Hi Guys, Hi Ted,
Ted, you are not alone in an overarching investment policy to Keep It Simple Stupid (KISS). A decade ago I owned most everything, mostly based on believed “expert” recommendations that accumulated over time. Today, I wholeheartedly join your KISS inspired ranks.
The wisdom of the crowd works in some circumstances and under certain conditions. But it often fails, and becomes the senselessness of the crowds. I battle to pair down my holdings and am slowly winning that challenge.
Outfits like CNBC and guys like Jim Cramer make it difficult with their frantic reporting. Guys like Jack Bogle and David Swensen get little press and even less air time because of their boring passive investment endorsements. We tend to follow the thundering herd rather than think and act independently. I suppose the behavioral wizards would call that a Confirmation bias; a bias that followers practice which could be harmful to end wealth.
Whenever I reflect on herd behavior, I recall the funny but serious bit that appeared many years ago on the old Candid Camera TV show. In that historical TV segment, a victim would get on an elevator with a group that was part of the ploy. The door would close and the in-group would unnaturally and simultaneously turn away from the door. Mostly, the victim would do the same. Herd instincts are hard to overcome.
Not only do investors become members of the herd, but so do financial journalists. Lately, the “less is more” theme has been making the news cycle rounds. CALPERS has been pruning their advisor army and expenses for several years now. It has been a lesson a long time in the learning. With so many diverse advisors, CALPERS had to be like the market itself, although with very high expenses. That’s a loser’s game.
Why do folks continue to support active fund managers? Although the odds of superior performance are definitely against them, these investors play the equivalent of the Lottery. They hope for the bigger payoff. There are a legion of sub-par performers, but there are some winners too. Hope is eternal.
I played that game for many decades, but not anymore. KISS works and is far less worrisome and is far less time intensive. Some lessons come slowly. Jason Zweig is spot on-target in this instance. And so are you, Ted.
Best Wishes.

So long a stretch IRAs rules remain unchanged they can be a multi-generational financial blessing:

Source:
what-is-a-stretch-ira?

I'm aware of a financial services company with several offices in the US that decided it was cheaper to relocate main offices in low-wage, southern states and hire overseas companies that staff call center workers in the Philippines and India. In many instances, the foreign workers were flown to the United States to train with US workers, and vice versa. Once the foreign workers were trained (or so they say), the US workers slowly dwindled. Obviously, there is a big savings for labor but the quality of work dropped markedly due to the problems with language barriers and understanding of US business. Some companies are willing to make that sacrifice to save money.

A good outline of China's place in the index world.
How to Tell Emerging from Developed Markets
Posted on June 11, 2015 by David Ott ,Acropolis Financial
After my article the other day about China being the second largest stock market in the world when you factor in all of their alphabet soup of stocks (click here for a refresher), a number of people asked me how China could still be considered an emerging market given their massive size.
It turns out that the generally accepted criteria for inclusion in either the developed or emerging market categories (and frontier, which is the real Wild West) is based on per-capita Gross Domestic Product (GDP), which measures the total economic output of a country on a per-person basis.
http://acrinv.com/how-to-tell-emerging-from-developed-markets/

FYI: Indexing is the new stock picking. It is, by far, the most efficient way to obtain a low cost and diversified portfolio. So it makes sense that index funds are gobbling up the financial markets. But this has some people concerned – what will happen when indexing gets so large that it becomes “the market”? Will prices become less efficient? Will the market become a homogenous basket of single prices?
Regards,
Ted
http://www.pragcap.com/is-indexing-going-to-eat-the-financial-markets

I could be wrong, but I am not aware of anyone who actually uses BrightScope, except for writers in the financial industry. Truth is that what I have seen includes outdated and sometimes just wrong information. Since much of their database is done by scraping other sites' information, they defend their wrong information on the other sites, or for the companies and individuals who do not update their information. Given the often inaccurate data thus far, I would not expect their fund company information to be of much use, either. And it is not like we cannot already get this stuff.

FYI: (Click On Article Title At Top Of Google Search)
Waddell & Reed Financial Inc., one of the biggest beneficiaries of the recent boom in mutual funds, has hit a rough patch. Nervous investors pulled $12.5 billion out of the investment company’s two largest mutual funds over the past 12 months.
Regards,
Ted
https://www.google.com/#q=Outflows+Hit+Waddell+&+Reed+Funds+wsj
MarketWatch Free Version:
http://www.marketwatch.com/story/outflows-hit-waddell-reed-funds-2015-06-10-231031125/print

Yes, the fund family that cannot remain still is on the move again. On June 15, two international funds will be renamed, and another fund will transition to a global mandate requiring a name change:
Royce Financial Services Fund will be renamed Royce Global Financial Services Fund. May invest up to 50% of assets in foreign securities.
Royce European Smaller-Companies Fund will be renamed Royce European Small-Cap Fund.
Royce International Smaller-Companies Fund will be renamed Royce International Small-Cap Fund.
New non-fundamental investment policy for each requiring at least 80% of iassets in stocks with mkt caps up to $3B.
“As was the case with a prior round of name changes in May, we believe these new names will help to distinguish each Fund’s approach within our lineup,” says Chris Clark, Royce Prez. [my emphasis]
Oh, o.k.
https://www.roycefunds.com/news/2015/06/royce-rename-three-funds-june-15-2015?utm_source=eword0615&utm_medium=email&utm_campaign=news-1&mkt_tok=3RkMMJWWfF9wsRonvqvKZKXonjHpfsX57uwoXqWylMI/0ER3fOvrPUfGjI4ARMJmI+SLDwEYGJlv6SgFT7fAMbZmwLgPWRA=

@ MFO Members: If my memory is correct, after a number of very, very, very, long-winded messages, I recommend that Cathy seek professional advice regarding her mother. I told her that she should be careful about taking financial advise for nameless, faceless strangers on the internet. Instead she would ask even more detailed question followed by well meaning MFO's answers that brought more question on infinatum. I won't mince any more words Cathy to me was nothing more than a pest. And what did those MFO members who reached out to here get a long, long absence before she reappeared. Time to close this thread !!!
Regards,
Ted

Also note that the chart does not represent the total amount of the M2 money supply, but rather how fast that supply circulates from one holder to another. It is therefore an indirect indicator of general economic activity.
from Wickipedia:
It is the number of times one dollar is spent to buy goods and services per unit of time. Alternatively and less frequently, it can refer to the transactions velocity of money, which is the frequency with which the average unit of currency is used in any kind of transaction in which it changes possession—not only the purchase of newly produced goods, but also the purchase of financial assets and other items.

I would love to see 4%+ someday on the 10 year. It could change some retired Baby Boomers' financial planning in a most positive way.

Just IMO & confirm the following with any Firm you inquire to want to Hire:
First of all as for buying any Ins. Products? Get at least a 2nd and 3rd Opinon, preferably from your own Ins. Agent and be very skeptical .. They are the #2 most Profitable Sales Item for Businesses. many pay 10% Commission to the Agent selling them.. and another 1% yr thereafter.. Thus why they push them so much ! I tell them, If I want an Insurance agent I'll use the one I have for over 20+ yrs thank you..
After Serving the Financial Industry ( and Several Firms , Including RJ ) thru my Limo business in Both Chicao and Boston for over 30 yrs and now Retired..
1- Understand, if they are a Franchise Business that like other Franchises, are Controlled and guided by the Franchisor ( Corp Office) and while may give individual Offices/Franchises some leaway, so that Your Investing your $ into Individual running is, at best 33% True, the other 66% is Controled by what Corp. Says they have to follow..
2- They are no Different in running their franchise type Office any Differently that a Mutual Fund store or EJ, etc.. They all have guidelines to adhear too by " Corporate".. and Depending on your account size, you may get a new Apprentice to one of the Senior Partners running that Office/Franchise.. but, all being Supervised by The Owenrs & Corporate..
3-Your 'Assigned Advisor Will Come and Go , Don't expect them to be with you ForeverMore.. and depending on your Account Size, their Replacement can be one of the Senior to New staff taking your account over, but again, Under the Guidence of the Franchise Owner(s) and 'Corporate'..
4- and you would be wise to be Frank with them, upfront and in informing them, while you have to disclose All your Assets to Determine your Investing plans, your only going to give them either (a) Their Min. Amt. Required to Open an Account or (b) a max of 25%, whichever is less for at least the 1st 3-5 yrs and/or until They Prove themselves Worthy to trust them with More of your hard Earned $.. " Talk is cheap, actions tell you who they really are and only time will prove that, right? "
5- As for these Message Board, always expect that at least 75% or more advisors have good intentions and are very Experienced and Manage their Own $ and don't use WMF's and thus have No Knowledge of what they could have Been & having one do at least 50% of their Decisions..
And , Like you do when evaluating Mutual Funds & Investment Mgmtn. Firms, unless they are willing to Share where their $ has been for the past 7,10 & 15 yrs to back themselves Up?
I'd be very skeptical of following their Suggestions and Advice where to Put your $..
DYOR and then Get In Person Advice from people you Know that have been as or more Successfull doing what you have and want to do , then wait at least 3 mos., before Investing or making any changes with your $ .
6-Personally? I WOULD Recommend RJ if at least 1 of the Min of 3 WMF you want to Ck into and be honest with them all upfront .. of what your doing, ( Comparison Shopping)
and if you have Portfolio's? Bring or send them copies of their history and performance to Let them Know your not Some Rookie at this investing Game.. as well as Informing them your Law Firm that does Family ( & Co.) Business and a CPA firm that does your Taxes and other things will also have to sign off using them as well..
Do you have a Law Firm and CPA firm ? If not? Why not? my CPA firm I've used for over 20+ yrs ( and Now in Retirement ) ave about $500 yr to do my taxes..= Chump change and never been Audited and to me, that is my #1 Priority doing taxes..( I've Been audited in my early yrs in my business and its a Nightmare! )
If the CPA Firm you use has a Good Reputation with IRS? It can make a Big Difference..
Inclosing> I've Owned some of RJ Stock for yrs now and Only because, they were ( and still are) the Financial firm of the Owners of the Limo Co. I was with .. Then again, they Opened up an account with them to get them as a Co. Client to serve them and other Wealthy Clients & Co.'s they have.. And that stock has been Free $ to me for yrs and the only reason I kept it and let it ride on its own.. I think its about 5% of my Tot Assets as of last yr.. And Opptimistically? Will also be Passed Onto my Heirs and up to them wether to Cash it in or keep it ..They, all being Richer than I ever was at their age and their nice Over paid Jobs and Pensions, don't need the $.. Both Living in the "Beverly Hills of the Midwest" ( NorthShore or Chicago).. and R Yuppies as well ! ( and their Neighborhoods/Assoc. Don't allow owners to Mow their own lawns, it all is done by the Assoc. Landscapers ! Its Disgusting ! ;-)
Hope that helps! ;-0)

Hi Old Joe,
Thank you for commenting on Davidrmoran’s submittal. It would have completely escaped my notice since I had mentally closed this MFO Discussion exchange.
The request to identify my investment lessons learned and from whom over six decades of financial accumulation is simply not a doable task, even if I wanted to accept the assignment. Sorry, I have no intention to reply to this unrealistic and unnecessary request.
I learn and unlearn every single day; it’s a continuous process. I learn daily from my wife, and from our friends and neighbors. I learn from MFOers, and that even includes Davidrmoran. In his last post, he endorsed John Waggoner as a financial writer, and then noted that Waggoner is retiring from his USA Today job. I did not know that he was leaving his USA engagement.
I too like John Waggoner’s financial wisdom. I have read his material for decades and will continue to do so with his new career adjustment. I believe that both Tom Lauricella and John Waggoner generate splendid columns and have an admirable work ethic. I trust both of them, and do not hesitate recommending them to both neophyte and seasoned investors.
I wish both them well in the next phase of their illustrious careers.
As an aside, I really liked your posting on the Unions topic. It is extremely well written and thoughtful. Nice work!
Best Wishes.

Are you taking price inflation into account?
Yes - I have a line item budget for the above years.
I seem to have too much month at the end of the pension check, especially as I pick up the growing costs of my healthcare.
Are your yearly decreases due to reduction in debt or some other costs that "falls off" over time?
No - just spending pattern.
Do you plan on staying away from younger women with needs, financial needs specifically?
No - they are paying their way now. They might have to pay me later.

.......................................

Are you taking price inflation into account?
I seem to have too much month at the end of the pension check, especially as I pick up the growing costs of my healthcare.
Are your yearly decreases due to reduction in debt or some other costs that "falls off" over time?
Do you plan on staying away from younger women with needs, financial needs specifically?

The Burnham L/S Financial Funds. Yes, a tad heavy on the ER but good manager and BURCX was barely down in 2007/2008.

Fidelity Select Financial Services Port: FIDSX
Fidelity Select Consumer Finance Port: FSVLX

Hi Dex,
I’m still waiting your response to the fair questions I asked. Why do you doubt that Tom Lauricella learned during his long tenure at the WSJ?
I believe anyone learns something every single day whether he intends to or not. I also believe we likely unlearn something everyday although we don’t like to admit our misunderstandings. I see no reason to suspect that Lauricella is so unique that he avoids these learning experiences.
Rather than defending your position, you deploy the debate loser’s tactic of attacking an opponent’s position. That’s an easy task to refute in this instance.
Even the subtitle of the piece notes that “My last bit of advice: Keep the strategy simple, and the costs low”. That’s a lesson learned.
Simply look at the headlines displayed below the title. All three are examples of lessons he learned over the years.
Just about every paragraph in the article recalls some other lessons learned. He talked about the market timing scandal. He reminisced about how “… high-paid stock-fund managers, who have since struggled to post better returns than simple, low-cost index funds” have failed to better serve the investing public. He later recalled the 130/30 mutual fund debacle. These were all learning experiences.
Lauricella concluded with “…. the focus is really on long-term investing. Hopefully this column had the same message.” That too was a learning experience since both earlier investors and financial writers often concentrated on short-term results rather than long-term process consistency.
The two articles that I referenced also demonstrate that, like most of us, Tom Lauricella is a learning machine with almost daily adjustments.
Look, Tom Lauricella was making a final address to the troops in his closure article. In any concluding ceremony, it deserves the respect, the goodwill, and the common courtesy usually accorded to anyone trying to be helpful.
Please explain why you so dislike Tom Lauricella’s writings. They seemed fair and open-minded to me. I’m always anxious to learn. I suspect you are too.
In the investment marketplace, a disagreement is no clarion call for undocumented and uncivil condemnation. It’s reasonable to take opposite sides of the trade and still be friendly and even cordial.
Best Wishes.

The small cap financials such as (RYFSX) seem o be showing some strong momentum.
performance of RYFSX
Anyone have a favorite financial sector funds or etfs?
My short list:
RYFSX
TEFAX
PRISX
FFBFX

FYI: (Sorry to see him go, Tom is an outstanding financial writer !)
Regards,
Ted
http://www.wsj.com/articles/what-i-learned-in-14-years-on-the-funds-beat-1433537708