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I already had a position in SYLD. So I'm just adding to it. Here are some links that make the strategy easy for me to understand.@WABAC,
You have been busy!
FWIW, when I learned about XMHQ from you, I sold my FSMEX and bought XMHQ but I know you already own a lot of XMHQ.
Do you mind sharing your thoughts on why you chose SYLD at this time? Thanks
FBCG Top holdings
Top 10 holdings AS OF Dec-31-2023
59.72%
of 159 total
MSFT Microsoft Corp 10.15%
NVDA NVIDIA Corp 9.81%
AAPL Apple Inc 9.63%
AMZN Amazon.com Inc 9.10%
GOOGL Alphabet Inc Class A 6.64%
META Meta Platforms Inc Class A 4.99%
UBER Uber Technologies Inc 2.62%
LLY Eli Lilly and Co 2.34%
NFLX Netflix Inc 2.22%
SNAP Snap Inc Class A 2.21%
Your thorough and thoughtful response is a thing I'm grateful for, @catch22.@Crash , you've not noted:
--- taxable account or Roth IRA ?
Taxable. We intend to put his name as primary, and my wife as the other joint-owner. (She's 19 years younger than me. Like my dear son, she does not "grok" investing at all. But eventually, some things will move beyond my control. Eventually, EVERYTHING will move beyond my control.) A taxable account means no worries about running afoul of the splendid and gorgeous and marvelous IRA rules brought to you by the glorious IRS.
--- If a taxable account, an ETF basically has no short/long taxable annual distributions; with the exception of possible dividends for tax reporting. While traditional mutual funds will have these taxable events every year. There are many very acceptable etf's that a 30 year old should be investing into, and the ER's are generally very low. 30 years old= growth, growth, growth.......ride out the machinations.
I have made an executive decision, myself: no ETFs. I don't like the way they behave, somehow. I've owned and already sold two. No more ETFs.
--- Roth IRA....course, no annual taxation, annual limit for 2023 is $6,500. ANYONE may provide the money to fund the account, as long as the owner 'HE' has taxable income that satisfies the funding limits for the year. We funded our daughter's ROTH when she had income for a given year, starting at age 14. She kept her income for her needs at the time.
My son does not possess an "investing bone" in his body, anywhere. Does not want to even deal with the necessary papers. He's about as organized as his mother. Has no desire to do any investing homework or come up with a plan, or learn the admittedly abstruse, esoteric jargon. I've had some conversations with him about it, trying to simplify and break it all down, avoiding the whacked, specialized terminology. He flatly told me: "All I need is a single fund that I can hold for a long time, and just let it ride."
--- Has your son viewed the Fido site? If so, what is his opinion? If he is comfortable with the site, will he not he be the one maintaining the investments/site when you can not longer perform this function?
No, surely he's not seen the Fido website. He doesn't even know where to begin. Previously, I sent him MAPOX IRA paperwork, and he got entangled in it all and wasn't even sure where to fill out the forms. (I have since told him simply: Just look for the pages with blank spaces that tell you to provide X, Y and Z.) He is NOT dumb, just is the type who prefers to fly by the seat of his pants and eschews sorting, organizing, arranging----- or CLEANING HIS ROOM. LOL.
He will surely not be active in monitoring his mutual fund. Truthfully, I suspect I will be contributing the lion's share of what goes into it. And after getting a dose of Fidelity's website, that mutual fund will not be a Fidelity fund. (I think I've all but decided on RPBAX. He's not even going to CARE which one we use.) He is cobbling together three jobs to make a living. Doing alright for himself, in that regard.
A full world of investment choices with Fidelity.
I provided a number of choices for a young niece and her mother.....
A theme, yes, for a young person in particular; but also suitable in part for an older person, when adjusting some of the holdings positions by percentages. Redundancies with some holdings, yes. But, not a problem.
The above 6 bar chart from Sept. 13, 2016 (inception date limitation)
Using standard charting.
Time frame of niece's investment period chart< (3 years)>
'Course, this time frame includes the 2022 period of 'face slapping' until near the end of October when the equity and bond markets rotated towards a positive direction for performance. Generally, equity and bonds ranged down between -13 and -16% in 2022, including gains that started in October.
Remain curious,
Catch
@BenWP. I'm not educated enough to venture an opinion on hedging, except I wouldn't buy a fund that tried to time when to hop back and forth. I picked the fund because of its showing on mutual fund observer premium.I don't know about regime change. IHDG is the top performer in my taxable account over the last twelve months. It's closely followed by two tech funds and FSMEX. VWIGX is in between the tech and health funds.
In the IRA, GRID, XBI, and FSCSX outperformed IHDG. Due to the price at which I bought XBI, I am still well underwater.
If it wasn't so early in the morning here, I'ld try to come up with some clever twist on regime change, and Keynes observation about how long markets can remain irrational.
I have always figured the point of diversification is to already be there when the market turns in a new direction. If indeed, the market is turning in a new direction, many people will end up paying a premium to join up--like me buying XBI. I was luckier with my timing on the tech funds and GRID.
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