutual fund distributions in cash. This should bubble me back towards a 20%/40%/40% asset allocation. Equities, indeed, had a nice run this year.
    Well ok then Skeet!
    Starchild Starchild in Fund Discussions
  • BUY - SELL - HOLD - November 2019
    Hi @Starchild,
    Thanks for your comment and question that you directed my way. Many of my American Fund holdings came to me via gift and inheritance with some of the funds dating back a couple of generations thus being in family hands all the way back to my great grandfather. As my great grandfather and grandfather sold off farm land they invested the sale proceeds and spread it out among family members with some of it being invested in American Funds. We also have a policy of not putting all of our eggs in a single basket.
    Starchild I'd like your thoughts on where I overlap. Please consider manager stradegy with your answer as the funds might occupy the same style boxes, etc. but the managers themselves differ using many different investment strategies. Notice I've got growth, value, momentum, contrarian, equity dividend, fixed income of many types, special opportunity, etc.
    I'm posting my sleeve management system along with portfolio positions so you have an understaning of what I actually do own for a better understanding of how I govern family money.
    Consolidated Master Portfolio & Sleeve Management System ... Last Revised on 11/15/2019
    Now being in retirement here is a brief description of my sleeve management system which I organized to better manage the investments held within mine and my wife's portfolios. The consolidated master portfolio is comprised of two taxable investment accounts, two self directed retirement accounts, a health savings account plus two bank savings accounts. With this, I came up with four investment areas. They are a Cash Area which consist of two sleeves ... an investment cash sleeve and a demand cash sleeve. The next area is the Income Area which consist of two sleeves ... an income sleeve and a hybrid income sleeve. Then there is the Growth & Income Area which has more risk associated with it than the Income Area and it consist of four sleeves ... a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. Then there is the Growth Area where the most risk in the portfolio is found and it consist of five sleeves ... a global growth sleeve, a large/mid cap sleeve, a small/mid cap sleeve, an other investment sleeve plus a special investment (spiff) sleeve. The size of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds held and their amounts. By using the sleeve management system I can get a better picture of my overall investment landscape. I have found it beneficial to Xray each fund, each sleeve, each investment area, and the portfolio as a whole quarterly for analysis. All my funds with the exception of those in my health savings account pay their distributions to the Cash Area of the portfolio. This automatically builds cash in the Cash Area to meet the portfolio's disbursement needs (when necessary) with the residual being left for new investment opportunity. Generally, in any one year, I take no more than a sum equal to one half of my portfolio's five year average return. In this way principal builds over time. In addition, most buy/sell transactions settle from, or to, the Cash Area with some net asset exchanges between funds taking place. My rebalance threshold is + (or -) 2% of my neutral allocation for my Income Area, Growth & Income Area and Growth Area while I generally let the Cash Area float. However, at times, I can tactically position by setting a target allocation that is different from the neutral weighting to overweight (or underweight) an area without having to do a forced rebalance. I do an Instant Xray analysis of the portfolio quarterly and make asset weighting adjustments as I feel warranted based upon my assessment of the market(s), my goals, my risk tolerance, my cash needs, etc. I have the portfolio set up in Morningstar's portfolio manager by sleeve, by each area and the portfolio as a whole for easy monitoring plus I use brokerage account statements, Morningstar fund reports, fund fact sheets along with their annual reports to follow my investments. In addition, I use my market barometer and equity weighting matrix system as a guide to assist me in throttling my equity allocation through the use of equity ballast, or a spiff position, when desired. I also maintain a list of positions to add (A) to, to buy (B), to reduce (R), or to sell (S). Generally, funds are assigned to a sleeve based upon a best fit basis. Currently, my investment focus is to position new money into income generating assets. The last major rebalanced process was started during the 4th Quarter of 2018 and was completed in the 1st Quarter of 2019 with some sleeves being reconfigured along with the movement to a new asset allocation of 20% cash, 40% income and 40% equity.
    Portfolio Asset Allocation: Balanced Towards Income ... 20% Cash, 40% Income, 30% Gr & Inc and 10% Growth
    CASH AREA: (Weighting Range 15% to 25%, Neutral 20%, Target 15%, Actual 14%)
    Demand Cash Sleeve ... Cash Distribution Accrual & Future Investment Accrual
    Investment Cash Sleeve ... MMK Funds: AMAXX, GOFXX(B), PCOXX, CD Ladder(R) & Savings
    INCOME AREA: (Weighting Range 35% to 45%, Neutral 40%, Target 40%, Actual 39%)
    Income Sleeve: APIUX(A), BLADX(A), GIFAX, JGIAX(A), NEFZX, PGBAX, PONAX & TSIAX
    Hybrid Income Sleeve: AZNAX(A), BAICX, CTFAX(A), DIFAX, FBLAX, FISCX, FKINX, FRINX, ISFAX, JNBAX & PMAIX
    GROWTH & INCOME AREA: (Weighting Range 25% to 35%, Neutral 30%, Target 30%, Actual 32%)
    Domestic Equity Sleeve: ANCFX, FDSAX, INUTX(A) & SVAAX
    Domestic Hybrid Sleeve: ABALX, AMECX, HWIAX & LABFX
    Global Equity Sleeve: CWGIX, DEQAX, DWGAX(A) & EADIX
    Global Hybrid Sleeve: CAIBX, TEQIX & TIBAX
    GROWTH & OTHER ASSET AREA: (Weighting Range 5% to 15%, Neutral 10%, Target 15%, Actual 15%)
    Large/Mid Cap Sleeve: AGTHX, AMCPX & SPECX
    Small/Mid Cap Sleeve: AOFAX, NDVAX & PMDAX
    Global Growth Sleeve: ANWPX, NEWFX & SMCWX
    Other Investment Sleeve: KAUAX(A), LPEFX & PGUAX
    Equity Ballast & Spiff Sleeve: No position held at this time.
    Currently, I'm heavy in equity awaiting December mutual fund capital gain distributions that will preform an automatic rebalance of sorts by raising my cash allocation as I recieve all mutual fund distributions in cash. This should bubble me back towards a 20%/40%/40% asset allocation. Equities, indeed, had a nice run this year.
    Old_Skeet in Fund Discussions
  • BUY - SELL - HOLD - November 2019
    I am building positions in VWIAX-Wellesly, VMNVX-VangGlobLowVol & BAFWX-BrownAdvSusGrowth. I am 15 months away from retirement at the age of 65, slowly selling high SD funds.
    kings53man in Fund Discussions
  • Retirement strategies for Widow (or Widower)
    For those of us that have a spouse that DOES NOT want to OR cannot participate in portfolio development, modification, monitoring, withdrawal strategies and etc.
    How do you set up a Portfolio/Retirement/Withdrawal (KISS) strategy that will sustain your spouse throughout the rest of their life AND does NOT require your Widow/Widower to get involved. In other words, an "auto pilot" portfolio and withdrawal strategy?
    Is this possible for the DIY investor? OR
    Do you need to turnover your portfolio to a Full-service wealth management firm? OR
    Another type of wealth management firm OR
    A Financial Adviser (fee only?) OR
    Someone else?
    Thank you for any and all thoughts, suggestions and guidance!!!
    Matt
    mcmarasco in Fund Discussions
  • Social Security ‘Bridge’
    Here's the whole paper:
    https://crr.bc.edu/working-papers/how-best-to-annuitize-defined-contribution-assets/
    About a third is in (relatively) plain English. It discusses why people might want to use annuities and why they might not (both rational and irrational reasons). This includes the newer advanced life deferred annuities ("longevity insurance"). A good summary of the pros and cons.
    The paper compares four options: the baseline (drawing SS at age 65); (1) buying an immediate annuity at age 65 (with 20% or 40% of retirement assets); (2) spending an amount equal to SS's PIA (full retirement benefit) out of 20% or 40% of retirement assets until age 70 or assets depleted, then taking SS; and (3) buying longevity insurance with 20% of retirement assets.
    Generally, non-annuitized assets are drawn down according to RMDs. But if one buys longevity insurance, this doesn't make sense, because at age 85 another income stream kicks in. So the researchers looked at two cases: (a) drawing down according to RMD (i.e. underspending), and (b) spending everything between ages 65 and 85.
    A discussion of the results starts on p. 26 (pdf p. 27). Table 3 summarizes the results. The lower the number, the less you have to spend to get the same result as the baseline. The two cases that came out best were: using 40% of assets to fund income until age 70 and then drawing SS; and buying longevity insurance (spending down everything by age 85).
    A concern with the latter is that you don't have reserves for an emergency around age 85. The next three tables in the results section show how good the strategies are if one assumes random "shocks" (needs for sums of cass). The wealthier you are, the more you can survive shocks even after spending money on annuities (because you're getting higher income from the annuities).
    Perhaps it would only have made a marginal difference, but they might have also considered buying a temporary life annuity to serve as the bridge to SS. That's an annuity that would pay out an income stream from, say, age 65 to age 70 or until death, whichever came first. Since you're betting that you'll live to collect SS at age 70, a temporary life annuity just increases the bet a little. And because you forfeit some money if you don't make it to 70, that temporary annuity costs less than "self-funding" the bridge.
    msf in Fund Discussions