@Lewis You got to be kidding me, Pocahontas's, recession scare appears long on fear, short on facts.
Regards,
Ted
https://www.cnbc.com/2019/07/22/elizabeth-warrens-recession-scare-is-long-on-fear-short-on-facts.html
National Review:
https://www.nationalreview.com/2019/06/elizabeth-warren-terrible-plans/
Washington Post:
https://www.washingtonpost.com/opinions/elizabeth-warren-has-lots-of-ideas-bad-ideas/2019/06/19/ec645b36-920e-11e9-b58a-a6a9afaa0e3e_story.html?noredirect=on&utm_term=.e44670e19a1c
Mises Institute:
https://mises.org/power-market/another-reminder-elizabeth-warren-fraud
Washington Examiner:
https://www.washingtonexaminer.com/opinion/elizabeth-warren-is-wrong-this-race-really-is-about-the-size-and-scope-of-government

It looks we've got a repeat.
https://mutualfundobserver.com/discuss/discussion/51340/prospect-of-fed-cut-pushing-dividend-investors-into-tech-energy

FYI: Warren Buffett isn’t close to beating the market this year, and a giant pension fund has cut its investment in Berkshire Hathaway , the investment juggernaut that Buffett helms.
Class B shares of Berkshire Hathaway stock (ticker: BRKb ) have only managed a 0.9% gain so far in 2019 through Friday’s close, in sharp contrast to the S&P 500’s 18.7% rise.
We’ve noted that Buffett suffered “a reputational and financial black eye” earlier this year as Berkshire took a $1 billion paper loss when Kraft Heinz stock (KHZ)—one of its larger investments—tumbled. Years ago, Buffett backed the combination of H.J. Heinz and Kraft Foods Group that created the company.
Oregon’s Public Employees’ Retirement Fund slashed two-fifths of its Berkshire stock investment by selling 141,822 Class B shares in the second quarter. OPERF, as the pension is known, made the disclosure in a form it filed this week with the Securities and Exchange Commission. OPERF, which recently was counted as the 42nd largest public pension in the world by assets, now owns 222,763 Class B Berkshire shares.
Regards,
Ted
https://www.barrons.com/articles/berkshire-hathaway-stock-is-lagging-and-a-giant-pension-just-slashed-its-stake-51563707754

2019 contribution limits are:
401(k): $56K + $6K (catch up) = $62K
SEP: $56K (no catch up provision)
https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
The IRS has not yet announced 2020 figures for retirement plans. If Vanguard provided contribution limits for 2020, they were projections.
Projected for 2020:
401(k): $57K + $6.5K (catch up) = $63.5K
SEP: $57K (no catch up provision)
https://thefinancebuff.com/401k-403b-ira-contribution-limits.html
Again, see Schwab example cited above for comparison between SEP and DB plan. (For a fair comparison, you need to account for the earnings that are added to the DB plan but not to the SEP. This significantly reduces the gap between the two.)

Hi msf thx... What firms do you recommend for db plans? Vanguard
Hi ema
I believe you can have 401k and distribution 18 or 20k annually and you can buy higher aggressive stocks funds in these
My tax adivesor states same as your thoughts have to be 5 or 6% annually returns or you may run into tax issues irs issues
If you don't like plans you can switch to sep-ira 5 yrs later this is what Vanguard advisor told me (56k distribution 2020)

That sounds about right. I believe you could instead project a higher ROR and contribute less. You would still fund the pension plan up to the IRS limit ($225K/year pension @retirement). You would invest for higher returns and wouldn't even have to contribute as much to get the same level of benefits. But see below for risk.
Are you sure that you were being told that you should not invest for higher return, or did your actuaries say that they would use a lower rate of return for projections? They have to use a credible ROR for projections to determine the max you can contribute. The object is to reach the max permitted balance at retirement. The lower the assumed ROR, the more you can contribute, at least initially.
Regardless, the amount you can/must contribute is recalculated annually. If you project a low (but credible) ROR and perform better, your subsequent contributions will be reduced. If you project a higher (still credible) ROR and underperform, your subsequent min contribution requirements may be increased, possibly substantially.
I trust the actuaries explained to you how you are committing to maintaining high contribution levels for several years (otherwise you risk seeing the IRS disqualify your plan).
Here's a 2016 guide from from Schwab with an example of someone age 55, planning to retire at age 65. (See p.3). Schwab also uses a low projected ROR (here, 3.98%). Note that because you're younger (presumably with more years to retirement), all else being equal, you'd be able to contribute less than the $166K shown. So I'm curious where the $250K figure you gave came from.
https://www.schwab.com/public/file/P-1604569/SLS25840-05-ST.pdf

Hello,
I am self employed, and 50 years old. My business started picking up in the last two years and this year I will have significant cash flow which I want to put in a pre-tax account. I have heard that a defined benefit plan can help me contribute as much as $250,000 per year.
However, during the discussion with the actuarial firm, I was told that the investment return of the plan should be low or kept low. This prevents over funding the plan and sizable contributions can be made each year. If the investment returns are high, the size of the contributions can decrease.
Has anyone in this forum encountered this situation before? I am not sure it is wise to invest money at 3-5% growth rate when the market returns are higher.
Thanks.

PRSNX listed ytd returns as +5.1%? ... M* website is a disaster, but their statistic shows PRSNX up ytd by over 7%. What gives? When I log into my own acct, PRSNX shows up ytd +7.37%.

This article presents some thoughts from fund managers together with some investment ideas. A few excerpts:

“It’s hard for me to buy a utility company when I could buy a company like Home Depot,”
With negative bond yields in Japan and Europe, the Fed will likely keep U.S. interest rates low for a “very long time,”
“The low yields in the fixed-income market are making you take risk elsewhere.”
As a result, Clott has been reducing his exposure to Treasuries and adding shares of companies like AT&T Inc (T.N)
Michael Barclay, a portfolio manager of the $15.1 billion Columbia Dividend Income fund, said he is focusing on picking up income in the technology sector because its strong growth rates will allow companies to increase their dividend payments over time.

https://reuters.com/article/us-usa-stocks-weekahead/wall-street-week-ahead-prospect-of-fed-cut-pushing-dividend-investors-into-tech-energy-idUSKCN1UE19T

The fund on the top of the list - VSTSX - has a $5billion minimum (!).

"compared to the flagship bond fund of the others." NEFZX? AUM $7.3B. LSBDX, $10.9B.
"'Dan Fuss pioneered the benchmark-agnostic, multisector approach to fixed-income that has defined the firm’s flagship Loomis Sayles Bond (LSBDX) since 1991." ... said Alfonzo Bruno, Manager Research Analyst at Morningstar.“
https://www.loomissayles.com/internet/InternetData.nsf/0/2F18CD9C1404261D852583F500624095/$FILE/MSTARAWARDSFORINVESTINGEXCELLENCE.pdf
FWIW, over the past five years (7/21/14 to 7/19/19) even NEFZX has outpaced EVABX, 9.21% annualized vs. 9.10%. LSBDX did better, at 11.32%. (It's still possible to coax this info out of M*, though not as easy as before.
As far as beating other funds for the first quarter of 2016 (one quarter, really?), I don't need M* to remind me that Gaffney went swinging for the fences. She was holding even more non-bond securities than LSBDX. For a short time it worked, until it didn't.
M*'s comments on her style: Concentrated bets on commodities have made for a wild ride.... The team ... often chooses to simultaneously invest in several correlated groups of assets .... As most commodity-related fare sold off in 2015, for example, the fund had nearly 20% [equity/bond] exposure ... in addition to 15% of its currency exposure in commodity-related currencies.... This explains the fund’s last place finish within the multisector bond Morningstar Category that year, when it trailed ... by 15 percentage points. ... the same profile ignited the fund’s strong subsequent rally."

Hi @Ted, Let's look at this for a rolling 5 year time span against some other multi sector bond funds. The three I selected, which I own, were PONAX, LBNDX & JGIAX. EVBAX came in a distant fourth and just behind Fuss (and team) with their fund NEFZX which I also own. It will be interesting to see were she lights. Needless to say, I'm not that impressed as EVBAX was once a highly touted flagship bond fund for Eaton Vance and when compared to the flagship bond fund of the others it comes up short. At one time, I was invested in EVBAX after Gaffney took charge and decided, about a year after she came, to move my EVBAX money into LBNDX making it my largest fixed income holding. And, I'm now glad I did. PONAX and JGIAX are funds that I have added to my income sleeve within the past twelve months, or so, as I continue to build an enhance my income sleeve.

@MikeM: Back in early 2016 she was beating the boys including Fuss, Gross, Hasenstab, Gundlach, Ivascyn.
Regards,
Ted
First Quarter 2016:
Gaffney: EVBAX 4.24%
Fuss: LSBRX 2.73%
Gross: JUCAX 2.18%
Gundlach: DBLTX 1.75%
Ivascyn: PIMIX 1.74%
Hasenstab TPINX -(0.14)%

Sold out of my position in June for the above reasons. Too much risk for the payout. Purchased my state muni bond fund which pays a distribution rate of 2.83% at my tax level with a duration of 5 years. Sleep much better now.

I was a shareholder of more than one Bridgeway fund, including BRUSX, but performance has really disappointed. It has been a M* bottom quartile fund for 6 of the past 10 years and for BRAGX, it's 5 out of 10 years as a caboose. While they may have some value funds, BRUSX, BRAGX, and the former Micro Cap fund are/were all growth vehicles. Bridgeway checks a lot of boxes I like; they are small, shareholder friendly, quite transparent, and they do a lot for charity. Unfortunately, their numbers don't make the grade.

https://www.sec.gov/Archives/edgar/data/856119/000085611919000019/fvitp10719.htm
497 1 fvitp10719.htm FVIT P1 07/19
FVIT P1 07/19
SUPPLEMENT DATED JULY 19, 2019
TO THE PROSPECTUS DATED MARCH 1, 2019
OF FRANKLIN VALUE INVESTORS TRUST
(Franklin MicroCap Value Fund)
Effective July 19, 2019, the prospectus is amended as follows:
I. The following replaces the first paragraph of the “Fund Summaries – Franklin MicroCap Value Fund” section of the prospectus:
Effective on or about September 19, 2019 (the “Re-Opening Date”), the Fund will re-open to new investors. Through the date before the Re-Opening Date, the Fund is closed to new investors, except certain Funds of Funds of Franklin Fund Allocator Series and new participants in employer sponsored retirement plans invested in the Fund as of February 19, 2013. The Franklin MicroCap Value Fund reserves the right to modify this policy at any time. For more information, please turn to "Fund Details - Franklin MicroCap Value Fund" beginning on page 26 of this Prospectus.
II. The following replaces the “Portfolio Manager” section in the “Fund Summaries – Franklin MicroCap Value Fund” section of the prospectus:
Portfolio Managers
Bruce C. Baughman, CPA
Portfolio Manager of Franklin Mutual and portfolio manager of the Fund since inception (1995).
Oliver Wong, CFA
Portfolio Manager of Franklin Mutual and portfolio manager of the Fund since July 2019.
Bruce C. Baughman will be retiring on December 31, 2019. Effective December 31, 2019, it is anticipated that he will no longer be a portfolio manager of the Franklin MicroCap Value Fund, and Mr. Oliver Wong will become the sole portfolio manager.
III. The following replaces the first paragraph in the “Fund Details – Franklin MicroCap Value Fund” section of the prospectus:
Effective on or about September 19, 2019 (the “Re-Opening Date”), the Franklin MicroCap Value Fund (MicroCap Value Fund) will re-open to new investors. Through the date before the Re-Opening Date, the MicroCap Value Fund is closed to all new investors, except certain Funds of Funds of Franklin Fund Allocator Series. If you are an existing investor in the MicroCap Value Fund, you can continue to invest through exchanges and additional purchases, including purchases made through reinvestment of dividends or capital gains distributions. Employer sponsored retirement plans invested in the MicroCap Value Fund as of February 19, 2013 may open new accounts in the MicroCap Value Fund and invest on behalf of new participants in those retirement plans. Re-registration of accounts held by existing investors, if required for legal transfer or administrative reasons, will be allowed. The MicroCap Value Fund reserves the right to modify this policy at any time.
IV. The following replaces the ““Fund Details – Management – Bruce C. Baughman” section of the prospectus:
Bruce C. Baughman, CPA Portfolio Manager of Franklin Mutual
1
Mr. Baughman has been a lead portfolio manager of the MicroCap Value Fund since inception. He joined Franklin Templeton Investments in 1988.
Oliver Wong, CFA Portfolio Manager of Franklin Mutual
Mr. Wong has been a lead portfolio manager of the MicroCap Value Fund since July 2019. He joined Franklin Templeton Investments in 2012.
V. The following replaces the “Fund Details – Management – MicroCap Value Fund” section of the prospectus:
MicroCap Value Fund
Bruce C. Baughman and Oliver Wong. As co-lead portfolio managers, Messrs. Baughman and Wong are jointly and primarily responsible for the investments of the Fund. They have equal authority over all aspects of the Fund's investment portfolio, including but not limited to, purchases and sales of individual securities, portfolio risk assessment, and the management of daily cash balances in accordance with anticipated investment management requirements. The degree to which each portfolio manager may perform these functions, and the nature of these functions, may change from time to time.
Bruce C. Baughman will be retiring on December 31, 2019. Effective December 31, 2019, it is anticipated that he will no longer be a portfolio manager of the Franklin MicroCap Value Fund, and Mr. Oliver Wong will become the sole portfolio manager.
Please keep this supplement with your prospectus for future reference.
2

FWIW
Article summery:
suggested investments, Emerging Markets on the equity side and corporate and mortgage backed securities for fixed income.
Trends for investors in the second half of the year:
Fed policy will be dovish.
GDP growth is slowing.
The S&P 500 is hitting all-time highs.
Value stocks may outperform.
Emerging markets will make a comeback.
The deficit will rise.
U.S. Treasurys will lag.

Oh really? I haven't look at it in a while. That's good to know -- thanks!

BRLIX is equally weighted only through the end of this month. As the prospectus now says: "This 'roughly equally weighted' Index contrasts with most other 'market-cap weighted' indexes, which give more weight to the stocks that have appreciated the most in price."
After July, equal weighting will be just a starting point. The supplement states: "Each stock is roughly equally weighted in the Fund and additional weight is periodically given to the stocks with the greatest decline in price."
This goes beyond adding shares for companies that have declined in price (to equalize the weight); it may overweight "undervalued" companies.
BTW, the high ER for BRUSX comes from the 0.85% cost of "acquired funds". I don't see any funds that it holds, but I didn't look carefully for business development companies.

BRLIX is equally weighted only through the end of this month. As the prospectus now says: "This 'roughly equally weighted' Index contrasts with most other 'market-cap weighted' indexes, which give more weight to the stocks that have appreciated the most in price."
After July, equal weighting will be just a starting point. The supplement states: "Each stock is roughly equally weighted in the Fund and additional weight is periodically given to the stocks with the greatest decline in price."
This goes beyond adding shares for companies that have declined in price (to equalize the weight); it may overweight "undervalued" companies.
BTW, the high ER for BRUSX comes from the 0.85% cost of "acquired funds". I don't see any funds that it holds, but I didn't look carefully for business development companies.