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To clarify: I was referring to *pensions* that employees only pay into but have no control over how it's invested - those are the places witih the fat allocation to expensive hedge funds/PE black boxes. My state (MD) 403(b) also has the brokerage window where I could dump 0-99% of my 403 now into whatever fund I wanted to offered at TIAA or Fido ... but I'm happy with the one LCV fund I'm in now at TIAA, so I haven't used that.
Many government retirement plans offer up to 25% in self directed mutual funds at outside firm such as Fidelity. CA state retirement plans are a mess with agenda that have nothing to do with best risk adjusted return. My wife worked several years for state - I need to move over to something like Fidelity balanced.
Many government retirement plans offer up to 25% in self directed mutual funds at outside firm such as Fidelity. CA state retirement plans are a mess with agenda that have nothing to do with best risk adjusted return. My wife worked several years for state - I need to move over to something like Fidelity balanced.@Tarwheel again I agree completely.
It's also why when I joined my state university system I avoided the pension plan and went for the self-directed 403(b). Many state pensions have huge positions in various (and costly) hedge/PE investments that I want no part of ... plus I don't trust the investing savvy of the political appointees overseeing the pension's investment, many of whom live and die by whatever the Wall Street favorite 'thinking' is at the time regarding allocations.
As I said at the time, if I'm going to lose or make money, I want to be the one responsible for it.
ETA: Somewhat off-topic but IIRC the Nevada State Pension is entirely in Vanguard funds. A WSJ article a few years ago talked about how 'boring' the Pension Chief's job was. :)
Let's not conflate trading with the number of funds an investor holds."Simple" question: what do you think will generate better results for Joe average investor during his lifetime...holding up to 5 funds and hardly trading, or using 10+ holdings with more trading?
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Rossby, I am also focused on my age, and my desire to avoid unnecessay stress in protecting my retirement assets. I keep hearing these statements about how investors think they can "guarantee" that other asset classes will make much more than CDs, but I keep experiencing market changing events that are "unique" that cause unexpected changes in total return reality. I am about to turn 76, starting to experience noticeable changes in my health conditions, starting to think about potential changes in my living options, etc. I have no idea what the age of each poster is, who are making comments, but younger persons can look at this thread as just a money making accumulation decision, while they go to work each day, and enjoy a variety of employment fringe benefits. I no longer work, and I must adjust my investing decisions based on the absence of employment pensions and accommodations for age related investing decisions. Everyone has a unique set of life circumstances that must be considered what risk you are able to take.As a Super Senior, CDs are very important in our savings and planning.
They offer security and liquidity and beat the low savings offered at our local CU. We have about 20% in Mutual funds and that makes us over extended if one uses the 100-age rule.
A change if our life style, Assisted Living, may be around the corner.
To make things simple for my wife and our heirs we have investments in only 2 firms. I am shortening our CD ladders to one year with many rungs.
The stability of the bank offering the CD is more important than a few tenths of a % in the interest rate.
Our pension and SS income is well greater then our current living expenses but would be gobbled up in a cared living facility.
I miss the “Investing After Retirement” forum on the M* of the olden days.
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