VintageFreak said:
Only one Mutual Fund in the list.
Can someone please tell me why one should by NAESX over VSCPX? I was looking to start an investment in VSCPX in 2020.
Unless I'm doing this wrong, VSCPX outperforms NAESX.
= = = = = =
NAESX ,the investor class with the expense ratio of 0.17, is closed because Vanguard has VSMAX ,the admiral class, now available with an ER of 0.05 for the same $3,000.
So VSCPX with ER 0.03, VSCIX with ER 0.04, or a bargain VSMAX with ER 0.05 are the open choices if you are interested in the Vanguard index mutual fund in that space.
VSCPX $100 million ER .03, VSCIX $5 million ER .04, VSMAX $3,000 ER .05

Only one Mutual Fund in the list.
Can someone please tell me why one should by NAESX over VSCPX? I was looking to start an investment in VSCPX in 2020.
Unless I'm doing this wrong, VSCPX outperforms NAESX.

VSCPX is institutional with a minimum of $100 million. Can you get it via a workplace plan? NAESX is investor class with a minimum of $3000 but it is closed. The difference in expense ratios (0.03 versus 0.17) might account for the fraction of a percent difference in returns.
As far as active funds go, I would recommend BCSIX and PXSGX as long term holds, but they are also closed. The best of the rest (or one of them) is PRDSX. It sounds like you are looking for an index fund though, which is an eminently sensible approach to the small-cap space.

Only one Mutual Fund in the list.
Can someone please tell me why one should by NAESX over VSCPX? I was looking to start an investment in VSCPX in 2020.
Unless I'm doing this wrong, VSCPX outperforms NAESX.

Looks like some initial investments in startups.
https://crunchbase.com/organization/durable-capital-partners#section-investments
U of Michigan is onboard
https://regents.umich.edu/files/meetings/10-19/2019-10-IX-2.pdf

(If already posted I’ll be glad to delete.)
“On Friday, Invesco (ticker: IVZ) announced that it will close 42 ETFs. They run the gamut from emerging market debt funds to U.S. large-cap factor funds to currency funds. The website ETF.com reported that the total assets in those funds exceeds $1 billion and that eight of the 42 funds have more than $50 million in assets, which ETF.com noted, is the point at which an ETF is considered “safe from closure.”
Barrons Article - From these Bing search results should be at / near top.
https://www.bing.com/search?q=invesco+closing+16%+of+its+funds&qs=n&form=QBLH&sp=-1&pq=invesco+closing+16%+of+its+funds&sc=1-32&sk=&cvid=BE3CBD0D7691488F93B9C14CD36C67A7

@msf I am actually still trying accumulate SS credit (part time) so maybe there will be a small SS benefit when I turn 70. On my to do list for 2020...sit down with SS and crunch some numbers regarding my potential SS benefit and this WEP provision.
For others are not familiar with SS and WEP:
https://ssa.gov/policy/docs/program-explainers/windfall-elimination-provision.html
@msf Fidelity's HSA option looks like a good one...on my to do list for 2020.
@Sven @msf mentioned TRP is available NTF on Fidelity's Brokerage platform...good to know.
@MikM regarding FRIFX MAXXDD of -40%...you have a very valid point...though this is a small position in my portfolio I did consider this a non-correlated US market asset (.72) it does pay a dividend that appears to remain constant even as share price fluctuates.
@hank said,

I could be wrong. But my sense is I’m somewhat protected against severe equity selloffs by the diversification I maintain. It’s probably the #1 reason I pay intense attention to different market sectors almost daily and track several funds that represent various sectors. And, if equities drop sharply, I’ll essentially “rebalance on the run” by shifting withdrawals to the fixed income holdings. To some extent this has been an ongoing process over the years. I always pull distributions from the portions that have fared the best.

...seems like a valid approach to me

Look at the post directly above yours called 2019 Capital Gains Distributions. December is distribution season. It didn't really drop 7%. You will receive a dividend or gains payout for much or all of that amount.

... "who or what" does the term "investor" refer to in the linked article ...

*@Catch22 - I don’t know if this answers your question or not - but my read was that M* bases that conclusion on their tracking of U.S. mutual fund flows during 2019. They see a lot of $$ flowing into money market funds. I’d presume that’s largely individual / personnel investing as opposed to institutional. You raise a good point, however. Most major fund groups offer “institutional” class money market funds as well which conceivably may have distorted their conclusions.
A couple other points: Equities have soared in value, so there’s a lot of rebalancing going on. And that alone causes inflows into money market funds. The other point is that for wealthy or better off investors, the gains may be coming from individual equity holdings, while the profits from those individual holdings may still make their way into money market funds.
Don’t know what % of investors invest through hedge funds (likely a small %) - but there’s a very large pool of $$ sitting in those. The workings of hedge funds aren’t nearly as transparent as for mutual funds. I did check to determine whether ETFs were considered in M*s analysis of fund flows. It appears they do include ETFs in that total.
PS - Agree with @Mark that John’s almost daily postings predicting a market crash are probably scaring investors. :)

@Gary, Please see the IRS link provided above. Roth IRA contribution limit for 2019 is $6,000. For those who are over 50, an additional $1,000 is allowed as catch-up.
For 2020, Roth IRA contribution limit remained unchange.
If in doubt, the best is check with the original source - IRS.

https://www.archyworldys.com/10-correction-could-be-coming-wells-fargo-warns/
couple of interesting reads/
10% corrections could be coming
2020 outlook
By the end of the year and the decade, Wall Street's strategists are delivering on their expectations of where the stock market will close 2020.

“ I am presently at 5 institutions which I will reduce to 4 by Spring 2020 and 3 by summer 2020 “
Great stuff @bee. I’m a dozen years beyond you in age and facing the same challenges. I went from 5 institutions to 4 a year ago - vacating Oakmark. Tough getting it down further anytime soon. I view both Permanent Portfolio Funds and Invesco as “one-trick ponies” at this point. The first for PRPFX and the second for its gold fund. The bulk, however, is at D&C and TRP - both of which I regard highly.
bee - You incentivized me to count mine: I have 14 funds (which includes 2 ultra-shorts). I find that number quite manageable. (If I counted correctly, you listed 16, including VHT.)
My allocation :
Balanced: 25% (3 funds)
Alternative: 25% (3 funds)
Diversified Income: 25% (2 funds)
Cash (Ultra-short / Short-term): 15% (3 funds)
Real Assets: 10% (3 funds)
PS - As noted recently, thinking about this allocation is a good way to fall asleep. :)

As part of my end of the year portfolio review I try to simplify my holdings without compromising performance. I am 60 years old and have a pension, but no Social Security (SS's WEP provision eliminated SS for me). I see the next 20 years as a time to spend a little bit of what I have saved knowing full well that, if I am lucky enough to live into my eighties, spending priorities will begin to shift away from "foot loose and fancy free" to "foot wear that's loose and free".
Simplification comes in two forms. One, I am attempting to simplify what I hold (the number of funds) and two, where I hold these funds (the number of institutions where I hold the funds). I manage all of my investments independent of advisors. I do attempt to seek out mutual funds that are managed. So, in a sense, I do pay for investment management advice as a function of the Expense Ratio (ER) of the funds i own that have fund managers or management teams.
Over the next 20 years my withdrawal from these investments need to fund:
- Yearly Income gaps - the yearly shortfall when I subtract my projected yearly expenses from my retirement income.
- One time Expenses - For gift costs (weddings, tuition, holidays), travel costs, medical procedures costs (not covered by insurances), large one time item costs (a car, boat, real estate)
- Roth Conversions up to the 12% tax bracket limit (25% of my retirement accounts are in deferred taxable IRA, 75% in Roth/HSA).
- Help fund retirement needs beyond 80 such as income gaps as a result of inflation, out of pocket health care costs, funeral expenses, providing for surviving spouse, and gifting to beneficiaries (Spouse, Kids, Charities)...oh yeah, and loose fitting shoes.
Here are my present holding by percentages of total:
71% Moderate to Aggressive positions (for long term growth and periodic withdrawals)
PRWCX - 22% (half Roth, half SD IRA)
PRGSX - 10.5% (Roth)
PRMTX - 7.5% (Roth)
PRHSX - 4% (SD IRA)
VMVFX - 6% (Roth)
VHCOX / POAGX-11% (Roth)
VHT - 2% (Roth)
FSMEX - 4% (Roth)
FSRPX - 4% (Roth)
6% Balance position (to cover Long term HC costs)
BRUFX - (HSA)
23% Conservative positions (to cover sequence of return withdrawals, to provide cash for buying opportunities, lower portfolio volatility)
FRIFX, VWINX, PTIAX, VFISX, PRWBX, SPRXX - (mostly Roth)
I am presently at 5 institutions which I will reduce to 4 by Spring 2020 and 3 by summer 2020
Recently, I back tested a portfolio consisting of PRWCX (34%), PRMTX (33%) and PRHSX (33%) which I consider moderately aggressive.
Its past 20 year performance had a MAXXDD recovery period of 3 years. I consider this a reasonable time frame to cover a sequence of return risk withdrawal.
Having at least 3 years of retirement income money earmarked for these future time frames (market pull backs and recoveries) seems reasonable to me. A combination of FRIFX / VWINX / PTIAX / ST Bonds are my choices for this part of my portfolio.
Any thoughts or suggestions would be appreciated.

Recently accepted a job with a new employer who offers a matching 401k plan. Employer has around 15 to 20 eligible employees. It's been 22 years since I've had access to a 401k plan. Below are the offerings. I've included the corresponding class A shares for each fund which are not available to plan participants. The disparity in expense ratios is staggering in most cases. I'm not going to turn down free money, but I'll only contribute enough to maximize the company match. The plan's adviser from Raymond James stated that changes are being discussed. Sounds like Target Date Funds are among the discussion and hopefully some Index funds, but I fear what the ER for those funds would end up looking like given this lineup. The plan is through Cuna Mutual, whoever they are. I gathered the ER from M*.
Bonds
AMF High-Inc R2 RITBX 1.45 AHITX .73
AMF Bond Fund of Amer R2 RBFBX 1.36 ABNDX .60
AMF Interm Bd Fd of Amer R2 RBOBX 1.35 AIBAX .64
Large Cap Stocks
AMF Washington Mutual R2 RWMBX 1.37 AWSHX .59
Calamos Growth C CVGCX 2.04 CVGRX 1.29
Victory Diversified Stock R GRINX 1.34 SRVEX 1.05
International Stocks
AMF Capital World Gr & Inc R2 RWIBX 1.55 CWGIX .76
AMF Europacific Growth R2 RERBX 1.59 AEPGX .83
AMF Smallcap World R2 RSLBX 1.78 SMCWX 1.08
Asset Allocation
AMF Balanced R2 RBABX 1.48 ABALX .57
AMF Capital Income Bldr R2 RIRBX 1.39 CAIBX .58
Calamos Growth & Income C CVTCX 1.85 CVTRX 1.10
Money Market
AMF US Government MMkt R2 RABXX 1.41 AFAXX .38

From the linked web site:
"MoneyCheck is a fast-growing online publication launched in 2018 with the aim of covering personal finance and investment news.

Our goal is to simplify and explain in clear language, what can be a confusing jumble of terms and concepts. We hope to provide clear, unbiased facts so people can make up their own mind about important financial decisions."
Being curious and using same to gather knowledge about investments; I'll periodically "bite" at a title that pronounces "Complete Guide". One never knows about a new and undiscovered individual who may actually be qualified in a subject area; and with the rare gift of presenting subject information in a clear and defined manner. When such articles are discovered here and elsewhere, at a minimum, I pass these along to friends and family to help provide for continuing financial educational purposes.
BUT, I'm not quite sure what is going on with this "financial" write. Complete isn't a qualifying word with this. Periodically, one discovers some common terms for a U.S. marketplace, such as; CD's, 401k/403b, etf tickers, etc. As Mr. Oliver is an online media company owner, it is not clear whether he or a contributor wrote this article; nor to what are his or others qualifications to discuss some of the information provided. Or whether any number of the publications are for the sake of only generating revenue from site hits and clicks to other pages. While there is some valid info in the article, I don't find "complete" and if there is a click link to another page; I won't be traveling there.
A few of the head scratchers for me, from the article:
--- You might already own a 401(k) or IRA through your employer. However, you’ll only gain access to this cash when you turn 59.5-years old. If you have to draw down on your account before this date, you’ll end up paying penalties and fees on any money you withdraw.
>>> Well, yes and no. Ready cash for immediate needs = yes; as loans may be available from a 401k.
--- Visit your bank and open a Certificate of Deposit (CD) instead. Banks are always looking for more capital. By taking a CD with a bank, you agree to pay them a fixed amount every month in return for interest on your money.
>>> I must be out of the loop of knowledge for CD's as I don't know what, "agree to pay them a fixed amount every month", means.
--- Bonds are another attractive savings vehicle for long-term growth. Bonds couple interest earnings to the Federal Funds Rate, and you earn coupon payments on your principal investment. However, while relationships are a stable and liquid investment, they don’t offer much in the way of returns. At the moment, you can expect a yield of 1.75%, and if interest rates drop, then your profits do as well.
>>> Huh ???....." and if interest rates drop, then your profits do as well." Well, I think I know what he is trying to portray; but this would confuse the hell for most folks as to the relationship between bond yield movements and pricing to cause a profit or not.
Apparently, the writer hasn't kept up with U.S. bond funds returns for 2019, YTD.
--- Oliver Dale is Editor-in-Chief of MoneyCheck and founder of Kooc Media Ltd, A UK-Based Online Publishing company. A Technology Entrepreneur with over 15 years of professional experience in Investing and UK Business.His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More.He built Money Check to bring the highest level of education about personal finance to the general public with clear and unbiased reporting.[email protected]

--- Oliver Dale is Editor-in-Chief of GardenBeast and founder of Kooc Media Ltd, A UK-Based Online Publishing company. He has had a love of gardening for many years now and spends the spring to autumn months working on his own garden where he carries out one large project each year ( this year was decking & patio area ).
Oliver oversees the day to day running of the website & publication of our articles.
IMHO, the article offers a few decent things to think about for some folks (considerations for owning a home), is very confusing in areas noted above and doesn't qualify as Investing 101, and COMPLETE is, well..............NOT even close, eh? Does Mr. Dale or others provide a peer review of the information before publishing?
Not an article I will pass forward to others; and I don't understand why this link/article found its way to this site.
Lastly, I don't plan to visit their GardenBeast site.
My 2 cents worth and Take care,
Catch

https://www.etftrends.com/tactical-allocation-channel/income-investing-playbook-for-2020/
As negative yielding government debt grows globally and U.S. interest rates remain low, where can investors look to find yield in 2020 above the levels available from savings accounts and government bonds? In this Q&A, we examine the current market environment, highlight potential areas of opportunity and discuss how they may fit within a portfolio as investors plan their 2020 allocations.

From Fidelity Monitor & Insight
When realized gains in a fund exceed its realized losses, they must eventually be distributed to the fund’s shareholders — typically at year-end. Should you own such shares in a taxable account (and only in a taxable account), you must pay taxes on some combination of short- and long-term capital gains, and on qualified and non-qualified dividends. These estimated gains will be distributed this coming December.
To reiterate, fund distributions are a non-event when held in tax-deferred accounts such as an IRA or 401(k).
Moreover, you can never make money from “buying” a distribution because the fund’s NAV declines by the same amount as the distribution itself.
in a taxable account
However, if in the next few weeks you’re looking to buy a fund that’s going ex-dividend, you should probably wait until after the payout.
Our rule of thumb on the timing is one week for each percentage point of the estimate.

https://stockdailydish.com/emerging-markets-land-top-of-managers-portfolios-with-rising-rates/
Emerging markets land top of managers‘ portfolios with rising rates
By David Randall
NEW YORK, March 24 (Reuters) – Rising short-term interest rates in the United States are prompting Lipper Award-winning bond fund managers to add emerging-market debt and non-agency backed residential mortgages that they say offer more potential for gains in the year ahead.

TRP was great about updating PRWCX to reflect true value (Saturday morning). Still waiting for laggard Invesco to do the same for one that donutted there Friday. Not that it makes one iota of difference to me - and perhaps most of us.
It may, of course, have some impact on your year-end balance and therefore some effect on your RMD for 2020.

MikeM: I don't want to 'buy the distribution' and incur a further tax cost .. a lot of people rush to buy OEFs at the end of the year as they rebalance (I don't rebalance) and then get surprised when the fund which they just bought sends them a 1099 with potentially large gains in February. So by waiting until it pays out, I am avoiding increasing my tax costs this year. The ex-day is easy: as estimates on my funds are announced, I mark my calendar and put my buy orders in that day.

@rforno, something I've heard you or others do before, but why does it matter waiting to buy until after distributions were distributed. Isn't it just a balancing act for the fund? I don't see the positive effect buying before or after distributions, or am I missing something?

@Crash: From Bee.
What You Need to Know About Capital Gains Distributions

...Yes. I'm aware. I still have not taken a penny from my Trad. IRA in TRP. So, no tax due, yet. All my TRP stuff is Rollover (Trad, not Roth) IRA. Thanks.