MRLOX / MALOX all retirement in 1 fund - question for passive investor. Need advice. MALOX is a solid world allocation fund. For over two decades (until about a decade ago), it paced PRWCX (a domestic allocation fund) nicely. It returned less over the past decade, likely because international investments generally returned less. For example, VGTSX returned 5.10% over the past decade (ending Feb 3) vs. VTSMX's 13.55%.
Depending on how long he intends to continue working, its roughly 65/35 allocation could be quite reasonable. So a first question is why consider a 100/0 allocation going forward as he edges toward retirement? (Your aversion to target date funds reinforces the impression that you prefer equity funds.) After that one could get into global vs. domestic.
There's also a question of mechanics. Generally in-service withdrawals of 401(k)s are not allowed until one is 59½; even then only if the plan allows it. So that part of his retirement assets would seem to have limited options until he's nearly 60. It likely could not be turned over to a brokerage to manage. This also means that we can only talk in generalities (types of funds).
I also notice that he's invested in a a fund with a 0.50% 12b-1 fee. That is considered a load and adds up to way more than 5% or so that one might have paid instead with a front end load. (It charges 0.34%/year more than the A shares that are generally available NTF.) This suggests that most or all of his 401(k) investment options come with high fees. Outside of suggesting doing a rollover into cheaper funds as soon as he is able, I don't know what else could be done about this.
MRLOX / MALOX all retirement in 1 fund - question for passive investor. Need advice. Ok, so I have a close friend and he’s in his 50’s. We were discussing investing in general for the first time today. He doesn’t know much about investing. It turns out his entire 401k or retirement is invested in one fund - MRLOX. He’s not even sure how he ended up in the fund but he’s there.
So I looked it up and researched it a bit out of genuine concern but knowing I will never give advice without also asking him to run it by a fiduciary ... so in my quick analysis it seems like he’s better off in a S&P 500 Index or Total Market Index. It’s not that MRLOX is a terrible fund but it hasn’t beaten the 500 Index consistently. It’s been fine recently.
What would you recommend? A 500 Index or total market index, a target fund (uggh), stay with MRLOX or pay a brokerage a 1% fee to invest for him (not that he would go for that)... Again, any recommendation will be followed with -run it by an investing professional or fiduciary. Just wanted the community’s opinion. Is there a better option for him? Oh and he’s asking for my advice. It’s not unsolicited.
Long M* Interview with PRWCX's David Giroux Well worth spending an hour to listen to the podcast or skim the transcript. (This longtime PRWCX holder remains very pleased and comfortable with Giroux's investing philosophies & performance.)
David Giroux: 'What Are the Market Inefficiencies We Can Exploit?'
A two-time Morningstar Fund Manager of the Year winner on the benefits of concentration, the attractions of utilities and BB bonds, and his team's focus on "return on time spent."
https://www.morningstar.com/podcasts/the-long-view/95
Baron Funds Annual Report https://www.baronfunds.com/sites/default/files/Baron-Funds-Quarterly-Report-12.31.20.pdfThe above report includes a fair amount of self-promotion from Ron Baron, but it is hard to argue with the numbers his funds have put up over the long and short hauls. My only experience with the company has been via BGAFX, the global all-cap growth entry. While I have not compared Baron’s apples with Morgan Stanley’s apples in a systematic manner, my initial conclusion is that both outfits have enviable records in growth mutual funds. Baron has even made a pile of dough for shareholders in Real Estate. I know that MS has its fans on MFO (I own a big slice of MGGPX) and the comment has been made that the MS growth funds deserve more attention. The same might be said for Baron. TSLA is a major holding in several of the funds and especially in the Partners Fund where it’s the 47% elephant in the living room. Some of the Baron funds were previously partnerships (hedge funds?) whose performance is included in the tabulations.
One Baron vehicle I just learned about is the WealthBuilder Fund (BWBIX/BWBFX), a fund of Baron funds that is said to charge no ER above and beyond the ERs of the constituents. This fund dates to 2017 and has profited handsomely from the mania for growth funds, but it has outshone all comers in the 8
5% and up allocation category. It could be a good choice for child or younger investor with a long horizon.
Checking what Bond Fund to own in IRA I own WATFX only in IRA. Desire Income, Diversity and don't own any other bond funds. I am 87 with 85 year old wife. Now renting in Four Seasons Apt in Beachwood, Ohio. Have Schwab accounts. Only have one taxable joint account, rest IRA and Roth.
Why Are Republican Presidents So Bad for the Economy? NY Times opinion piece By David Leonhardt
G.D.P., jobs and other indicators have all risen faster under Democrats for nearly the past century.
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