Hello folks. I recently consolidated several retirement and non-retirement accounts for both myself and my wife into a new joint Fidelity account. Now that we have everything under one roof, I am considering making some major changes (almost starting over) in order to get things right and build a thoughtful portfolio for the yrs ahead. I have some good ideas of what I'd like to do based on my own investment experience, David's writings and the great dialogue on this discussion board. Nonetheless, I'd love to hear how some of you would construct a new retirement portfolio based on a hypothetical $100,000. We are 35 yrs old. Assuming a clean slate and a 20 yr horizon, how would you allocate this money? Many thanks in advance!
Comments
http://seekingalpha.com/article/1083851-dave-van-knapp-positions-for-2013-tuning-out-market-noise-with-dividend-growth-investing?source=email_investing_income&ifp=0
or check out the M* Dividend Investor newsletter authored by Josh Peters.
You don't have to do it all at once but I do believe it's worth your consideration.
Regards,
Ted
http://www.aaii.com/asset-allocation#aggressive
The three accounts are actually discreet, but it makes for a nice reporting situation if they are all available on one page. Not sure about Fido, but American also "combines" the accounting to the extent of giving a total value sum for all of the accounts. (In the case of American, this "combined total" is also used to calculate the purchase load, if any, and makes it a lot easier to reach the "no-load" level. Of course this is not a factor at Fido.)
For older folks this kind of setup also makes for an easy required distribution scheme, as a certain % is automatically transferred once annually from each fund in each IRA account to the common non-sheltered mmkt account, from where it can be redeployed if so desired. All-in-all, a neat and efficient way to keep track of stuff.
A good New Year to you, sir!
Wishing you well!
OJ
Are all accounts setup with the brokerage feature, which will allow you to invest in funds outside of Fido's funds choices; if you so choose?
Regards,
Catch
http://www.fundadvice.com/images/stories/fundadvice_images/finetuning2010b.pdf
Finding your comfort (risk) zone is important as market declines do eventually occur. The important thing you should be able to stay calm. It is harder than you think in good times.
Next read the following to understand diversification:
http://www.merriman.com/PDFs/UltimateBuyAndHold.pdf
Once you determine the risk exposure and asset styles to invest, we can recommend funds to fill positions from those available at your brokerage (which one?)
Domestic: RWGFX YAFFX AKREX FLPSX BCSIX SSSFX
International: FIGFX GPIOX MAPIX
Global: GPGOX ARTHX ARTRX
Actually you can consider FLPSX as kind of global as well. 1/3 of the portfolio is international.
First, I don't disagree with Investor's choices below, from his post to you. This is a nice spread.
Domestic: RWGFX YAFFX AKREX FLPSX BCSIX SSSFX
International: FIGFX GPIOX MAPIX
Global: GPGOX ARTHX ARTRX
NOTE: the below is with the presumption that aggressive may be for you; 85% equity and the remainder of other.
As to FLPSX: a few more notes. This equity fund = 65% U.S. exposure, with the remainder foreign, with the 3 largest holding areas of consumer discretionary at 27%, IT at 18% and healthcare at 11%; which consists of Megacap at 11%, very large cap at 3%, large cap at 11%, midcap at 42% and small cap at 33%. A most decent fund within Fido.
Domestic:
FLPSX, per above
FCNTX, (longtime proven management, somewhat defensive (although a very large fund) and middle of the road growth
Specialized sectors
FIREX, a more aggressive and int'. real estate fund
FRIFX, U.S. oriented equity/bond real estate fund.....a steady provider fund at this time
FSHOX, domestic play on construction and housing, with a mix of suppliers, builders and some REITs
International:
FTIEX, Total Int'l. Equity. Fidelity's most diversified int'l. equity fund in my opinion, with 8% U.S. exposure, 92% foreign and has about a 2% yield.
- developed markets growth and value= 65%
- " " small cap = 12%
- emerging markets = 23%
- mega cap=29%,large cap=31%, midcap=27%, small cap=12%
- financials=22%, con.staples=14%, industrials=13%, con. discretionary=10%
FEDDX, EM Discovery. Fido's look towards EM consumer markets in my opinion, and via the mid and small cap area (95%), at this time. Asia is currently about 40% of the exposure, but the fund is invested everywhere.
Bonds: for whatever you may choose to not have in equity. These include exposure to developed and emerging market equity and bonds.
-FNMIX, dollar denominated EM bonds exposure
-FTEMX, " " EM equity and bond
-FAGIX, Fido's highest risk junk bond fund with a solid long term record; and generally (during normal times
-SPHIX, less aggressive than FAGIX; but still in the high yield bond area, with a decent long term record
-PAUDX, a Pimco fund of funds, with a respected manager
-LSBRX, global bonds of all flavors and generally 15-20% equity exposure, too. Status on this fund for us, which we hold; would be the retirement of Dan Fuss, the long time, 79 year old manager.
Outside of Fido, I would look at any of Pimco's funds, keeping in mind that I consider their funds to be using what is likely the "new normal" for many equity and bond funds, being the steroid tools of options, futures, derivatives and all other known tools in an attempt to manage a fund's direction and stablity. I do not have a problem with this; but that those who choose any fund should be aware of potential added risk, using such tools, in the hands of the unskilled. ALSO, including non-Fido funds from Investor's list.
This is a nice tool to use at Fido Fidelity compare; and one doesn't need an acct. to use this area.
This will already be set with one fund, PAUDX. You may overwrite this ticker with another and add others for a quick and dirty scroll down list. For details about any fund, after entering a ticker symbol, click "GO". Once the fund name is loaded (blue lettering), you may then click onto the fund name to obtain more details about a fund, including prospectus info.
Pimco mutual funds list. This page may load showing "A" shares. Change the "FILTER" to "D" shares in the drop down menu to the left side of the page. Clicking upon a ticker symbol will take you to a most inclusive list of data to select about a particular fund. Lots to read, if you choose.
Okay, this is all for now. If something else pops up this weekend, I will add a separate post at this thread.
Take care and good fortune with the homework, eh?
Regards,
Catch
You are welcome. You must also be aware that this is just my 2 cents worth and so the value is more related to your investigation of the funds that may be suitable for your house's needs. There are surely many other suitable funds among the 1,000's. Our house is in the process of evaluating some other investment directions, too; and your query forced me to do some needed investigation after being away for a few weeks.
Also, that by reading what I wrote that you have electronically signed my hold harmless agreement regarding investment outcomes.
The very best, is that you will be able to further query as you dig through the funds for added input from the fine group of folks here.
Take care,
Catch