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@larryB, VPMAX is aggressive growth, or growth with some conviction. So, it may be frustrating at times, but if she can mix it with another LC-growth/blend, it would be fine LT.
BTW, Amy Arnott's original 12/5/22 article is still on the M* website. But it had the usual culprits and didn't seem controversial.
https://www.morningstar.com/people/amy-c-arnott?page=2
But this 1/30/24 update, that was apparently withdrawn, had a…
Linked worked BEFORE, but doesn't now.
On a web search, it appears that M* has pulled the article. It focused on $amounts, not percentages. So, it had US Agg Bond Fund (total bond market) on the same list as the wild ARKK. M* probably received com…
Move away from China has led to onshoring, near-shoring (Canada, Mexico) and friend-shoring (Vietnam, Thailand, Malaysia, India, etc). The global supply-chain is big and complicated.
Lots of US federal incentives for infrastructure, manufacturing …
After the 2021 disaster (controversial FDA approval; Biogen's greed that led Medicare to an unprecedented refusal), Biogen/BIIB has a new CEO, and another Alzheimer's drug approved.
https://stockcharts.com/h-sc/ui?s=BIIB&p=D&yr=3&mn=0&am…
Notes by YBB
Rates were maintained - fed funds 5.25-5.50%, bank reserve rate 5.4%, discount rate 5.5%. Rates have peaked, but cuts may only be later in 2024.
QT continues at -$60 billion/mo for Treasuries, -$35 billion/mo for MBS; total QT -$95 b…
They are similar in style, but also quite different:
PONAX / PIMIX - OEF; multisector
PDI - Old-style perpetual CEF; leveraged
PDO, PAXS - Newer term-structure CEFs with finite lives; leveraged
TODAY, we will know little better about what the Fed / FOMC want to do in future. Watch here at 2:30 PM Eastern, https://www.youtube.com/@federalreserve
Pimco has a history in distressed credit that, in fact, goes back to Bill Gross' time.
During the GFC 2008-09, Pimco loaded on distressed residential MBS under the initiative of a guy names Ivascyn - he hired 200+ mortgage specialists to go over m…
Look at equal-weight funds - SP500 RSP, tech RSPT, energy RSPG, Nasdaq 100 QQEW, etc.
There are equal-weight versions of most sector ETFs.
https://ybbpersonalfinance.proboards.com/post/1097/thread
I also like ultra-ST FCNVX. Recently, its higher ER class was eliminated and its net ER now is 25 bps. It may be the only Fido mutual fund, besides Fido m-mkt funds, without any trading restrictions.
MY ST mix at Fido and elsewhere is T-Bills (no l…
Option-income funds have been around for a long time, GATEX, 1977- ; GCPAX, 2014- . There have been several others.
They didn't catch on until JPM put its marketing muscle behind its now humongous ETF JEPI, 2020- & its large variant JEPQ, 2022-…
Full para by JR provides context for that statement on funds with high derivative-income:
"Happily, the statistic of total return measures the entire package. It accounts not only for the moneys that derivative-income funds receive for surrendering…
From RiverPark Annual Report, 9/30/23, pg 44,
"Cash and Cash Equivalents — Cash equivalents include short-term, highly liquid investments with a maturity date at time of purchase of three months or less."
Note my underlined "at time of purchase". …
Another issue at Schwab is that a scheduled cash transfer is moved AHEAD to finish on the stated date, and/or if the stated date is a holiday. This may ruin well-intended transfer plans.
https://www.mutualfundobserver.com/discuss/discussion/comment/…
@msf, thanks for the 2017 link. I also found a 2022 link that verifies that the current M* practice is 92 days or less maturity for cash. M* forgot to send me the memo (-:)
https://pdfhost.io/v/lw2RlJt~L_MStar_Classification_Fixed_Income_022022
Cash, declared an asset, is RPHIX 33%, RSIIX 23%. (M* Cash is anything under 12-mo maturity (some use only under 3m maturity)).
But cash is paying good now. It may be more of a drag in equity funds, but less so for bond funds.
While the Treasury yield-curve is weird. It has an unusual dip in the belly. It seems that an inverted yield-curve is trying to normalize (to up-sloping), but the Fed has literally fixed the short end.
https://www.ustreasuryyieldcurve.com/
Harold EVENSKY, the originator of the bucket system, had just 2 buckets - one for short-term money that didn't belong in the market, and another that was in the market for long-term. It just formalized the idea that the money one needed soon didn't …
Schwab SNSXX is fine too in case you are limited to Schwab. SNOXX has the code word "obligation" for Treasury repos.
https://www.schwab.com/money-market-funds
Australian Mcquarie Asset Management acquired Dalaware, Ivy/Waddell & Reed, etc several years ago. It also offers a few ETFs.
Now comes its unified branding.
https://mim.fgsfulfillment.com/download.aspx?sku=PRESS-FORWARD
https://en.wikipedia.…
There are 2 separate issues.
I was commenting on the infeasibility relying only on distributions for meeting RMDs.
But with larger IRA accounts, the RMDs are large, and may be sufficient to meet retirement expenses. Then, there is no worry about …
.....
Funds use the current yield trick to boost current yield by buying premium bonds (at the expense of NAV deterioration), or go for gains by buying discount bonds. While both have the same YTM, the effects on current fund income and taxation are…
@PRESSmUP, relying on distribution for RMDs may be possible early on, but would be impossible later on. Here are the required RMD % (of the yearend balances) at selected ages:
72 3.65%
80 4.95%
85 6.25%
90 8.20%
95 11.23%
100 15.63%
Now, the…
@BaluBalu, %coupon adjusted for current price is NOT YTM (or close to it).
YTM come from IRR or XIRR like Functions in Excel, or P-A-F-i analysis on generic calculators.
Funds use the current yield trick to boost current yield by buying premium b…
Fido credits maturing T-Bills ON the morning of the maturing date, Schwab on the afternoon, Vanguard in the evening or the next morning.
Everything is normal on the day AFTER maturity.
I think that Treasury has until midnight of the maturity date …
Use IRS Direct Pay.
Registration not required for paying. But it is if you want to check other personal info.
It would ask some simple questions based on a recent 1040 to make sure that it's you, so have that handy.
https://www.irs.gov/payments
I cringe when people talk about stocks for all times and talk only about good times. People have to deal with markets they are in. So, these historical data are useful for perspectives.
In the charts above, I tried to add SP500 but couldn't. I loo…
Market has good times and bad times.
Look at how your favorite MA/hybrid did 1/1/1965-12/31/1974 ( VWELX, FPURX, DODBX ).
https://i.ibb.co/XJhn6c4/Screenshot-2024-01-15-06-36-57.png
May be.
Some brokers have T+0 (same day) settlements for in-house m-mkt funds. But I haven't checked this at Schwab. My guess is that if nothing is marginable yet, margin interest would be charged.
Up early? 4:35 AM in CA?
@Derf, my Schwab Profile/Margin page has this:
Looking to downgrade?
To downgrade your current options level, contact us at 888-245-6864.
To remove your margin access, contact us at 877-870-7317.
You should definitely call them.
@Derf, you probably have a margin a/c. May be you filled out related paperwork while opening the account - it's more than just a click, so this cannot be accidental.
Go into your Balance screen and if it shows large available credit or borrowing ca…
If one can live on portfolio income only, great.
But when that isn't enough, and one has to withdraw more than portfolio income on a consistent basis, that can lead to problems from the SOR issues, or if the entire portfolio is drastically changed …
The typical pattern of these annual Roundtables is that Part 1 has lots of macro/big-picture stuff on markets, economy, geopolitics, followed by specific recommendations by only 2-3 panelists. Then, Parts 2 and 3 will have recommendations from the r…
@BaluBalu is alluding to T+1 settlement for OEFs, T+2 settlements for ETFs, CEFs, stocks. Even knowing this, I have made mistakes at Schwab that have cost me 1-day margin interest. In the rush of things, one may just look at website Portfolio/Holdin…
Reg BI is a diluted standard that many brokers & financial advisors can claim they are following. Only the RIAs are obligated to follow fiduciary standard.
Beware of dual-hatted advisors that have both RIA and broker/advisor credentials. There…
