Stable-Value (SV) Rates, 6/1/24

TIAA Traditional Annuity (Accumulation) Rates
No changes.
Restricted RC 5.75%, RA 5.50%
Flexible RCP 5.00%, SRA 4.75%, Newer IRAs 5.00%
(TIAA Declaration Year 3/1 - 2/28)
TSP G Fund hasn't updated yet (previous 4.75%).
Edit/Add 6/3/24. June rate is 4.635%.
Options outside of workplace retirement plans include m-mkt funds, bank m-mkt accounts (FDIC insured), T-Bills, short-term brokered CDs.
#StableValue #401k #403b #TIAA #TSP
https://ybbpersonalfinance.proboards.com/post/1495/thread

https://www.sec.gov/Archives/edgar/data/1295908/000158064224002881/lebenthal_497.htm
497 1 lebenthal_497.htm 497
LEBENTHAL ULTRA SHORT TAX-FREE INCOME FUND
A Series of Centaur Mutual Funds Trust
Supplement dated May 29, 2024, to the Summary Prospectus, Statutory Prospectus and
Statement of Additional Information, each dated February 28, 2024
Effective immediately, the Lebenthal Ultra Short Tax-Free Income Fund (the “Fund”), a series of Centaur Mutual Funds Trust (the “Trust”), has terminated the public offering of its shares and will discontinue its operations effective July 10, 2024. Shares of the Fund are no longer available for purchase and, at the close of business on July 10, 2024, all outstanding shares of the Fund will be redeemed at net asset value (the “Transaction”).
The Board of Trustees of the Trust (the “Board”), at the recommendation of the Fund’s investment advisor, DCM Advisors, LLC (the “Adviser”), determined and approved by Written Consent of the Board on May 29, 2024 (the “Written Consent”), to discontinue the Fund’s operations based on, among other factors, the Advisor’s belief that it would be in the best interests of the Fund and its shareholders to discontinue the Fund’s operations. Through the date of the Transaction, the Advisor will continue to waive investment advisory fees and reimburse expenses of the Fund, if necessary, in order to maintain the Fund at its current expense limit, as specified in the Fund’s Prospectus.
Through the Written Consent, the Board directed that: (i) all of the Fund’s portfolio securities be liquidated in an orderly manner not later than July 10, 2024; and (ii) all outstanding shareholder accounts on July 10, 2024, be closed and the proceeds of each account be sent to the shareholder’s address of record or to such other address as directed by the shareholder, including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing accounts. As a result of the Transaction, the Fund’s portfolio holdings will be reduced to cash or cash equivalent securities. Accordingly, going forward, shareholders should not expect the Fund to achieve its stated investment objectives. Any capital gains will be distributed as soon as practicable to shareholders and reinvested in additional Fund shares, unless you have requested payment in cash.
Shareholders may continue to freely redeem their shares on each business day prior to the Transaction. Procedures for redeeming your account, including reinvested distributions, are contained in the section “Redeeming Your Shares” in the Fund’s Prospectus. Any shareholders that have not redeemed their shares of the Fund prior to July 10, 2024, will have their shares automatically redeemed as of that date, with proceeds being sent to the address of record. If your Fund shares were purchased through a broker-dealer or other financial intermediary and are held in a brokerage or other investment account, redemption proceeds may be forwarded by the Fund directly to the broker-dealer or other financial intermediary for deposit into your brokerage or other investment account.
The Transaction will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
Shareholders invested through an IRA or other tax-deferred account should consult the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders generally have 60 days from the date that proceeds are received to re-invest or “rollover” the proceeds in another IRA or qualified retirement account; otherwise the proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
If you have any questions regarding the Fund, please call 1-888-484-5766.
Investors Should Retain this Supplement for Future Reference

https://www.sec.gov/Archives/edgar/data/225930/000174177324002468/c497.htm
497 1 c497.htm
6316 P2 05/24
TEMPLETON FUNDS
SUPPLEMENT DATED MAY 29, 2024
TO THE SUMMARY PROSPECTUS, PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION (“SAI”)
EACH DATED JANUARY 1, 2024, OF
TEMPLETON INTERNATIONAL CLIMATE CHANGE FUND (THE “FUND”)
On May 22, 2024, the Board of Trustees of Templeton Funds, on behalf of Templeton International Climate Change Fund (the “Fund”), approved a proposal to liquidate and dissolve the Fund. The liquidation is anticipated to occur on or about August 9, 2024 (Liquidation Date); however, the liquidation may occur sooner if at any time before the Liquidation Date there are no shares outstanding in the Fund. The liquidation may also be delayed if unforeseen circumstances arise.
At the close of market on July 2, 2024, the Fund will be closed to new investors, except as noted below. Existing investors who had an open and funded account on July 2, 2024 can continue to invest in the Fund through exchanges and additional purchases after such date. The following categories of investors may continue to open new accounts in the Fund after the close of market on July 2, 2024: (1) clients of discretionary investment allocation programs where such programs had investments in the Fund prior to the close of market on July 2, 2024, and (2) Employer Sponsored Retirement Plans or benefit plans and their participants where the Fund was available to participants prior to the close of market on July 2, 2024. The Fund will not accept any additional purchases after the close of market on or about August 7, 2024. The Fund reserves the right to change this policy at any time.
Shareholders of the Fund on the Liquidation Date will have their accounts liquidated and the proceeds will be delivered to them. For those shareholders with taxable accounts and for Federal, state and local income tax purposes: (a) any liquidation proceeds paid to such shareholder should generally be treated as received by such shareholder in exchange for the shareholder’s shares and the shareholder will therefore generally recognize a taxable gain or loss; (b) in connection with the liquidation, the Fund may declare taxable distributions of its income and/or capital gain; and (c) an exchange out of the Fund prior to the Liquidation Date may be considered a taxable transaction and such shareholders may recognize a gain or loss. Shareholders should consult
their tax advisers regarding the effect of the Fund’s liquidation in light of their individual circumstances. Participants in an Employer Sponsored Retirement Plan that is a Fund shareholder should consult with their plan sponsor for further information regarding the impact of the liquidation. In considering new purchases or exchanges, shareholders may want to consult with their financial advisors to consider their investment options.
Please retain this supplement for future reference.

Another option to consider is an annuity. We are considering investing my wife’s IRA in an annuity to simplify matters. It accounts for about 15% of our total retirement accounts, so we wouldn’t be locking up everything. An annuity would satisfy the RMDs for that account and would provide guaranteed payments for the rest of our lives, with no concerns about market conditions. The payout rate is pretty high right now due to rising interest rates.

From Barron's May 6, 2024,
Frequent changes in the RMD rules are confusing. For tax-deferred accounts (T-IRA, 401k, 403b), the RMD age is 73 now (was 72 in 2023, 70.5 in 2020) and it will remain so until 2033. The RMD amount depends on the yearend balances, age-related IRS factor, and other factors such as marital status, very young spouse, beneficiaries. The 1st RMD can be delayed to April 1 of the following year but beware of the tax impact of double RMDs then. The RMD can be postponed if working. (There is a special 55.0-59.5 rule that avoids 10% penalty for premature withdrawals from a current 401k/403b; not so for old 401k/403b or T-IRA). The RMDs from T-IRAs can be aggregated and taken from any one T-IRA, and it’s similar for 403b, but not for 401k. There are different rules for inherited accounts for spouses, nonspouses, trusts, and whether the deceased had started taking the RMDs. The QCDs are allowed from T-IRAs. The Roth IRAs no longer require RMDs. (R-IRA rules are simple in retirement if 5 years beyond Roth Conversions, but nightmarish otherwise.)

This is a good article by Dave Nadig.
His first point regarding embracing transparency really hits home.
I invest in several Vanguard mutual funds (and one ETF) and am considered a Vanguard "owner."
How can an investor be a true owner when Vanguard doesn't disclose
executive's compensation packages, profits, or cash reserves?
If Vanguard could develop an effective form of "pooled longevity insurance" (point #3),
it could be very beneficial for the firm and the country as a whole.
I need to educate myself about retirement tontines...
Mr. Nadig fails to mention Vanguard's long-standing technology and customer service woes.
Ameliorating issues related to this should be prioritized IMHO.

@bee, I don’t think a new outside CEO will ‘right’ the ship at this point. @msf summarizes the message appropriately and Vanguard wants to exit many of the less profitable business. Ironically, Vanguard was our initial 401(k) administrator and they were very good. Web support has always been barebones and clunky but we managed.
Having to upgrade their human customer services take lots of $ that Vanguard don’t want to do. We learn to use this web service well even though we have been Flagship clients for many years. Right now, we have moved all retirement accounts out from them. Next is our joint account.

https://www.sec.gov/Archives/edgar/data/1141819/000089418924003393/terrafirmasticker.htm
497 1 terrafirmasticker.htm TERRA FIRMA 497E
Filed pursuant to Rule 497(e)
Registration Nos. 333-62298; 811-10401
Terra Firma US Concentrated Realty Equity Fund
A series of Trust for Professional Managers
Supplement dated May 24, 2024
to the
Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”)
dated April 29, 2024
The Board of Trustees (the “Board”) of the Trust, based upon the recommendation of Terra Firma Asset Management, LLC (the “Adviser”), the investment adviser to the Terra Firma US Concentrated Realty Equity Fund (the “Fund”), determined to close and liquidate the Fund. The Board concluded that it would be in the best interests of the Fund and its shareholders that the Fund be closed to new purchases, except for purchases made through an automatic investment program or the reinvestment of any distributions, as of the close of business on May 28, 2024 (the “Closing Date”) and liquidated as a series of the Trust effective as of the close of business on June 28, 2024 (the “Liquidation Date”).
The Board approved a Plan of Liquidation (the “Plan”) that determines the manner in which the Fund will be liquidated. Pursuant to the Plan and in anticipation of the Fund’s liquidation, the Fund will be closed to new purchases, except for purchases made through an automatic investment program or a purchase exception that is approved by Trust officers, effective as of the close of business on the Closing Date, after which the Fund’s assets may be entirely invested in money market instruments or held in cash. Accordingly, the Fund will no longer pursue its investment objective and principal investment strategy. However, any distributions declared to shareholders of the Fund after the Closing Date and until the close of trading on the New York Stock Exchange on the Liquidation Date will be automatically reinvested in additional shares of the Fund unless a shareholder specifically requests that such distributions be paid in cash. Although the Fund will be closed to new purchases as of the Closing Date, you may continue to redeem your shares of the Fund until the Liquidation Date, as described in “How to Redeem Shares” in the Fund’s Prospectus.
Pursuant to the Plan, if the Fund has not received your redemption request or other instruction prior to the close of business on the Liquidation Date, your shares will be redeemed and you will receive proceeds representing your proportionate interest in the net assets of the Fund as of the Liquidation Date, subject to any required withholdings. As is the case with any redemption of Fund shares, the liquidation proceeds will generally be subject to federal and, as applicable, state and local income taxes if the redeemed shares are held in a taxable account and the liquidation proceeds exceed your adjusted basis in the shares redeemed.
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. If you hold your shares in an IRA account, you have 60 days from the date you receive your proceeds to reinvest or “rollover” your proceeds into another IRA and maintain their tax-deferred status. If your IRA account is held directly with the Fund, you must notify the Fund’s transfer agent by telephone at 844-40TERRA (1-844-408-3772) prior to June 28, 2024, of your intent to rollover your IRA account to avoid withholding deductions from your proceeds. If the Fund does not receive a response prior to June 28, 2024, your investment in the Fund will be liquidated as an age-based distribution with 10% federal withholding on June 28, 2024. Please also note that state withholding may also apply. You should consult with your tax advisor on the consequences of the redemption to you.
The Adviser will bear all of the expenses incurred in carrying out the Plan.
Shareholder inquiries should be directed to the Fund at 844-40TERRA (1-844-408-3772).
Please retain this Supplement with your Summary Prospectus,
Prospectus, and SAI for reference.

The following proves that PVCMX is not an absolute return fund, see (https://www.investopedia.com/terms/a/absolutereturn.asp)
Quote "an absolute return fund seeks to make positive returns by employing investment management techniques that differ from traditional mutual funds. Absolute return investment strategies include using short selling, futures, options, derivatives, arbitrage, leverage, and unconventional assets. Absolute returns are examined separately from any other performance measure, so only gains or losses on the investment are considered."
The manager uses his unique strategy which depends mainly on owning cash equivalent positions when he can't find stocks that meet his criteria. I call it timing the markets.
JD, since retirement in 2018, I hardly owned stock funds. I'm mainly a bond OEFs trader. In extreme market risk, I'm at 99+% in MM.

@hondo
Wife 401k was at Fido and most of non retirement money at Schwab and Vanguard
I dislike using one brokerage for redundancy purposes
Schwab customer service has always been better than Fido although there is the irritating issue of no sweep account.
As Vanguard has deteriorated over the years I gradually moved our accounts out. Mine to Schwab and most of wife's to Fido.
If Schwab had a sweep account MMF I might dump Fido altogether but probably not. I think two different brokerages is worth the inconvenience

If one were "back testing a portfolio to forward implement" a retirement Withdrawal Strategy using PV as @yogibullbear has outlined above, what funds would you choose?
We can't count on the same results going forward but the hope is past performance at least rhymes with future performance and we adjust as we go.
Criteria:
ER under 1%
3 Fund Portfolio
4% WD Yearly
Minimum 7% total return on a 3,5,10 and 15 yr basis
No COLA - I prefer the portfolio's yearly balance and 4% WD be the determinant of the dollar amount of the WD
Here are some funds for consideration and comment:
90% + Equity Portfolio (VFINX, FBGRX, PRMTX, FSMEX, PRNHX)
Other Choices:
- I often see these choices as being index funds that capture the market as well as sector funds that attempt to capture the outsized gains of a sector.
aggressive-allocation
70/30 or 80/20 Allocation Funds (PRWCX, TSAIX, looking for more choices )
Other Choices:
- Manager risk can be a larger dynamic with these investments. When these funds get it right they often captures more of the upside while reducing some of the downside risk.
moderately-aggressive-allocation
60/40 or 50/50 Balanced Funds (FBALX, VBINX, VWELX, FPURX, VGSTX, GAOZX, DODBX, RBAIX, RGPAX, VGWAX)
Other Balanced Funds:
- Not all balance fund are created the same. This article separate balance funds into three categories - US-centric, Global, and Diversified
balanced-funds
Other considerations:
Low Draw Down / Low Volatility Funds
- Funds that focus on Bonds, Utilities, Preferred stock might fit in this category.
12-battle-tested-low-volatility-funds
and with ETFs:
7-yield-solution-4-etf-portfolio
(JEPI, NUSI, HNDL, HIPS)
These funds should consistently produce a minimum 7% total return that I'll call The 7% Solution - where a retiree "spends down" (WD 4% yearly) while allowing the remaining 3% to grows the portfolio for future inflation adjusted 4% WDs.

There's no cost basis accounting in tax-sheltered vehicles.

You might find the following relevant:
I have a long standing mutual fund holding in my IRA but in March I had some idle cash in the account and I added to that mutual fund, which is subject to a 2% redemption fees if sold within 90 days of purchase.
The fund prospectus says, "In determining whether a redemption fee is applicable to a particular redemption, it is assumed that the redemption is first of shares acquired pursuant to the reinvestment of dividends and capital gains distributions, and next of other shares held by the shareholder for the longest period of time."
I tried to sell shares I bought a few years ago.
Schwab Rep and supervisor are adamant that cost basis method in IRA controls for purpose of applying the 2% redemption fees. They say the March purchase taints the sale because average cost basis is used in that account and thus they have to apply the 2% redemption fees. (The strange part is, their reps are not trained and their system are not designed for their own literature, which correctly says, "Assets using the Average Cost Method will default to the FIFO Lot Selection Method when disposed." We already know the brokerages thoroughly confuse the distinction between cost method and lot selection. If they actually applied the FIFO lot selection as their literature says, there is no redemption fees in my case.)
The above issue is also there at Fidelity. We discussed this in the Fidelity Community in the past year - I go there very rarely these days but anyone active there probably can pull up that discussion. My memory is not good re Fidelity's exact process but they might even just apply average cost basis method (means test the last purchased shares to see if there is a taint) in applying the fund level redemption fees, not withstanding what the customer's selection is. Posters should pay attention to what Fidelity does or read that discussion in Fidelity Community where Fidelity employees participated.
It is interesting how these brokerages' own short term redemption fees ($50) is applied on a FIFO basis but these brokerages use some other method for purposes of applying the fund's redemption fees, irrespective of what the prospectus says. I guess it is easy for them to have a simpler punitive system, rather than customize for each fund. Most customers do not select a cost (or lot) method in retirement accounts and so they are defaulted to a average method. Something to be aware of.
While it is likely differences among funds exist, I have only seen funds apply FIFO.

Playing around with the new version of PV and the Backtesting Asset Allocation Portfolio tool:
1. I first select "Custom Portfolio" and eliminate the four funds that are preloaded as the "Sample Portfolio".
2. I enter a single ticker for Asset 1 (I used PRWCX) for my purposes. Change this as you please.
3. I keep SPY as the Specified Benchmark ticker. Change this as you please.
4. I run "Analyze Portfolio".
5. I then select the "Link" option and copy this link to a location such as an email to myself or as a hyperlink in a spreadsheet file.
6. I now have my own personal link to PV backtesting and my personal "Sample Portfolio".
Here's my Link to my personal "Sample Portfolio" that I could further customize.
7. Eliminate or keep the Asset 1 as Portfolio 1, enter assets for Portfolios 2 & 3 as you have in the past.
My PV Sample Portfolio
note:
Changing setting to stress test your Portfolios
To Stress test Custom Portfolios, select individual 10 year periods. I have used 2002 - 2011 as one stressful investment period. To choose your 10 year period, click on the setting tab adjusting the start and end dates.
To stress test your portfolio further (say by taking annual withdrawals), I set my withdrawal amount by selecting the "Cashflow" options . I use 4% withdrawals as my annual withdrawal.
With only a 10 year look back period I segment my look backs into distinct time periods.
One of most stressful decades (10 years) to have started retirement would have been the start of the Tech bubble followed by the GFC say, 2002 - 2011.
I compare these withdrawal results to other 10 year time frames, including the last 10 years (2015- 2024).

There's no cost basis accounting in tax-sheltered vehicles.

The field is to whether to currently take into account Amortization / Accretion and also whether to pick constant yield method or straight line method, which drive adjusted purchase price, which likely has no relevance for retirement accounts. “On” and “Off” have the connotation of an election at Schwab. Why even have the field in retirement accounts. Same for the lot methods for stocks and mutual funds.
Interestingly, I use the lot methods in IRAs to track my trading behavior.

My bureaucratic retirement plan custodian issued the cheque made payable to Schwab FBO my name, instead of cheque made payable to Schwab FBO my name rollover IRA, notwithstanding my written instructions in their portal to issue the check in the name of my rollover IRA. Does it make a diferrence? I thought I would just wait until they issue a Form 1099-R to see what box they check, rather than ask them to reissue the check correctly, which they may not do after all the hassle.
(I deposited the check into the rollover IRA.)

Schwab PCRA is a brokerage window within the retirement plans and may have some plan level limitations.

Was able to initiate new BIVRX position via Schwab's PCRA retirement plan portal. Don't know how or why, but it gives access to (soft?) closed funds.

I've just tried testing this by setting up a Schwab PCRA trade and got a message: "Buys for existing position only." Any chance you can share the details re how / when you were able to do it?

This PCRA is attached to a state retirement plan ("Employer Sponsored"), so perhaps it has institutional access? It let me snag a new position in TRAIX as well.

Was able to initiate new BIVRX position via Schwab's PCRA retirement plan portal. Don't know how or why, but it gives access to (soft?) closed funds.

I've just tried testing this by setting up a Schwab PCRA trade and got a message: "Buys for existing position only." Any chance you can share the details re how / when you were able to do it?

Was able to initiate new BIVRX position via Schwab's PCRA retirement plan portal. Don't know how or why, but it gives access to (soft?) closed funds.

Jeff DeMaso discusses Vanguard's new CEO among other topics.
https://www.independentvanguardadviser.com/a-new-leader-comes-to-vanguard/

Thanks for the link. Always appreciated.
He writes:

it certainly feels like Vanguard's culture has been changing already. Vanguard adding fees and selling off non-core businesses—like its small-biz retirement accounts—lends a sense that the bottom line has taken priority from the shareholder (owner) experience

Though the antecedent (Vanguard returning to its core business) was apparent, I had drawn the opposite conclusion.
Some companies manage to expand their lines of business successfully. Many do not and decide to focus on strengthening their core competencies. For Vanguard, that has always been inexpensive, conservatively managed funds.
Between 2002 and 2019 Vanguard offered a cash management account, Vanguard Advantage. It was offered only to Voyager Select ($500K+) and Flagship ($1M+) customers; the former had to pay $30/year and $4.95/mo if you used BillPay.
https://www.investmentnews.com/industry-news/news/vanguard-to-end-its-small-cash-management-service-78435
https://www.mymoneyblog.com/vanguardadvantage-all-in-one-checking-account-at-vanguard.html
This was not Vanguard's core business, and it wasn't going to put money into it unless it saw it getting traction with it well-heeled customers. Today it offers a barebones cash management account that offers nothing but ACH transfers (and a bank sweep) - minimal services that are cheap to provide. Even here, it started with a controlled rollout.
It launched three managed payout funds in 2008 (talk about bad timing), merged them into a single fund in 2014, eliminated the managed payout feature in 2020 (renaming the fund Managed Allocation Fund), and ultimately merged the fund away altogether in 2023.
https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/Press-Release-Vanguard-Announces-Changes-To-Managed-Payout-Fund-02282020.html
It offered a variable annuity (through an outside insurer) with underlying Vanguard funds. Again not a core product, it got out of the business of administering the VA in 2019.
https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/Press-Release-Vanguard-Transitions-Variable-Annuity-Offering-061919.html
In that press release, Vanguard even comments that it will be "Focusing on core offerings". This is nothing new; it didn't start in 2024 with Vanguard shedding its small business retirement accounts.
Bogle built a solid money management firm. Once he left, Vanguard dabbled in expanding financial products. For the most part, it hasn't done this well. While still dabbling it has often retreated to its core business. Sticking to one's knitting does not mean that one is placing the bottom line ahead of shareholder interests.
This is not to say that Vanguard shouldn't be spending more to support its huge number of investors. It can, and IMHO should, nudge people toward electronic trading and communication. But it also needs to improve its human communications as well. This is not a matter of shedding lines of business. This is a matter of providing decent service for its core businesses.