Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
You can't be serious??? Unless I am missing something here, this blankity blank hypothetical make believe timer has significantly underperformed the S&P over the past 1, 2, 3, 4, 5, and 6 years!!!!!. Edit: That's what I call a trend.
I have always been a the less diversification the better kind of guy and my entire liquid net worth (taxable and non-taxable) is in NHMRX. ( A strategy I can no longer employ in equity funds, only bond funds) Who says you aren't suppose to put muni…
I have watched pretty much all my friends' parents pass away over the past many years (except thankfully for my aged Mom) and with just about every health problem under the sun. I realize I may be naive here but the only medical expense killers I …
A better way to insure against living too long if you are healthy is to use longevity insurance policies. These are deferred annuities that start to pay out when the buyer is 80 or older. Because of this they are cheaper and pay out much higher rate…
Remember that the 8% for a 71 year old is just the annual payout. It is NOT a rate of return since your heirs lose all of your initial investment at death. If you die in less than 10 years, the annualized rate of return is actually negative. I would…
Mona, I would simply add to OSTIX, a staid, conservative but great steady eddie of a bond fund. AYBDX is barely outperforming OSTIX YTD and I can think of must better in that area. Plus, if junk takes a tumble they will be both sell off in tandem…
I stand by 8%. The largest and highest rated annuity providers are Principal, Pacific Life, American Life, Mutual of Omaha, Integra, and a few more. An immediate fixed annuity for a 71 year old male in my state per $100,000 range from $680 per mon…
At age 71, they are betting on a certain life expectancy and drawing into the principal to pay the higher rate. At 60, I think it was closer to 6%
Exactly! The older you are the higher the rate and all based on life expectancy. I went to a more …
http://www.immediateannuities.com/?gclid=CKicpKez67wCFUJqMgodqEIAmw
Here's the link. Just plug in numbers and age and sex.
Obviously I haven't checked what insurer is offering that rate and their viability. But over 8% doesn't sound too outlan…
Thanks Ted, a timely article for me as I have been wondering why there aren't more discussions here on annuities. I've been thinking when the dreaded RMDs hit me around 70 and 1/2 about going with around 15% of my nest egg in an annuity. Based on …
Whether it be Bill Gross or Jeffrey Gundlach or whoever, these guys have no more clue to where rates are going than the man in the moon. I see Deutsche Bank is now looking at 4% Treasuries in 2014. Of course, at the beginning of 2014 not a bull co…
Fair enough David. Albeit I am an investor only when the position is moving in my favor and a trader otherwise. A timer I am not. But a fellow member here, also a junk afficionado, once sent me some research on mechanizing how I invest/trade junk…
Thanks David. Ok, how about the volatility you would have had to endure to achieve such returns? What's that called, standard deviation? Not a trick question as I am not into research and don't have the answer. My attraction to junk is its trend …
Jerry, just to show how great bonds have been since 1998 vs. stocks through Friday, junk bond fund WHIYX has returned $32,198 vs. $19,472 for VFINX ($10,000 investment)
(Inadvertently sent to cman. Still trying to get use to the new format)
Unless I have read this incorrectly, at Fidelity Funds Network on their NTF (no transaction fee funds) they hit you with a $75 charge for any fund sold within 60 days. That co…
David, short term trading fee for under three months is $17. I've never had a problem not getting a fund I wanted through their broad list of available funds. And at least through my particular Scottrade office, I have found their staff most exc…
Schwab????? A $49.95 short term trading fee on funds held less than 90 days. If I am missing something here please let me know as I have been known to miss things.
Not to step on Mulder420's toes but Fidelity is among the worst. Been there done that. Their short term trading fees were exorbitant and at least many years ago after so many short term trades the fees were increased even more. From my experience …
Reply to @clemg64: My bad, it is pretty much even with the S&P over the past 10 years. I tend to look at everything compared to junk bond funds ala WHIYX where it has lagged considerably over the past 10 years. But then so has the S&P lag…
Reply to @bee: I prefer Harry Brown's viewpoint "History isn't a roadmap of the future. Nothing in history (or economics) suggest that it is. In fact, history is riddled more with surprise and change than with repetition........"
Investors would…
Reply to @mikes425: Mike, you pretty much said it all when you said you began questioning a few years of lackluster performance via your bond funds. Many bond funds have had stellar returns the past few years. For instance, in places like junk…
Lat month Mike listed his bond funds, 16 in all. I can't imagine any advisor putting a client in that many bond funds and in such inconsequential amounts. Apparently his equity funds are numerous and in small amounts also. Not sure what the answer…
My RIA stories. Back in 1999, my friend and his wife (in their early 60s then) put all their retirment monies in several tech funds. Their advisor was well known in the local community - a mid size western town. She was always being quoted in the…
Reply to @Mark: I've had some "smart luck" in my days but sometimes I think the best luck I ever had was plain old "dumb" luck. Back in the early to mid 90s I was banned (kicked out) by Vanguard and T Rowe Price where I had accounts. It was for …
I've never been a fan of inflation adjusted returns. And I have never been a fan of anything related to gold. Gold hit $850 an ounce in 1980 with the Dow what, somewhere around 800 to 1000? Regardless though of my biases, I prefer to stick with …
Reply to @cman: >>> What you and I both will probably never understand are the people that spend an awful lot of time in fund picking to add to their collection than spend that same time more productively in asset allocation that makes a m…
I will never understand the long term buy and hold mindset in the major market indexes. The 15 year returns referenced for the S&P and AGG didn't look right to me. So I checked the returns through yesterday (the article was through 12/31/13) …
Reply to @Ted: Yes, very aware and my worry is once you expire the powers to be will rename this board AMFO seeing that alternatives are such the rage here. So take care of your health.
Let's see, a 4% annualized return over the past five years. But they are smart because they achieved those super low returns with sophisticated alternative strategies?
Reply to @Vert: This is neither here nor there. But being as I have always thought corporate junk bonds have always been the most underappreciated asset class out there........
Compared to AUXFX and VFINX above for the same 10 year time period m…
Reply to @Ted: Thanks Ted, maybe I shouldn't have deleted my post above. You are much more succinct! A 2.57.................% return per annum. And my idea of a disaster.
Sentiment nailed this recent decline. As previously posted (1/11/14) bullish optimism was at historic extremes in many sentiment indicators while others were at extremes not seen in many a moon. And "unless it is different this time ...... a cor…
Reply to @Charles: You know since we talk offline at times I am not rubbing it in. And if emerging markets ever show any positive momentum I may be all over it and a member in good standing of Groupthinkville. Albeit, I would probably first look …
