Portfolio changes for retirement I had my 401 set up as you suggest until recently.
The question I asked was:
''Which funds of my 401 choices would you leave money in the next 6 months.''
Got it. You're not asking about portfolio allocation, just fund selection. There's no apparent reason to have significantly different asset allocations five months from now (pre-retirement) and seven months from now (post-retirement).
But the specific funds you have available will change in six months, when you roll over your 40
1k. So you're asking about funds to use now for the next six months given your target allocation.
(If it helps you feel better, you might check to see whether your plan allows
in-service distributions after age 59&frac
12;, assuming you're that old. Then you could just move the money now; end of problem.)
Frankly it won't matter which 40
1k funds you pick. They are all respectable.
Whether you get your chosen large cap domestic equity exposure by using VFINX or a combo of AMRMX and VIGRX won't make a big difference. Whether you take one of these options and add PTTRX for your bond exposure, or use OAKBX for both stocks and bonds won't make a big difference either.
Building on
@MikeM's comment - if you have a stable value fund that is paying as much as an intermediate term bond fund, that might actually be a better choice than PTTRX or OAKBX for bond exposure. Long term (the past year was an anomaly for bonds) that could give you similar returns with less volatility. You could roll over your other assets while leaving money in the stable value fund (if that's what you've got) when you leave.
Portfolio changes for retirement Mike,You are correct the preservation fund is a GIC, earning around 1.7% for the year so far.
Where To Invest $10,000 Right Now In the same laconic style as PK, I wrote: It [public debt] does not create, but amplifies, income inequality."
The findings summary of the paper you cited reads: "The author finds that the composition of public debt is consistently a significant determinant of income inequality: the domestic share of public debt is regressive and significant across all specifications [even controlling for other factors]."
Sounds about the same. What appears to be an earlier (20
11) version of the paper likewise finds evidence that "the domestic share of public debt is associated with higher levels of the Gini coefficient".
Have you read the full paper? I'm disinclined to
rent it for 24 hours (even for $4) when my time is limited.
Right now I'm too busy reading a paper for an urban economics class I'm taking. That paper looks at how income level affects where people live in urban environments. And I've been having out-of-class exchanges with the teacher on different methods of calculating environmental footprints (think sustainable cities).
SEMPX Thank you to all for responding. I am going to consider EIXIX.
Please note most of its outsized YTD returns in EIXIX occurred the first four months of its existence. The past 6 months it has been mediocre at best compared to IOFIX among others. You seem to like the non agencies. You might want to check out DPFNX. It gets no mention but a real steady eddy in the non agency sector. As detailed in the past, I paired it with IOFIX in 20
17 and part of 20
18. Haven’t been in it this year but that may change soon.
Where To Invest $10,000 Right Now Twitter is useful for the lay readers of many researchers since there is almost always elaborated, non-laconic, material to read elsewhere.
This, about gov debts and income inequality, looks pertinent, brought to my attention by a family member:
https://www.emerald.com/insight/content/doi/10.1108/JES-01-2014-0015/full/html(Saez and others are clear about other, non-gov debt: 'This explosion in debt means effectively that the bottom 90% has been saving 0% of their income over the last 30 years.'
So ... in what direction is your own mind made up? What, again, do you yourself advocate?
Where To Invest $10,000 Right Now "
It's not just that with interest rates below growth rates, debt won't snowball."
Regardless of how much debt is added outside of interest? Didn't he say before: "
unless the government runs large primary deficits"? I wish he'd make up his mind.
"
it doesn't reduce the future income of society as a whole"
What about future per capita income? GDP may have a faster growth rate than interest (especially as we approach negative rates), but still not as fast as population growth. Will we all become poorer together? Likely not, as he acknowledges: it creates claims by one part of the population on another part ... This can create some problems." It does not create, but amplifies, income inequality.
"
Emissions will stay in the atmosphere for generations, raising global temperatures all the while."
Some will, like CO₂,
some won't like CH₄. Methane has 2
1x the impact of carbon dioxide, but that impact is front loaded. It is not "raising global temperatures all the while", just long enough to "damage our future ... irrevocably." Persistence is secondary.
There's a reason why I pay no attention to
twitter with its typical laconic tweets.
Portfolio changes for retirement I had my 401 set up as you suggest until recently.
The question I asked was:
''Which funds of my 401 choices would you leave money in the next 6 months.''
Portfolio changes for retirement Say that you like fund A more than fund B in all market environments. If you were starting with $5K, it seems pretty clear that you'd invest that money in A rather than B.
Now say you started with $6K in fund B, and because of market declines it's worth $5K. "Typically I would hold till things came back up."
What's the difference? Whether you have $5K in cash or $5K in fund B, you've got $5K to invest - either put it/leave it in fund B, or invest it/move it to fund A. Many people have a mindset that they don't want to "lock in" a loss. But that $1K loss above is a sunk cost. It's not a question of "recouping" the loss, but where that current $5K would be put to best use.
I agree with Skeet that you would be well off thinking about your long term asset allocation, setting up your portfolio that way, and when you roll over your account, to maintain your target allocation. Though you might use different and possibly better funds.
Fisher Investments Launches Diversity Task Force Another spin on sin investments. Some people would claim that it makes no difference if Fisher is a misogynist, a racist or even a white supremacist, if he is a brilliant investor.
This is a little different than a similar person running a company you want to invest in.
Behavior and comments like this usually do hurt the performance of a company ( ie UBER WEWORK) but I am not sure it will make a lot of difference to Fisher's client's returns, as most of them are separate accounts, as I understand his investment process. Consequently if he looses 10% of AUM in a week it will have less of an impact on the stocks in other's portfolios as only those accounts will be liquidated. If FIsher holds a large % of some individual position it might matter.
I have never wanted to invest with someone whose ego is so domineering and who presents what seem to be schemes that no one else has thought of. Nor have I wanted to contribute, even in a small way, to the self aggrandizement and massive fortune of such an egotist.
But that is my personal opinion and some other people who have sent him 1000 Billion Dollars obviously feel different.
It would be interesting to see what others think, especially people who have used his firm in the past.
SEMPX I am looking for some punch over my MM funds with minimum risk. I am not too happy with RPHYX and RSIVX.
You might look at the other fund in the Semper stable too: SEMRX/SEMIX. Mostly mortgages, very short duration (0.4), mostly investment grade, current distribution yield ~ 3%, avg. price a shade over par, 5* in M*'s ultrashort bond category.
NAV risk is pretty well contained in the current environment: NAV's varied in a very narrow range (9.88-9.90) since April
15, per Yahoo historic price tables.
Again, it's mostly floating rate, 74% per
the current fact sheet.
Good luck out there -- AJ
P.S. I've been thinking of dumping one of the rate-sensitive funds I own now and partially replacing it with SEMRX next time there's a dip in T rates. I don't think holding a slug of intermediate and long duration is going to be the winner it was for a while there, and if another big rate dive does materialize, it's easy enough to rent exposure thru TLT or IEF.
Ben Carlson & Michael Batnick: Where Have All The Stock Market Wizards Gone?: Video Presentation FYI: Market Wizards by Jack Schwager was first published in
1993. The book profiled some of the world’s top traders, all of whom had enviable long-term track records.
The list included well-known traders and hedge fund managers such as Bruce Kovner, Paul Tudor Jones, Ed Seykota, Michael Steinhardt, William O’Neill, and Richard Dennis. Schwager does a nice job in the book focusing not only on the performance of these traders but also the psychology behind their process.
Schwager went onto write a series of these books detailing other successful traders and investors. The market wizard series became a trader’s bible of sorts.
On this week’s podcast Michael and I discussed why it would be much harder to write such a book today:
Regards,
Ted
https://awealthofcommonsense.com/2019/10/where-have-all-the-stock-market-wizards-gone/
Seafarer Overseas Growth and income manager leaving
Barry Ritholtz's Masters In Business: Guest: Binyamin Appelbaum, NYT: Monetary Policy Podcast FYI: Bloomberg Opinion columnist Barry Ritholtz interviews Binyamin Appelbaum, the lead business and economics writer on the New York Times editorial board. He was previously a Washington correspondent for the Times, covering the Federal Reserve and other aspects of economic policy. His book “The Economists’ Hour: False Prophets, Free Markets and the Fracture of Society” was released in August.
Regards,
Ted
https://www.bloomberg.com/news/audio/2019-10-11/binyamin-appelbaum-discusses-monetary-policy-podcast
