Super Catchup for 401k/403b from 2025
Another Secure 2.0 provision for catchups for 401k, 403b, government 457 and federal TSP kicks in 2025.
For 55+ $7,500
For 60-63 $11,250 (higher of $10,000 and 150% of regular catchup)
SIMPLE retirement plan catchups are also adjusted: 55+ $3,500, 60-63 $5,250.
https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

I’m taking “early” retirement next week at 57, so been thinking about risk/reward. Have coworkers who couldn’t tell you what WSJ means, but had retirement 100% in SPY for 30 plus years. Compared to 70/30 ratio, could mean 8% AR vs 11%. Over 33 years
, could mean at least one million more. Coulda had the brokers yacht and Ferris Bueler’s Ferrari…gonna drink my big Black Cow…
One of the Ferraris From Ferris Bueller's Day Off Just Sold for $396,000 in 2020. Replica 250 GT.

I informed Seeking Alpha that I would no longer be writing articles on their website because I am spending free time volunteering at Neighbor To Neighbor and Habitat For Humanity. They told me that one option is to have payments donated to nonprofits and MFO, N2N and H4H are options. I'll give it a try. I just published, "Refining A Bucket Approach Strategy In Retirement".
https://seekingalpha.com/article/4744149-refining-a-bucket-approach-strategy-in-retirement

Assume that the market will go up during the year (that happens more years than not). Then if one doesn't need the cash flow from RMDs, one wants to take RMDs late when it's a smaller percentage of an IRA. Conversely, one wants to make Roth conversions early when a given conversion is a bigger percentage of an IRA. These are in conflict because one must take RMDs before doing any conversions.
For those with small (or no) RMDs and making large Roth conversions, doing everything early in the year can make sense. If one makes QCDs as part of the RMD (i.e. earlier than conversions), then the QCDs count toward the RMD quota.
The bottom line is that for some, QCDs, RMDs, and conversions are better done as beginning of year moves than as end of year moves.
"Consider whether it’s advantageous to convert some traditional retirement account funds into a Roth retirement account."
A conversion can make sense even if you expect to be in the same or lower tax bracket in the future. If one has "space" in the 12% tax bracket (e.g. pre-SS, pre-pension, pre-RMD, post-retirement), then one can fill up that space with conversions. This is especially advantageous if one can pay the taxes on the conversion out of a taxable account.
Given the uncertainty in investment distributions, this is a move that may best be done near the end of the year when estimated distributions are available and you know how much "space" you have available.

Two excerpts from this week’s Barron’s that may relate …
(Excerpt #1) Randall Forsyth comments on scheduled Dec. 18/19 FOMC Meeting …
”Given the largely as-expected jobs report, the federal-funds futures market put an overwhelming 85.1% probability the Federal Open Market Committee would lower its key policy rate by 25 basis points from the current target range of 4.5% to 4.75% at the conclusion of its two-day policy meeting on Dec. 18, according to the CME FedWatch site … That pretty much assumes that the next key data release, November’s consumer price index, doesn’t surprise to the upside.”
”Jobs Data Should Cement a Rate Cut. What’s Uncertain Is Everything Else.”
Author: Randall Forsyth
(Excerpt #2) Provocative reader comment on article ”Inflation Isn’t Dead Yet. How to Protect Your Retirement Income”. I’ve quoted the comment in full, but have omitted name. I’m not expert enough on bonds to have an opinion, but thought this might prompt some informed discussion.
”After inflation bonds at current prices pay almost nothing, and junk bonds aren't much better. Bonds have zero protection against inflation. If you want TIPS (or any bonds) buy them on your own, not in a fund. That way you get paid in full at maturity and don't have to worry about price changes (drops from interest rate increases) before maturity. And don't pay off your mortgage; the Fed and Congress will continue to pay off 3 % of your balance every year, and will probably do a lot better for you. And with inflation supposedly nearing 2 % that is after drops in oil prices. Between Middle East problems, the topping of the Permian, green policy fantasies, and lots else, oil will almost certainly be going up and inflation with it.”
Both excerpts from Barron’s / December 9, 2024

https://www.sec.gov/Archives/edgar/data/1103243/000141304224000954/cweil497.htm
497 1 cweil497.htm
Christopher Weil & Company Core Investment Fund
A series of PFS Funds
Supplement dated December 6, 2024
to the Prospectus and Statement of Additional Information
each dated March 28, 2024
The Board of Trustees (the “Board”) of the PFS Funds (the “Trust”) has approved a Plan of Liquidation (the “Plan”) relating to the Christopher Weil & Company Core Investment Fund (the “Fund”), effective December 5, 2024. Christopher Weil & Company, Inc., the Fund’s investment adviser (the “Adviser”), has recommended to the Board to approve the Plan based on its representations the Fund is no longer a core focus of the Adviser’s business, the Fund’s assets have declined and the Adviser sees limited prospects for increasing assets, and the Adviser’s indication that it does not desire to continue to support the Fund. As a result, the Board has concluded that it is in the best interest of the shareholders to liquidate the Fund.
In connection with the proposed liquidation and dissolution of the Fund called for by the Plan, the Board has directed the Trust’s principal underwriter to cease offering shares of the Fund immediately as of the date of this Supplement. Shareholders may continue to reinvest dividends and distributions in the Fund or redeem their shares until the liquidation. While undergoing an orderly liquidation, the Fund will invest in cash equivalents and will not be pursuing its investment objective.
It is anticipated that the Fund will liquidate on or about December 23, 2024. Any remaining shareholders on the date of liquidation will receive a distribution of their remaining investment value in full liquidation of the Fund. If you have questions or need assistance, please contact your financial advisor directly or the Fund toll-free at 1-888-550-9266 or the Adviser at 1-858-724-6040.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of any redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.
This Supplement, and the existing Prospectus dated March 28, 2024, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated March 28, 2024 have been filed with the Securities and Exchange Commission, are incorporated by reference, and can be obtained without charge by calling the Fund toll-free at 1-888-550-9266.

Many of my higher rate CDs are maturing. I am extending some to 3 to 5 years even if the rate is 3.40% for 3 years(the rate I am getting for one maturing today). I just turned 76 years of age. With ultra-conservative passive investing my post-retirement savings has doubled and, so far, knock on a lucky door, my non-saving, non-RMD income has exceeded my spending. (Spending, be deviled, 57% of that spending this year has been nothing but federal and property tax.) I discovered I just no longer want to chase the rates or the markets. I guess I should find some tax free stuff since anything I do seems to raise my unused dividends/interest and cost me more in taxes.
Girls just wanna have fun.

https://www.sec.gov/Archives/edgar/data/1281790/000116204424001335/frankfundswesthillsliqsupple.htm
497 1 frankfundswesthillsliqsupple.htm
West Hills Core Fund
LEBOX
a series of the Frank Funds)
Supplement dated December 3, 2024 to the Prospectus,
Statement of Additional Information ("SAI") and Summary Prospectus dated November 1, 2024.
On November 26, 2024 the Board of Trustees (the "Board") of Frank Funds (the "Trust") determined that it is in the best interests of shareholders to liquidate the West Hills Core Fund (the "Fund"), a series of the Trust, following a recommendation by the Fund's investment adviser, Frank Capital Partners, LLC. The Board has determined to liquidate the Fund with the liquidation payment to shareholders expected to take place on or about January 3, 2025 (the "Liquidation Date").
Effective at the close of business on December 30, 2024, the Fund will not accept any purchases and will no longer pursue its stated investment objective. The Fund may begin liquidating its portfolio and may invest in cash equivalents, such as money market funds, until all shares have been redeemed. Any capital gains will be distributed as soon as practicable to shareholders. Shares of the Fund are otherwise not available for purchase.
Prior to the Liquidation Date, you may redeem your shares, including reinvested distributions, in accordance with the “Redeeming Fund Shares” section in the Prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. Please refer to the “Dividends, Distributions and Taxes” section in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.
Any shareholders who have not redeemed their shares of the Fund prior to the Liquidation Date will have their shares automatically redeemed as of that date, and proceeds will be sent to the address of record. If you have questions or need assistance, please contact your financial advisor directly or the Fund at 1-866-706-9790.
This Supplement and the Prospectus, SAI and Summary Prospectus dated November 1, 2024 provide relevant information for all shareholders and should be retained for future reference. The Prospectus, SAI and Summary Prospectus have been filed with the Securities and Exchange Commission and are incorporated by reference. Copies of each can be obtained without charge by calling the Fund at 1-866-706-9790.

Stable-Value (SV) Rates, 12/1/24
TIAA Traditional Annuity (Accumulation) Rates
Rates up by 25 bps
Restricted RC 5.50%, RA 5.25%
Flexible RCP 4.75%, SRA 4.50%, IRA-101110+ 4.75%
(TIAA Declaration Year 3/1 - 2/28)
TSP G Fund 4.250% pending (previous 4.375%).
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/1752/thread

https://www.sec.gov/Archives/edgar/data/889284/000139834424021347/fp0091223-1_497.htm
497 1 fp0091223-1_497.htm
Filed pursuant to Rule 497(e)
File Nos. 033-49098 and 811-06719
STERLING CAPITAL FUNDS
SUPPLEMENT DATED NOVEMBER 22, 2024
TO THE STERLING CAPITAL BEHAVIORAL INTERNATIONAL EQUITY FUND SUMMARY PROSPECTUSES,
CLASS A AND CLASS C SHARES PROSPECTUS,
INSTITUTIONAL AND CLASS R6 SHARES PROSPECTUS,
AND STATEMENT OF ADDITIONAL INFORMATION,
EACH DATED FEBRUARY 1, 2024, AS SUPPLEMENTED
This Supplement provides the following amended and supplemental information and supersedes any information to the contrary with respect to the Sterling Capital Behavioral International Equity Fund in the Class A, Class C, Institutional and Class R6 Shares Summary Prospectuses, the Class A and Class C Shares Prospectus, the Institutional and Class R6 Shares Prospectus, and the Statement of Additional Information, each dated February 1, 2024, as supplemented:
The Board of Trustees of Sterling Capital Funds has approved the liquidation of the Sterling Capital Behavioral International Equity Fund (the “Fund”). The liquidation is expected to occur on or about January 24, 2025 (the “Liquidation Date”). As of the date hereof, shares of the Fund are no longer being offered for sale.
Prior to the Liquidation Date, you may sell your Fund shares, including reinvested distributions, in accordance with the “Selling Your Shares” section of the Fund’s prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. You may wish to consult your tax advisor about your particular situation.
Prior to the Liquidation Date, the Fund will no longer pursue its stated investment objective. The Fund will begin liquidating its portfolio and may invest in cash, or cash equivalents such as money market funds, until all Fund shares have been redeemed and liquidation proceeds distributed to Fund shareholders.
ANY SHAREHOLDERS WHO HAVE NOT SOLD THEIR SHARES OF THE FUND PRIOR TO THE LIQUIDATION DATE WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD
Please contact your financial advisor or Sterling Capital Funds at 1-800-228-1872 if you have any questions about the liquidation.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a redemption of Fund shares and any distributions from your retirement account. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement. For additional information regarding the liquidation, shareholders of the Fund may call 1-800-228-1872.
SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUSES AND THE STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
SUPP-11222024

https://www.sec.gov/Archives/edgar/data/1016073/000139834424021060/fp0091087-1_497.htm
497 1 fp0091087-1_497.htm
25 East Erie Street
Chicago, Illinois 60611
1-800-560-6111
DRIEHAUS SMALL CAP GROWTH FUND
Investor Shares: *DVSMX
Institutional Shares: *DNSMX
(the “Fund”)
SUPPLEMENT DATED NOVEMBER 21, 2024
TO THE PROSPECTUS AND SUMMARY PROSPECTUS FOR THE FUND DATED APRIL 30, 2024
(the “Prospectus” and “Summary Prospectus,” respectively)
On September 17, 2024, the Board of Trustees of the Driehaus Mutual Funds approved the closure of the Driehaus Small Cap Growth Fund (the “Fund”) to certain investors, as further described below. This change, referred to as a “soft-close,” will be effective immediately after 4:00 pm Eastern Time on December 2, 2024.
You may purchase Fund shares and reinvest dividends and capital gains you receive on your holdings of Fund shares in additional shares of the Fund if you are:
·A current Fund shareholder;
·A participant in a qualified retirement plan that offers the Fund as an investment option or that has the same or a related plan sponsor as another qualified retirement plan that offers the Fund as an investment option; or
·A financial advisor or registered investment adviser whose clients have Fund accounts.
You may open a new account in the Fund if you:
·Are an employee of Driehaus Capital Management LLC (the “Adviser”) or its affiliates or a Trustee of Driehaus Mutual Funds;
·Exchange your shares of another Driehaus Mutual Fund for shares of the Fund;
·Hold shares of the Fund in another account, provided your new account and your existing account are registered under the same address of record, the same primary Social Security Number or Taxpayer Identification Number, the same name(s), and the same beneficial owner(s); or
·Are a financial advisor or registered investment adviser whose clients have Fund accounts.
These restrictions apply to investments made directly through Foreside Financial Services LLC, the Fund’s distributor, as well as investments made through intermediaries. Intermediaries that maintain omnibus accounts are not allowed to open new sub-accounts for new investors, unless the investor meets the criteria listed above. Once an account is closed, additional investments will not be accepted unless you meet the criteria listed above. Investors may be required to demonstrate eligibility to purchase shares of the Fund before an investment is accepted. The Fund reserves the right to (i) eliminate any of the exceptions listed above and impose additional restrictions on purchases of Fund shares; and (ii) make additional exceptions that, in the Adviser’s judgment, do not adversely affect its ability to manage the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
For more information, please call the Driehaus Mutual Funds at 1-800-560-6111

In 1987, Fidelity introduced the T-account, which combines all your fund accounts into a single statement. If you are invested in several funds or have a retirement account as well as a taxable account, this simplifies your record keeping and greatly reduces the amount of mail you receive from the Fidelity organization.

https://www.tangotools.com/ui/fkbook.pdf
Looking at my father's old statements, the "core" (transaction) holding in brokerage accounts was originally just "cash". What would now be called FCASH. Fidelity owed you that money on demand (like a bank) and paid some interest on that cash. As you said, FCASH is not a sweep account. It is, simply, cash.
Later statements (early 2000s) show MMFs being used as core accounts. These are sweep accounts, with your cash being "swept" into a MMF and "swept" out when needed to pay for something. You probably had a choice back then of using a MMF (sweep) or keeping the money in lower paying FCASH account.
Today when you open a Fidelity brokerage account you are "forced" to make a choice. Depending on the type of account you may use a MMF sweep (core) account or an FDIC-insured bank sweep account. But you also have the option of keeping your cash as cash (FCASH).
People tend to think of "sweep" as "bank sweep", but it is any account that cash is "swept" into. Including the MMF core accounts.

Broker-dealers may offer you several options for managing your cash. One option, a bank sweep program, typically involves the automatic transfer (or “sweep”) of cash in the brokerage account into a deposit account at a bank that may or may not be affiliated with the broker-dealer. Other options include leaving cash in the brokerage account, or sweeping cash to one or more money market mutual funds.

https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-78
Schwab also uses "sweep" to mean an account into which cash is swept, whether that be a bank sweep or a money market sweep:
"Schwab One Interest [Schwab's equivalent of FCASH] and Bank Sweep are the two primary cash features. The Money Fund Sweep is an additional cash feature available to certain accounts."
https://www.schwab.com/cash-investments

Tax-Free Virginia, Sustainable Equity and International Stock Funds
https://www.sec.gov/Archives/edgar/data/1040612/000175392624001853/g202525_497.htm
497 1 g202525_497.htm 497
Madison Funds®
Supplement dated November 12, 2024
This Supplement amends the Prospectus and the Statement of Additional Information of the Madison Funds dated February 28, 2024, as supplemented, and the Summary Prospectus, each dated February 28, 2024, for the following funds, as applicable: Madison Tax-Free Virginia Fund, Madison Sustainable Equity Fund, Madison International Stock Fund, Madison Conversative Allocation Fund, Madison Moderate Allocation Fund, Madison Aggressive Allocation Fund, Madison Diversified Income Fund and Madison Covered Call Equity & Income Fund.
Liquidation of Madison Tax-Free Virginia, Sustainable Equity and International Stock Funds
On November 6, 2024, the Board of Trustees of the Madison Funds (the “Trust,” and each series thereof, a “fund”) determined that, as it relates to the Madison Tax-Free Virginia, Sustainable Equity and International Stock Funds (the “Funds”), it is in the best interest of the Funds and their shareholders to liquidate the Funds. Accordingly, the Board authorized the Trust to enter into a plan of liquidation (the “Plan”) on behalf of each Fund to accomplish this goal. It is anticipated that all outstanding shares of the Funds will be redeemed and the Funds will discontinue operations on or about the close of business on Friday, February 21, 2025 (the “Liquidation Date”), pursuant to each Plan. Any shareholder remaining in one or more of the Funds on this date will receive a liquidation distribution equal to the shareholder’s proportionate interest in the remaining net assets of the applicable Fund(s).
To the extent possible, each Fund will be closed to new accounts, to new investments in existing accounts (other than reinvestment of income or capital gains distributions), and incoming exchanges as of the open of trading on the New York Stock Exchange on Friday, December 8, 2024. Exceptions may be made in limited circumstances when approved by the officers of the Trust where it is not operationally possible or otherwise impracticable to prohibit new purchases by an account. Shareholders may continue to redeem their Fund shares on each day a Fund is open for business between now and the date of the planned liquidation. Shareholders may exchange their Fund shares for shares of another fund in the Madison Funds mutual fund complex in accordance with the terms of each fund’s prospectus at any time prior to the Funds’ cessation of operations. Each shareholder who does not choose either of those options and remains in a Fund until the Liquidation Date will receive a liquidating cash distribution equal to the aggregate net asset value of the Fund shares that such shareholder holds at the time of the liquidation. Shareholders are encouraged to consider options that may be suitable for the reinvestment of their liquidation proceeds, including exchanging into another fund in the Madison Funds mutual fund complex.
You should note that on or before the Liquidation Date, the Funds will no longer actively pursue their stated investment objectives and Madison Asset Management, LLC (“Madison”), the Funds’ investment adviser, will begin to liquidate the Funds’ portfolios. To prepare for the closing and orderly liquidation of the Funds and meet anticipated redemption requests, each Fund’s portfolio managers will likely increase the portion of each Fund’s assets held in cash and similar instruments in order to pay for Fund expenses and meet redemption requests.
The Board of Trustees may determine to accelerate the Liquidation Date. If this were to occur, revised information will be transmitted to remaining shareholders pursuant to a further prospectus supplement.
The Funds do not give tax advice. Although the Funds believe the following information is correct, shareholders should consult with their own tax advisors. The automatic redemption on the Liquidation Date will generally be treated the same as any other redemption of Fund shares for tax purposes, so the shareholders (other than tax-qualified plans or tax-exempt accounts) will recognize a gain or loss for federal income tax purposes on the redemption of their Fund shares in the liquidation. In addition, each Fund and its shareholders will bear the transaction costs and tax consequences associated with the disposition of such Fund’s portfolio holdings prior to the Liquidation Date.
In addition, shareholders invested through an Individual Retirement Account (“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 may choose to authorize, prior to the planned liquidation date, a direct transfer of their retirement account assets to another tax-deferred retirement account.
To redeem or exchange your shares if they are held directly with the Funds, call Shareholder Services at 1-800-877-6089 between the hours of 8:00 a.m. and 7:00 p.m. Central time. If you invest in the Funds through a brokerage account or retirement plan record keeper, please contact them directly.
Class C Shares Closing/Converting to Class A Shares
On November 6, 2024, the Board of Trustees of the Trust also approved the termination of all outstanding Class C shares of the funds, which it has deemed to be in the best interests of the shareholders of the Class C shares of the funds. The funds with Class C shares outstanding are the Conservative Allocation Fund, Moderate Allocation Fund, Aggressive Allocation Fund, Diversified Income Fund, and Covered Call Equity & Income Fund. Class C shares will be closed to new accounts and new investments into existing accounts, other than through dividend and/or capital gain reinvestments as of December 8, 2024.
Effective after the close of business (typically 4:00 p.m. EST) on Friday, February 14, 2025, (the “Closure Time”), Class C shares of each fund will be automatically converted to Class A shares of each respective fund as noted in the chart below. The conversion of Class C to Class A shares of the same fund is not a taxable event, and no contingent deferred sales charges will be assessed, if applicable, on this one-time conversion of shares...

”Yes politics...politicians...they are very much the spoon that stirs the pot or sets out the punch bowl.”
Got me wondering. How have various Presidents / Administrations affected our investment fortunes over the time most of us have been investing? Keep in mind, please, that (political) decisions made today may have economic ramifications that last far longer (sometimes decades) beyond the tenure of the politicians that enact them (reasI oppose term limits for Congress.
What I remember about different administrations since I began watching the markets in the 1950s:
Eisenhower - Increased infrastructure spending. The interstate highway system we enjoy today was undertaken. Consider the effects on commerce. Also helped in the post WWII reconstruction of Japan and Europe. Costly of course.
JFK - Promised to land a man on the moon by the end of the decade (60’s). It was costly and so strained the budget. But we continue to enjoy the benefits of the progress made in using space for our betterment. (GPS for instance). Consider all the economic benefits. Also, JFK was leary about getting deeply entrenched in Vietnam. Imagine how history and economics might have evolved had we not.
LBJ - His legacy may well be our deepening involvement in Vietnam. Costly in lives as well as money. May have planted the seeds of the coming inflation - although demographics played a part. LBJ’s “Great Society” undertook increased Federal spending the country could ill afford at the time. This helped stoke the rising inflation.
Nixon - Wage and price controls. A placebo / bandaid approach to combating inflation which was still in the 4-5% range. Significant in that it awakened public interest in the issue. Also, under Nixon the U.S. largely withdrew from Vietnam. Also, under Nixon the fixed price of gold at $35 an ounce was ended by international agreement.
Ford - With the help of wife Betty, Ford introduced the “WIN” pin. (You can still buy one on eBay.) WIN stood for ”Whip Inflation Now” Another placebo approach. We Americans prefer easy solutions.
Carter - With inflation raging (double-digits) Carter appointed Paul Volker Federal Reserve Chair in 1979. The rest is history.
Regan - Increased defense spending sharply stoking inflation. But under Regan the steep Federal Reserve interest hikes led to a sharp recession beginning in 1981 - the worst downturn up to then since the Great Depression. Unemployment surged to 10.8% in 1982. But if you had money to invest you could pull 15% in a money market fund. Who needed stocks?
In August 1981 Regan fired striking members of the Professional Air Traffic Controllers Organization (PATCO) after they went on strike violating a federal law against strikes. My personal view is that was the leading edge of an attack on organized labor that lasted decades. Over many years pensions were gutted and wages fell as labor’s ability to negotiate benefits waned. But this probably was beneficial for stock investors. The loss of defined benefit retirement packages also helped propel the rise of the 401-K. Some think this investment vehicle has led to a “boom” for index investing - though that’s a far reach.
Also - In 1987 Regan appointed Alan Greenspan to Federal Reserve Chair. Under Greenspan equity markets surged. Greenspan’s tenure ended in 1986. Critics sight his monetary policy as too lax and stoking inflation in later years.
Bush 1 - Negotiated and signed NAFTA, expanding global trade. This has paradoxically been blamed by some for loss of jobs in the U.S. - although unemployment remains low. I think the ongoing political repercussions from NAFTA do reverberate through the economy today. But they are hard to quantify.
Clinton - We actually achieved a balanced budget under Clinton. But his personal problems partly overshadowed his accomplishments.
Bush 2 - In Bush’s term a global recession of great magnitude ensued which cost equity (index) investors around 50% before it ended 15 months later. Junk bonds were hit hard. The Fed undertook strong monetary stimulus. The effects of those Fed stimulative measures are likely still being felt today. Federal spending increased sharply. “President George W. Bush's economic policies added $6 trillion to the national debt by funding two wars and three tax cuts.” (from the balance money.com).
I’ll stop here. I think the effects of the last three Presidents are too recent to fully access, and very controversial, as all three continue to be actively involved in the politics of the day. Further - a global pandemic that began in 2020 greatly altered the stage. Any administration would have had trouble coping with the economic challenges. Fiscal and monetary emergency measures during the pandemic are seen as one cause of the recent inflation - along with the distortions created by the pandemic itself.
-
Question: Would knowing in 1950 (err … pick your start date) what future politicians would do have affected the way you would have chosen to invest for the long term?

I hold Aegis Value Fund, symbol AVALX, in a retirement account but have been considering it for my taxable account since I have more room. The December income and capital gain distibution estimates are:
Ordinary Income $0.37 - $0.41
Short-Term Capital Gains $0.49 - $0.54
Long-Term Capital Gains $2.66 - $2.92
The NAV closed at 41.15 yesterday. I am in a fairly high tax bracket and it seems to me that the ordinary income and STCG distributions are fairly high. Using an NAV of 41.15, the LTCG distribution is 6.4%. That too seems high. I am concluding that AVALX is best suited for my retirement account. Is this a correct conclusion?

Ad-hoc feature returns this week.
LINK1 LINK2 BarronsLINK
TRADER. Wall Street exhaled as the control of White House and Senate had clarity, but that for House is still in limbo (Republicans need to pick up only 7 more, but Democrats need 19 more). Stocks rose sharply, while the volatility index VIX fell sharply. Investors are reviewing Trumponomics 1.0 to figure out Trumponomics 2.0 and are betting on value/cyclicals (IVE), financials (XLF, KRE), energy (XLE), industrials, defense and small caps. In healthcare, Medicare Advantage (Part C) may get a boost, and ACA/Obamacare the boot.
But the economic and market conditions now are different. It’s unclear how much of the tax cuts, tariffs (on friends and foes) and deregulations will go through. Watch tech and retail for first adverse impacts of new tariffs-counter-tariffs. Inflation may remain above the Fed’s +2% average target and that target may be in question (e.g. why not +3%?). The budget deficit is already double that in 2016, and the bond market may not like a big growth in deficits. That has been the message of the bond market already, but 5%+ 10-yr may pose real problems for both stocks and bonds. Earnings growth estimate remain strong in double-digits.
The elections are over and Trumponomics 2.0 will be here soon. Consider financials (XLF, KBE, KRE; play on lower rates and deregulation), value/cyclicals (IVE; catchup play), small caps (IJR, SPSM; play on domestic companies), bonds (SHY, LQD, HYG; play on lower rates, even if rates may move up later due to inflation, deficits, debt). All these had strong post-election bounces, but there is more to come.
INTERVIEW/Q&A/FUNDS. Meb FABER, Cambria (Cofounder, CEO, CIO; SYLD, etc). Value manager Faber has an active eTF SYLD that focuses on SHAREHOLDER YIELD (dividend yield + buyback yield); the eTF also takes into account valuation, quality, momentum, and has caps on sectors and countries. Since 2009, the SP500 has been a 10-bagger, beating most other things – unprecedented, comparable to the Roaring 1920s, the Nifty Fifty of early-1970s, the Dot. com bubble of late-1990s, or whatever. Both earnings growth and P/E expansion contributed to this fantastic move. But where to now? If you put value and trend (momentum) in 4 boxes, the best box has low valuation and uptrend, but the 2nd best box is expensive valuation and uptrend (meaning trend trumps valuation). The ways to diversify away from market-cap indexes include dividend stocks (obviously, Faber prefers shareholder yield), foreign markets, EMs, etc. The firm also has an active global asset allocation eTF GAA, an eTF of eTFs.
FUNDS. Indexing has benefited large caps. Many startups and early-stage companies remain private longer, and there are several unicorns among the private companies. The M&A and bankruptcy have eliminated many weak public small caps. So, the universe of public small caps has shrunk. The total market Wilshire 5000 index now has only 3,370 stocks. Small cap R2000 has many unprofitable companies (a better small-cap index is SP SC 600). People are thinking that the old Fama-French studies about outperformance of small caps don’t apply anymore. Mentioned are OEFs AVALX, NEAGX; eTFs DFAS, IJR, IWM, SPSM. (By @lewisbraham at MFO)
FUNDS. Post-election, Tesla/TSLA has run up sharply, but the new CEF DXYZ (3/26/24- ) has done twice better; its premium is an astounding +329%. It has high exposure to TSLA and SpaceX. The fund buys private unicorns through their venture-capital financing and pre-IPO stages. But its recent rise may be as fleeting as its moonshot in April. (Retail investors don’t have easy access to the private-equity market, so the premium is so high. The private-equity market is quite illiquid and volatile.)
INCOME. Small caps with good dividends include CWH (retail), CRGY (energy), KGS (energy); eTFs DES, OUSM. Small caps are seen among the beneficiaries of Trumponomics 2.0.
OTHER VOICES. Allan SLOAN. There aren’t many companies that now offer traditional/DB PENSION plans. Those that still offer them to current employees or retirees are offloading the DB pension plans for ANNUITIES from insurers. The characterization and evaluation of liabilities are different for pension plans and insurers. So, companies typically have large one-time gains on these conversions. An obvious loss for beneficiaries is the loss of PBGC guarantee for the pension plans (and they don’t have a say on what insurer was chosen for conversion).
RETIREMENT. Just when investors thought that bond yields were head lower, they rose instead. The bond market is getting nervous about annual deficits and total debt. Bond volatility index MOVE is high (it has eased some post-election). But the bond market is more than the rate-sensitive Treasuries. Consider shorter maturities with more credit risks – VMBS, IGSB, USHY, FRA (CEF).

The main issue apparently isn't about salary increase. The union is trying to restore some version of a defined benefit retirement plan. Probably a lost cause, but I wish them well.

Good luck with that. Losing the accumulation phase is nearly impossible to catch up. Besides, pension plans have been disappearing from the work place and replace with define contribution plans. Workers have to contribute to it and manage it throughout their lives.

Opened a position in QQMNX today. No trade fees at Schwab which was a pleasant surprise so I purchased additional small lots too with the small cash positions I had in a few retirement accounts.

Though a bit shorter than usual (six stories instead of seven or eight) because I suspect it will be a bit hard to be heard above the clamor of the election. Just finished reading a story on coping with election anxiety which made good points even if it's a bit hard to chill out.
Devesh, as I note in the publisher's letter, has been called back to active service in the world o' finance. I will miss his voice even though I cheer for his opportunities.
Lynn continues to humble and inspire me with the breadth of his post-retirement vision and engagement. That continues this money with his advice on living paycheck-to-paycheck and his work with a group that helps folks facing that exact challenge.
The unifying theme on the three fund specific pieces might be "a redemption story." AlphaCentric has been mightily troubled, into which CrossingBridge might bring an island of calm and strong performance. David Sherman is very sure that "approach with caution" is good advice for folks interested in AlphaCentric Real Income. His team is working to create a smooth portfolio transition and a valuable tool for you, but both with take time.
Bridgeway is one of those groups whose culture is utterly admirable (from capping executive comp to donating half of their earnings to charity to have the senior people answer the phone when you call) but whose performance is streaky. Back in the days of Brill's MFI we used to have portfolio contests judged on monthly performance. If you wanted to use, toggle Bridgeway Ultra-Small with Bridgeway Ultra-Large and a soupcon of Technology Value was nearly unbeatable. For a long while Aggressive Investor (and not-quite-as Aggressive Investor II) were golden. Then ... In any case, they think they've found a powerful tool in their Intangible Capital Intensity metric, they've been running private money successfully with it and the lead manager built a $15 billion practice at QMA using a similar discipline.
Even Tweedy, Browne has elements of redemption. They're 100 years old now, deeply committed to value and famously authors of What Has Worked in Investing. Except that it hasn't worked quite as it used to which has led Tweedy in the direction of "value in a new century" research. High dividend was one move, insider alignment (along with value) is the next. They rarely take impulsive steps, so I'll be curious to see how things play out.
And The Shadow is chronicling a lot of active ETF from mutual fund guys and fund-to-ETF conversions, signs of a reorienting industry.
Finally, you'll note our podcasting foray. Let me know if there's any gain there, and we can try using the tech on investing-specific articles. In theory it's just "upload and stand back." In practice, it takes five or six sets of revise-and-resubmit to get the "podcast hosts" to catch our meaning and direction. That said, if it works for folks, we'll do it.
Cheers.

Retirement plans COLA adjustments for 2025:
2025-cost-living-adjustments-retirement-plans