Today I dumped ALL my PRLAX TRP Lat. Am and inserted it into my PREMX TRP EM Bond fund. I was too late to the Latin America party of '09 after the stimulus, but still, I made about 11% or 12% on it (per M*) ---having stopped putting anything into PRLAX for about a year, simply holding it until now.
Official ownership-change paperwork is in process on some PFE Pfizer stock my late aunt held for me in a joint account with my name as Joint Tenant. She gifted us with PFE several years ago, so this is the 2nd traunch, if that's the correct word for it. She worked for Monsanto locally here for 6 million years, her whole adult life. It became Pharmacia, then Pfizer. And the share price did nothing but fall gradually, constantly, from $50 downward---until now it is at $20. So once I own it free and clear, I will dump it for MWHYX Metro West High Yield Bond. I don't want to have all my bond money in just ONE fund (PREMX.)
So I've reduced my mutual fund collection to 6, from 7. And I'm holding PFE stock which until 2 weeks ago, I never knew I had. (God bless her.) And I hold a single, specific bond which will mature in '13, and THAT will go into MWHYX, too. Following the PFE sale and re-insertion, my bond portion of portfolio at that time will be: 36.05%, and that makes me breathe just a bit easier. I still need to grow the bond-slice.
Here's what things look like right now. This is today's snapshot:
1) Foreign Government Bond, denominated in dollars: 5.75% of total holdings
2) MAPIX Matthews Asia Div 35.4%
3) PREMX: 16.3%
4) RYDVX Royce Div. Value: 15.01%
5) PFE: 14%
6) PRSVX TRP Small-cap Value: 9.0%
7) MACSX Matthews Gr. & Inc: 4.27%
(Cash: NIL)
Comments
First, I hope your employment picture begins a new painting.
Second, per Investor's note below; this link and in particular, the first top, link may help clarify some tax info regarding joint tenants.
http://www.google.com/#q=joint+tenancy+tax+implications&hl=en&biw=1215&bih=744&site=webhp&fp=1&bav=on.2,or.r_gc.r_pw.&cad=b
Your portfolio is reshaping; and I am sure the last to ponder anyone's choices; as we all have our own needs.
I only ask as to whether you have considered a broad based "total" return type of bond fund versus the EM bond and the proposed HY bond fund.
I suspect that this house will not venture too far away from some amount of bond funds; but if I can't get a grip on what I think I see for interest rate changes 6-12 months forward, I may be more drawn to the broad based total bond funds, some of which we now have. FSICX could be an example with its mix of holdings of various bond types and hope the managers make the appropriate placements. Aside from the overweight of our bond funds to the HY/HI side (about 40%); our various bond funds mix is indeed one very large total return bond fund of funds, eh?
Just a thought and question.
Take care of you and yours,
Catch
I wasn't going to comment because I don't think you are soliciting portfolio ideas, but have you thought a bit more on portfolio diversification? You just seem to be setting yourself up for success in very similiar investment types, emerging markets and small cap stocks (and now junk bonds!). Maybe long term, this focused grouping will get you higher returns, but you've really set yourself up for a high amount of variability. I'd offer you don't need a ton of funds to diversify. Maybe funds like PRPFX Permanent Portfolio and/or some of the very good balanced funds (FPACX, OAKBX, ect...) could help you diversify and tone down the risk you are exposed to. That would also get you the bond and currency exposure you are looking for. I guess we are all different. I am of the opinion a good manager with investment options and having a solid investment history can make better decisions than I. so a good portion of my 401k is with these go-anywhere diversified type funds.
Okay, I'll shut up now. Again, good luck to you.
Fewer and fewer mutual fund outfits are even dealing with 403b accounts. My first shot was with Royce, and I'm pleased with the two I'm holding: RYDVX and RIVFX. (In '03, my original pick, RYPNX, gained over 70%, and I could only wish I had more money in there at the time.) I could have rolled them over to a Trad. IRA after leaving that position, but decided to let it ride.
Along the way, I've been with AIM and Invesco, but dumped them and transferred the money into Royce.... Between 2008-2011, I was with a different congregation, and began with TRP. So, not every one of their funds looks attractive, just like not every Royce fund looks attractive. And that's a FURTHER limitation. And very shortly, I'll not be contributing into the TRP 403b-- being out of work right now.
The "short version" is that I'm very pleased with my choices---in Trad. IRA, in 403b and in regular taxable account. So I can't bring myself to "take from Peter to give to Paul" in order to give each fund the weighting I OUGHT to give it. In the meantime, the inheritance money falls on me like free money from out of the sky---which is truly what it is--- and unexpected in a good way. I can't do anything about the fact that the inheritance money is in a stinky stock. (Pfizer.)
A more conservative bond fund would certainly be appropriate, next. At the moment, I'm almost afraid to create another Trad. IRA account, wondering if I would need to tap into it too soon, and have to pay a penalty. So I think that after maxing out my Trad. IRA (for once!) this year with the Pfizer money---into MAPIX--- I will invest the rest in a Metro West fund, but make it a normal, taxable thing. (But what about the turnover percentage? Scary!)
Thanks for "listening." -----"Max."
The only question is how much of the stock has its basis adjusted. If the joint ownership is between spouses, then half the stock is adjusted, unless it is held as community property, in which case the entire stock is adjusted. If it is held jointly between two (or more) other people, then whatever is included in the gross estate (Form 706 estate tax) is adjusted; by default this is all the stock, unless you can show that a survivor actually paid for part of the stock. In this particular situation, it seems that the aunt paid for the entire holding, and thus all the shares are adjusted.
Note that none of this is advice; there may be other facts that change the conclusion. It is for information only.
Also, that adjustment of basis may be down, which sounds likely, as the stock was described as being purchased for $50 and now worth less than half that.
For step up in property passed by will, and for property held jointly by spouses (both community property and non-community property), a pretty simple page is:
http://www.paytaxeslater.com/stepup.htm
For the rest of the stuff (gross estate, joint tenant property held by non-spouses), a quick search came up with:
http://nationalparalegal.edu/willsTrustsEstates_Public/FederalWealthTransferTaxes/GrossEstate.asp (See first paragraph under section heading "Jointly held property")