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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.
  • Vanguard May Fire Customers Not Online
    Does this new policy apply to clients enrolled in a 401k at work? My daughter has a Vanguard retirement plan from her employer and she is being kicked out of Wellington and being automatically migrated to a JP Morgan age appropriate TDF unless she opts out. Luckily she still has VPMAX.
    That's just a rotten thing to do.
    Crash Crash in Fund Discussions
  • Vanguard May Fire Customers Not Online
    Does this new policy apply to clients enrolled in a 401k at work? My daughter has a Vanguard retirement plan from her employer and she is being kicked out of Wellington and being automatically migrated to a JP Morgan age appropriate TDF unless she opts out. Luckily she still has VPMAX.
    larryB in Fund Discussions
  • Vanguard PRIMECAP Reopens
    Go with the crowd because the crowd makes self-fulfilling decisions? Lots of people buy because prices go up because lots of people buy?
    By that reasoning, the S&P 500 (TR) should be outperforming the S&P Top 50 (TR), and yet ...
              500       Top 50
    YTD  15.82%  22.62%
    1yr    26.33%  34.10%
    3yr    11.33%  14.84% (annualized)
    5yr    15.35%  18.75% (annualized)
    10yr  12.93%  15.11% (annualized)
    All figures through June 18, 2024. The last (10yr) is a hypothetical number provided by S&P Global, since the launch date of the Top 50 index was Nov 30, 2015.
    https://www.spglobal.com/spdji/en/indices/equity/sp-500-top-50/?currency=USD&returntype=T-#overview
    Yes but how many people invest in the Top 50-ish? Is there any ETF or OEF that has decent volume along those lines? I haven't looked, but I doubt it. (BBLU maybe?) Ergo pretty much everyone buys the index b/c that's what their retirement plans offer.
    (I prefer more concentrated funds myself, fwiw saying.)
    rforno in Fund Discussions
  • WSJ on pensions and PE
    @stillers. Perhaps another universe is oddly phrased, but my financial life would be entirely different if I had a pension check roll in every month. Many decisions would be looked at differently.
    Oh, now I get it!
    And agreed, our collective SS and Pension incomes result in negligible, if any in some years, annual income gap. Makes a world of difference in all of our financial and investment decisions. We played it close to the vest in our first five years of retirement, but have swung for the fences in our last seven. To our credit though, we started planning for our retirements and this very situation on Day 1 of our first professional jobs in 1980. Well, I did at least. The missus got on board a wee bit later!
    stillers stillers in Other Investing
  • WSJ on pensions and PE
    Nice chart in this article:
    https://www.cnn.com/2023/09/07/success/pensions-retirement-savings-explained/index.html
    https://www.investopedia.com/articles/retirement/06/demiseofdbplan.asp#:~:text=Key Takeaways,to manage than pension plans.
    https://www.the-ifw.com/retirement/why-did-pensions-go-away/#:~:text=In the 1980s, the United,voluntary contributions towards retirement plans.
    stillers stillers in Other Investing
  • Westwood Capital Appreciation and Income Fund will be liquidated
    https://www.sec.gov/Archives/edgar/data/1545440/000158064224003191/westwoodcapappinc_497.htm
    497 1 westwoodcapappinc_497.htm 497
    June 17, 2024
    WESTWOOD CAPITAL APPRECIATION AND INCOME FUND
    Class A Shares Ticker Symbol: WWTAX
    Class C Shares Ticker Symbol: WTOCX
    Institutional Shares Ticker Symbol: WLVIX
    A Series of Ultimus Managers Trust
    Supplement to the Prospectuses and Statement of Additional Information
    dated February 28, 2024, as supplemented
    On May 24, 2024, the Fund discontinued all sales of its shares, except shares purchased by existing shareholders through an established automatic investment plan, or shares acquired through the reinvestment of dividends and distributions. Effective July 16, 2024, shares of the Fund are no longer available for purchase and, at the close of business on July 16, 2024, all outstanding shares of the Fund will be redeemed at net asset value (the “Transaction”).
    The Board of Trustees of the Trust (the “Board”), in consultation with the Fund’s investment adviser, Westwood Management Corp. (the “Adviser”), determined and approved to discontinue the Fund’s operations based on, among other factors, the Adviser’s belief that it would be in the best interests of the Fund and its shareholders to discontinue the Fund’s operations. Through the date of the Transaction, the Adviser will continue to waive investment advisory fees and reimburse expenses of the Fund, as necessary, in order to maintain the Fund at its current expense limit, as specified in the Fund’s current Prospectus and Summary Prospectus.
    In connection with the Transaction, the Board directed that: (i) all of the Fund’s portfolio securities be liquidated in an orderly manner not later than July 16, 2024; and (ii) all outstanding shareholder accounts on July 16, 2024 be closed and the proceeds of each account, less any required withholding, be sent to the shareholder’s address of record or to such other address as directed by the shareholder, including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing accounts. As a result of the Transaction, the Fund’s portfolio holdings will be reduced to cash or cash equivalents. Accordingly, going forward, shareholders should not expect the Fund to achieve its stated investment objective.
    Shareholders may redeem all or a portion of their shares of the Fund on any business day prior to July 16, 2024 as specified in the Fund’s Prospectus.
    The Transaction will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns. In addition, shareholders invested through an IRA or other tax-deferred account should consult the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders generally have 60 days from the date that proceeds are received to re-invest or “rollover” the proceeds into another IRA or qualified retirement account; otherwise, the proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
    If you have any questions regarding the Fund or the Transaction, please call the Fund toll free at 1-877-FUND-WHG (1-877-386-3944).
    Investors Should Retain this Supplement for Future Reference.
    TheShadow TheShadow in Fund Discussions
  • What allocation do you have to international equities and your favorite funds?

    Insightful, but does the current US/Euro gap indicate future trend or represent a possible turning point? One thing for sure, the US will not stay this far ahead forever. There is good growth in the US, but possibly better value may be found overseas.
    Ya, I ventured overseas years ago. The "old saw" was that Europe was "old money." I was looking for a bargain. And I had some EM holdings, too. These days, Europe is even more complicated: Ukraine war, Right-wing election gains. One currency, but many different national budgets.... I did well investing in EM bonds through the GFC and for a while beyond, and then I got out, following some good advice from someone in here.
    Politically, China is uninvestable these days. Authoritarian. Curtailed civil and human rights. They're putting the screws to "special territories" Hong Kong and Macau, too. After having visited there in early 2019, it makes me so sad and angry to see it happening. The Markets have no conscience. But this whole business in China is morally distressing. I'm sworn off of foreign investments in my mutual funds; funds are still the lion's share of what I own. My fund managers have me in UK and Europe, just a tiny bit. I own a Canadian stock with a great dividend; is that "foreign?" Also, a Luxembourg-based maker of oil drilling pipes. Two still very tiny single-stock holdings. In retirement, I like YIELD. My (junk) bond funds provide most of that. Keeping a close eye on them--- a "short leash." Currently, my portfolio provides a 4.05% yield, as calculated by the ever-reliable (LOL) Morningstar.
    Crash Crash in Fund Discussions
  • WSJ on pensions and PE
    guaranteed-income or lifetime-income ... Old name for these is annuities but that tainted term is now avoided.
    Love it. See George Carlin's bit on euphemisms (shell shock)

    Defined-benefit (DB) pensions have gone away except for some federal & state employees.
    It certainly seems that way, but according to the latest BLS statistics, 15% of private industry workers have access to DB plans. More like an endangered species than extinct.
    https://www.bls.gov/opub/ted/2024/15-percent-of-private-industry-workers-had-access-to-a-defined-benefit-retirement-plan.htm
    msf in Other Investing
  • WSJ on pensions and PE
    Like almost everything else, it’s best not to generalize about pensions. My wife and I both have pensions with the state of North Carolina. It is very conservatively managed, although I’m sure it has some private equity. The pension is funded roughly half from employees paychecks and the rest from the state legislature. The state also has an optional 401k plan, but does not contribute to that except for state troopers. Unlike Social Security, the NC pension has no automatic inflation adjustments. I have been retired 7 years and my wife 9 years, and we have not received any inflation increases, although the legislature has awarded a few one-time bonuses some years. So, for those people whining about fat government pensions, that certainly isn’t true for NC. I would wager that most private workers with 401k plans have more generous retirement plans than NC government employees. The NC pension plan is essentially an annuity with no inflation adjustments. Fortunately, my wife and I both voluntarily contributed to the state 401k plan, which provides our inflation adjustment— again with no contributions from state taxpayers.
    Tarwheel in Other Investing
  • WSJ on pensions and PE
    What does it matter guys if one has a gov't pension?
    Next door neighbor retired grade school teacher..wonderful and spunky gal...her deal is her deal, props to her, she was completely dedicated to educating the youngsters. There is no crying in baseball..
    However, bullet proof. Guaranteed payout by state law. No matter if stock market draws down by over 50% ...she is going to get her monthly payment no matter what.
    Tax payers on the hook for all of it. Period.
    Folks bailing out of state in droves, soon as the kids get out of high school and if their job is portable/remote and/or retirement...adios.
    Property taxes went up for most at least +20%, many +25-30%...
    It's all a Ponzi, all based on bullshit numbers....what is really behind the curtain, don't look, you might not like what you see.
    Baseball_Fan in Other Investing
  • WSJ on pensions and PE
    Gifted WSJ article, should be open for all....
    Pensions Piled Into Private Equity. Now They Can’t Get Out.
    Retirement funds seek cash while money languishes in zombie investments
    https://www.wsj.com/finance/investing/pensions-piled-into-private-equity-now-they-cant-get-out-d3ca796d?st=im6wgn61zuvku1o&reflink=desktopwebshare_permalink
    ... apart from portability, this is was the major reason why I never went into the state's pension system when joining the university. I don't trust government/political investment committees -- and besides, if I'm going to make or lose money, I want to be the one responsible for doing so, and that includes either avoiding questionable investments or being able to get out quickly when I want to.
    rforno in Other Investing
  • Curious how your holdings break down into type? Stocks / CEFs / ETFs / Mutual funds, CDs, etc
    We have been retired 12 years with the anniversary date in June. We use what I refer to as 5-yr, Model Retirement Portfolios (MRP). We are thusly two years into our 3rd, 5-yr Model. Each has been significantly different in composition.
    The FED started raising interest rates in June 2022 as we were creating our current 5-yr MRP for 06/2022-06/2027. We projected at that time that before long, CP CD interest rates would be over our 4% threshold for FI investments.
    So we did two major structural changes starting around that time,
    (1) split our total portfolio into two distinct portfolios and
    (2) jettisoned ALL dedicated bond funds while significantly reducing bond holdings.
    So currently we have a Market Portfolio (MP) and a 5-yr, CP CD Ladder Portfolio. Total port is 98 IRA/2 Txbl. We haven't paid any FIT/SIT since 2012 and don't plan to do so for about 5 more years. The two ports are similar in size, with the latter port designated as our LTC self-funding. It currently has an APY just over 5%.
    The MP is about as basic and straight forward as they come:
    12 OEFs with 10 Core and 2 Explore OEFs, and occasional trading of Blue Chip, individual stocks like NVDA and GOOGL.
    The MP is:
    Stocks/Bonds/Cash: 88/12/Nil
    Domestic/Foreign: 90/10
    Technology Allocation: 36
    MAG 7 Allocation: 29
    LC/MC/SC: 74/20/6
    V/B/G: 16/34/50
    The 12 OEFs are:
    3 Domestic Stock Index
    1 Domestic Sector
    2 Domestic LCG
    1 Domestic LC Value
    1 Domestic SCG
    1 Global LCG
    1 Foreign LCG
    2 Moderate Allocation (which provide our ONLY bond allocation)
    2024 YTD TR of the MP is, well, um, never mind. That was not asked for by the OP and if given may very well be deemed bragging by my detractors.
    stillers stillers in Other Investing
  • Current CDs are Compelling
    VA = Variable annuity. In Fidelity's case, that's Fidelity Personal Retirement Annuity®
    msf in Fund Discussions
  • BKIPX? Not available at Fidelity?
    For retirement plan classes (K at Fido, R1-R6 elsewhere), minimums would apply to plans, but plans may have no minimum for participants. This is because typical purchases are from regular salary payments. These retirement classes cannot be transferred in-kind on job changes or termination.
    There are several ST-TIPS ETFs - VTIP, STIP, TDTT, STPZ. But TIPS funds were disasters in the bond selloff of 2022. Problem is that they have a strong duration effect. So, it is best to just buy ST-TIPS at auction or in the secondary market at brokerages.
    yogibearbull yogibearbull in Fund Discussions
  • BKIPX? Not available at Fidelity?
    Thanks for the suggestion @bee / Nice looking etf. I’m just looking out a month or two at a potential need. Adding things to my watch list that look enticing. Yes - I’m aware Yogi pointed out that BKIPX was for retirement plans. I was just jesting about the $5 Mil minimum.
    hank in Fund Discussions
  • BKIPX? Not available at Fidelity?
    @hank, Yogi said BKIPX is for retirement plans, like work place 401(k), not for retail.
    BaluBalu in Fund Discussions
  • BKIPX? Not available at Fidelity?
    Not all funds are supported at Fido even when it has a deal with iShares on many funds.
    iShares ST-TIPS:
    BAIPX https://digital.fidelity.com/search/main?q=BAIPX
    BIIPX is TF & $2 million min https://fundresearch.fidelity.com/mutual-funds/summary/09258N885
    BTW, BKIPX is retirement plan class K and not available to retail.
    yogibearbull yogibearbull in Fund Discussions
  • Current CDs are Compelling
    There are institutional share classes and institutional investors. Schwab has designated more funds as accessible only to institutional investors / advisory platform; some of these funds are accessible to retail at Fido but the institutional share class of these funds at Fido is very high ($1m?) compared to at Schwab
    Sometimes yes, sometimes no.
    AQR institutional class shares, e.g. QDSIX (an MFO Great Owl) are as you described - available only to institutions at Schwab and available for a seven figure min ($5M) at Fidelity.
    Allspring (formerly Wells Fargo) institutional class shares, e.g. WFMIX (another MFO Great Owl) are available only to institutions at Schwab but open to retail investors at Fidelity. In an IRA (and only in an IRA), Fidelity sets no min. One could buy $50 worth for $99.95 including TF.
    a CD of any bank that has the potential to be forced by regulators/ FDIC to be taken over by another bank, the acquiring bank is allowed to change the interest rate on the CD for the remaining time period prior to maturity - generally speaking.
    Yes, but. There is an out. If the rate is changed, the saver is allowed to get out without penalty. The risk is in having one's long term rate lock broken. A saver does not face an unexpected liquidity risk; in a sense just the opposite.
    https://www.fdic.gov/consumers/banking/facts/payment.html
    (See: How does a bank closing affect interest accruing on my deposits?)
    Circumstances change over time. When I was still employed and younger, I was rather aggressive investor, traded often, and used Wellstrade Brokerage, because I was given 100 free trades a year. When I retired, my wife and I moved to a smaller city, to be close to my children and grandchildren. With that move and retirement, I decided to transfer my brokerage assets to Fidelity--that was a good experience for me until Fidelity started eliminating many of the Institutional share class funds, and replacing them with a different share class. I was not pleased with that decision by Fidelity, and decided to switch from Fidelity to Schwab Brokerage, because Schwab was still offering those Institutional share class funds that Fidelity was closing. Schwab also incentivized me to make that brokerage transfer, by offering to reduce the Transaction Fees, for the Institutional share class funds, to only a fraction of the normal Transaction Fee. It was also helpful that only Schwab had a brokerage office in the small city we had moved to. That was especially comforting to my wife, knowing she could go to the Schwab office for assistance, if she outlived me. Of the 3 brokerages I have used, Schwab provided me the best overall menu of funds, best fund research tool, and the most institutional share class funds. When I cashed out of the market in 2022, I had such a large amount of cash that I was able to invest in SNAXX as the Money Market fund that paid the highest rate. SNAXX has been paying close over 5.4% for most of 2023, and some of 2024, but recently dropped to around 5.3%. I am willing to hold larger amounts of cash in SNAXX for liquidity reasons, and wait for the CDs in highly rated Banks. I did decide to transfer a large chunk of money out of Schwab in 2023, to my Capital One Bank account, because they were offering CDs at a 5.25% rate, and if I needed to sell those Bank CDs early, my penalty would be just 3 months of interest. I prefer Bank CDs over Brokerage CDs, for liquidity reasons, but I am at my maximum FDIC insured amount for Capital One.
    dtconroe in Fund Discussions
  • Fido first impressions (vs Schwab)

    If you've got at least $10K in cash in your IRA, you can open up a position in FZDXX ($10K min for retirement accounts). It's currently paying 5.15%. Fidelity officially requires one to maintain at least $10K in the fund, but generally it is quite forgiving so long as you don't bring the balance down to zero.
    This is not a core fund, so any time you have cash in the IRA (e.g. non-reinvested divs), you'll have to move it to FDRXX yourself or the cash will sit in your "Cash, Held in Money Market" fund.
    To answer the original question: click on the cash link as described above. You may see a "Change Core Position" button if other options are available.

    Thanks for the tip on FZDXX...I've had retirement accounts at Fido for a very long time and never heard of a reduced minimum for such accounts, until now. Just made the switch!
    wxman123 in Other Investing
  • Vanguard Website
    @sven
    Fido was wife's 401k custodian so most of her retirement money is there.
    Our joint taxable account we started in 1988 at Schwab when we had an advisor for mutual funds. He used Littman-Gregory " No Load Fund Analyst" ( anybody else remember them?) so I finally decided I could do it myself with the newsletter. Then they stopped the newsletter and I didn't think it was worth a 0.7% fee on top of MF fees. Fortunately Fund Alarm was available.
    While the advisors at Schwab changed frequently in the past, they have been stable the last 10 years. I can email the guy we have and he responds quickly.
    I don't use them for investment advice but they are helpful with paperwork etc. I did explore their financial planning but decided I could do just as well with investments for now.
    We never really connected to someone at Fido. I gave them a chance last year to demonstrate their ideas about financial planning and they kinda blew it. The rep didn't seem interested in following up and all they offered was Fido mutual funds.
    I gave Vanguard a chance too, but they said they would ignore all of our existing low cost basis stocks so I though that was a no go.
    I am sorta in the "paranoid" level of account security ( like Andy Grove) and I think having about a 50/50 split in brokerages is not a bad idea.
    If they have good analytics, I have missed them, so I use M* and Quicken and a lot of the stuff people use here.
    sma3 in Fund Discussions