* For those who are interested in investing in a Traditional IRA, that is where the majority of my investment assets are located. I try to use a bit more risky, and higher TR options than in my taxable account. However, I am very conservative, focused on preservation of principal, and using funds that will have a good chance at recouping my RMD distribution each year. In 2019, we had a very good market, and I was able to recoup my RMD, plus increase my overall IRA investment total by a healthy amount. I tend to use a large number of multisector bond oefs in my IRA. I have categorized multisector bond oefs that I follow in the following manner:
Conservative Multisector bond oefs: ANGIX is one of the more conservative lower risk multisector bond fund, and has been around for many years. VCFAX/VCFIX is probably my favorite fund, and has had a solid but shorter history than some other funds. IISIX/ISIAX is actually a nontraditional bond oef, but I consider it a very low risk multisector bond oef. I also include PIMIX/PONAX in this conservative category, have held it for many years, but it has become a bit more inconsistent in recent years, as it has had to branch out into more risky HY and EM bond categories, to help deal with huge AUM--it use to be a predominantly mortgage oriented fund with an emphasis on nonagency mortgages, but not so much anymore.
More risky but attractive multisector bond oefs: PUCZX is one of the more interesting funds, with a very attractive total return history--it use derivatives heavily and has a little higher SD than the more conservative bond oefs. JMSIX/JGIAX is also an interesting fund, highly recommended at Schwab because you can get the Institutional share class very cheaply--its performance history is a bit inconsistent, but it has been doing well this past year. JMUIX/JMUTX is also a very interesting fund, with a great TR history, and a very strong 2019--it has more appeal to me than PUCZX and JMSIX because it appears a bit less risky. PTIAX is a barbell type fund, focusing on longer term Munis and Nonagency mortgages--it has some inconsistency in my opinion, probably because of its barbell holdings. PTIAX pays a nice yield. IOFIX is a multisector bond fund, that is relatively new, and has phenomenal TR history, but it focuses primarily on one risky mortgage category, so I consider it more risky but very tempting.
Not sure what others are doing in this category, but I am "considering" stepping up my risk a little, but not considering any major changes in my overall very conservative holdings. I have this love/hate relationship with PIMIX, which I hold in a small portfolio percentage, and I am trying to determine whether I want to increase my investment in this fund, or possibly add a new fund I don't currently hold like JMUTX.
Restrictions on Exchanges: OREAX, OUSGX, OQGAX? “At meetings held December 9-11, 2019, the Board of Trustees of Invesco Gold & Precious Metals Fund (the “Target Fund”), a series portfolio of AIM Sector Funds (Invesco Sector Funds), unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Target Fund would transfer all or substantially all of its assets and liabilities to Invesco Oppenheimer Gold & Special Minerals Fund (the “Acquiring Fund”), a series portfolio of AIM Sector Funds (Invesco Sector Funds), in exchange for shares of the Acquiring Fund that would be distributed to Target Fund shareholders.”Thanks to
@msf and
@TheShadow. Looks like one of Oppenheimer’s better funds, OUSGX, is headed for the chopping block (sort of). The only one I really care about at present, OPGSX, appears to be picking up Invesco’s existing precious metals fund’s assets. I didn’t see OREAX mentioned - but it’s treated me well at times in the past. T.Rowe’s TRREX, however, is a suitable substitute.
Thanks for the insights.
FMIJX: magical numbers from Morningstar? According to Morningstar's total return chart for FMIJX, as of 12/31/2019 the fund's 2019 total return was minus 9.46 and the Year to Date return was 17.07. How is this possible? Yesterday was December 31st. Today is Jan 1st, a holiday. How could a fund’s return rise by 26.53% literally overnight? Either there has been an error in the numbers or I am missing something. I have sent a message to Morningstar asking the same question.
Restrictions on Exchanges: OREAX, OUSGX, OQGAX? @msf beat me to the punch (and no offense taken),
A recent SEC filing may shed some light:
https://www.sec.gov/Archives/edgar/data/1112996/000119312519313349/d849009d497k.htmThe reorganizations are expected to be consummated in or around April or May 2020. Upon closing of the reorganizations, shareholders of the Target Fund will receive shares of a class of an Acquiring Fund that are equal in value to the shares of the corresponding class of the corresponding Target Fund that the shareholders held immediately prior to the closing of the reorganization, and the Target Fund will liquidate and cease operations.
A combined Information Statement/Prospectus will be sent to shareholders of each Target Fund which will include a full discussion of the reorganization and the factors the Boards of Trustees considered in approving the Agreement. Shareholders of each Target Fund do not need to approve the reorganization.
It is currently anticipated that the Target Fund will close to new investors approximately two business days prior to the closing date of the reorganization to facilitate a smooth transition of Target Fund shareholders to the Acquiring Fund. All investors who are invested in the Target Fund as of the date on which the Target Fund closes to new investors and remain invested in the Target Fund may continue to make additional investments in their existing accounts and may open new accounts in their name. The Acquiring Fund will remain open for purchase during this period.
The above link was in the "Invesco/Aim Funds name changes & reorganizations (a lot of them too many to identify)" which is now in the Bullpen:
https://www.mutualfundobserver.com/discuss/discussion/54627/invesco-aim-funds-name-changes-reorganizations-a-lot-of-them-too-many-to-identify(See the fifth and eighth links in the hyperlink above)
Restrictions on Exchanges: OREAX, OUSGX, OQGAX? Very likely. These three funds (and many others) are being acquired by other existing funds. In the case of five-star OUSGX, that's being absorbed by three-star STBAX.
With apologies to Shadow, who likely already posted this SEC filing, here's a short (2 page) filing on the acquisitions:
https://www.sec.gov/Archives/edgar/data/105377/000119312519313341/d849009d497.htmIt says that "The reorganizations are expected to be consummated in or around April or May 2020." Also that "It is currently anticipated that the Target [old] Fund will close to new investors approximately two business days prior to the closing date of the reorganization to facilitate a smooth transition."
Maybe they just decided to close off new investments early, especially since it seems that the acquiring funds already exist and are open for business. As you wrote, communications don't seem to be great here. Maybe the notation just means that you should expect the fund to be closed soon. Or maybe the legal beagles just haven't communicated to the tech staff that the restrictions are not to be implemented now but in the future.
* Just my opinion based on what is available at Schwab brokerage--not sure about other brokerages, but here are some of the lower volatility, low risk bond oefs you might consider for your taxable account:
Short Term Investment Grade bond oefs--DBLSX/DLSNX is a very solid, very conservative fund, which I periodically use as a very safe haven option. DHEAX/DHEIX is very similar to DBLSX/DLSNX, but with a bit better TR and yield. FIJEX is a hidden gem short term bond fund, in the institutional class but cheap to buy, but holds lower class investment grade bond oefs that has produced more volatility but higher TR than most short term bond oefs.
Low risk nontraditional bond oefs--MWCRX/MWCIX is one of my favorites and cheap to buy. CUBAX is very similar to MWCRX and cheap to buy. PMZIX/PMZAX is an excellent fund from PIMCO, with a solid TR history, good yield, and PIMCO investment expertise--it is not as tax efficient as some funds buy very conservative. SEMMX/SEMPX is a low volatililty, very consistent TR fund, with higher TR and yield than almost any of the lower volatility funds available--holdings are more in the HY category but excellent management history to control risk with solid TR. IISIX/ISIAX is a great TR fund, very similar to more aggressive multisector bond oefs, but pays a solid yield--not as good tax efficiency as other nontraditional bond oefs.
Short Duration HY bond oefs--ZEOIX is an excellent fund, and institutional class fund, but cheap to buy at Schwab--very consistent and low risk performance history. AAHMX is another excellent fund, with a slightly better TR history. SSTHX is another good fund.
Short Term Muni Bond funds, with emphasis on investment grade bonds: BTMIX is my favorite, but other good funds are VMPAX, and ORSTX.
HY short duration Muni Bond oefs: NVHAX and SDHAX are my favorites and much lower risk than most HY Muni Bond oefs. NVHAX had a significant peak to trough performance in the 2015/2016 meltdown, but since then has been solid as a low risk Muni option.
Best Growth Stock Mutual Funds
Best Growth Stock Mutual Funds Yeah I could go to the SEC for the required reporting but normally a fund company would have links to their own annual reports hosted on their site. I find it odd that it's not the case here. And if what I'm looking for - ie a fund's annual report - is indeed contained in the 'sustainable' report they offer on their site, on principle I refuse to fork over my contact information to access it, and would question their decision to require obtaining marketing information before allowing (prospective) investors to access fund/firm documents most other companies publish 'for free'. They're not catering these funds to so-called accredited investors anyway.
... or maybe I'm being overly grumpy and/or just haven't found the correct link on their site yet.
Best Growth Stock Mutual Funds
You May Need a Different Kind of Financial Professional for Retirement From the AAII Journal, January 2020. Written by Julie Jason.
"For those who are soon to retire or have recently retired, there is an inflection point between receiving a paycheck from an employer and a paycheck from your portfolio. For retirees who rely on their investments for retirement income, it is also one of the riskiest, if not the riskiest, time in an investor’s life. After all, you won’t go back to work for 45 years to recover from mistakes.
What type of financial service is best for the retiree who needs to “live off of” their investments?"
ARTICLE
* dtconroe mentioned 1 possible fund above. It is DBLSX. It is low duration not short term bond. 1 step up in volatility.
I have DLSNX - the class N share with a minimum of $2000 and an SEC yield of around 2.66%. I use it as a cash alternative and have actually found it less volatile than all of my other short term funds - and even ultrashort funds. I highly recommend it.
Best Growth Stock Mutual Funds +1
* dtconroe mentioned 1 possible fund above. It is DBLSX. It is low duration not short term bond. 1 step up in volatility.
Best Growth Stock Mutual Funds There has been a range to around 15%. I’m too lazy and I only allocate 7-8% of my AA. This info is from M* and they are notorious for bad info. I am not so worried about the ER as long as the fund performs. 35% this year.
Why History's Longest Bull Market Is Just Getting Started
529 Account Question In NYS your tax bracket won't be that much lower in retirement - the first dollar of taxable income is taxed at 4%, and it doesn't take much ($23K for couples) to see that go up to 5.25% or even 5.9% (at $28K).
Of course NYS doesn't tax SS, so let's say that you'll be saving around 2% on the difference in rates between now and when you retire. (NY recaptures the deduction by taxing the past contributions when you make nonqualified withdrawals. See IT-20
1 Line 22.)
Assuming that the excess contributions earn a cumulative return of at least 20% over the years, the
10% penalty on the earnings will more than wipe out any savings on the NYS side.
Beyond that, what you've got is essentially a non-deductible IRA. The money goes in post-tax (federal), the earnings are sheltered, and then taxed as ordinary income rather than cap gains/qualified divs when withdrawn.
Post-tax contributions can make sense if you're planning to invest in very tax-inefficient funds, like the
529 Income Portfolio. But if you're planning on investing in something more tax-efficient, I don't think that nondeductible contributions pay off.
Here's another way to ask the question: are there readers who would contribute to a nondeductible IRA if they could not convert it to a Roth? If this is not a winner, and if the
10% penalty consumes any benefit you get from the (temporary) NYS tax deduction, then there's not an obvious benefit in making the excess contributions.
* I am making some year end changes in my taxable portfolio, positioning for 2020. At the end of a calendar year, and the beginning of the next calendar year, I determine which funds I want to continue holding, in what amounts, and choose replacement funds I hope to hold for the entirety of the following calendar year. The 2 funds I am selling are DBLSX and BTMIX. Although I was pleased with their 2019 performance, with their performance exceeding their historical TR averages, I prefer to shift those assets into "slightly riskier" funds, which I believe will improve my TR in my taxable account in 2020. Additionally, I will be taking some RMD distributions from my IRA account, and sending those distributions into my taxable account as well. I expect to deploy those total cash assets into new and existing taxable funds the first week of 2020
