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First, getting out isn't momentum.
Second, I have heard so many times, you can't time the market. When I was an accumulator, I didn't care. When I got older, and had a lot more, I learned how to do it. Since 2018, retirement, I was out to MM with a max loss of less than 1%, while the SP500 lost 3 times 20% minimum.
Third, I got back on time, not the bottom, but at much lower prices.
If you want to swim, you can't learn it from a book, you actually, have to do it live.
How do you manage through a cycle of rising interest rates and higher inflation? There aren’t too many money managers who have that experience …The bond bull market began in 1981.
That’s about 41 years ago.
Let’s assume the manager had a minimum of 10 years experience as an investment manager / advisor preceding the bond bull market.
If age 15 when he / she began their career they’d be 66 today (in or near retirement).
If 25 when he / she began investing they’d be 76 today.
If 35 when he / she began investing they would be 86 today.
In an article titled “In Praise of Target-Date Funds,” one of our favorite WEALTHTRACK guests, Morningstar’s Director of Personal Finance, Christine Benz described them as “…nothing short of the biggest positive development for investors since the index fund.”
That got my attention! So this week we are interviewing one of the best target-date managers in the business. He is Wyatt Lee, who is Head and Co-Manager of T. Rowe Price’s $390 billion Target Date Strategies, the largest group of actively managed target-date products in the U.S.
The firm’s Retirement Series earned a Gold analyst rating from Morningstar, one of only two in the actively managed category, for its stellar performance and high ratings for its process, people, and the parent company.
Lee begins with the basics and defines what a target-date fund does and how the product has evolved since it was first introduced in 1994. It turns out target-date funds can be an effective retirement vehicle for investors at all stages of life and that there are many options available.
Part 2 of 2
Candid career advice from three super successful women portfolio managers. Causeway Capital’s Sarah Ketterer, Capital Group’s Karen Choi, and Canyon Partner’s Robin Potts share their victories, setbacks and strategies as they tear down the pink wall.
This is deliberately conflating risk to a portfolio with threats, real or not, posed by some companies within said portfolio. In fact, the FRTIB emphasized the prudent nature of moving the I fund benchmark from the EAFE to the ACWI ex-US index.it is unlikely that your Board would be able to ensure that the approximately 5,000 mutual funds are all free of Chinese firms that pose a direct threat to American national security, enterprises implicated in Chinese Communist Party (CCP) human rights abuses, or companies that otherwise lack the requisite financial transparency and fiduciary responsibility to qualify as prudent investment opportunities. In fact, the FRTIB has explicitly acknowledged as much ...
https://www.tsp.gov/plan-news/investment-benchmark-update/In coming to this decision [to switch to ACWI ex-US], the Board noted that moving to the broader I Fund benchmark is in the best interest of participants and beneficiaries, a current best practice in the investment industry, and is widely recognized as a smart strategy in today’s market. The ten largest U.S. companies’ 401(k) plans all invest in emerging markets, as do the ten largest federal contractor plans and the six largest target date fund providers. In addition, the 20 largest defined benefit plans—all of which are for state government workers—invest in emerging markets. TSP participants can decide which TSP funds they want to invest in.
Granting, for the sake of argument, such widespread outrage (which seems dubious as few track such details}, the delaying (not abandoning) of the transition was due to other reasons, notably covid:After widespread and bipartisan outrage in 2020, the FRTIB voted unanimously to abandon the ACWI ex-US IMI transition.
https://www.tsp.gov/plan-news/i-fund-transition-defer-2020-05-13/Board defers action on I Fund transition — Due to a meaningfully different economic environment related in large part to the impact of the global COVID-19 pandemic, as well as the nomination of three new Federal Retirement Thrift Investment Board Members, pending further study, the Board is delaying the implementation of the I Fund benchmark change to the MSCI ACWI ex-U.S. Investible Market index from the MSCI EAFE index.
That seems to be belied by the very minutes cited in the letter. The FRTIB not only acknowledged the presence of Chinese companies in some the 5000+ funds available in the US (though identifying specific investments at every moment in time would be problematic). It also acknowledged that the developed nations benchmark used by the I fund already includes Chinese companies via Hong Kong.U.S. service-members and other federal employees would likely be shocked to learn that the FRTIB is unaware of which companies make up these approved funds or what risk those companies pose. ... When they invest through TSP, they rightly expect the FRTIB will protect them and their investments from these types of dangerous investments.
https://www.frtib.gov/meeting_minutes/2021/2021May.pdfShe also noted that the TSP’s current I Fund index includes Hong Kong, which is part of China, and that there is no widely recognized index for developed markets that excludes Hong Kong. As such, to both divest from Hong Kong equities and create a new, specially designed index without Chinese investments would increase costs to all TSP participants. It would also preclude the implementation of the TSP mutual fund window, as monitoring approximately 5,000 mutual funds for any investments in Chinese entities would prove too costly for the plan.
... and Donald J Trump built the wall in 2017 with Mexican pesos?Toward the end of a first term dominated by international terrorism, President Bush renewed this call in his 2004 State of the Union address: “Younger workers should have the opportunity to build a nest egg by saving part of their Social Security taxes in a personal retirement account. We should make the Social Security system a source of ownership for the American people.”
https://www.tsp.gov/publications/tspbk12.pdfYou can make an age-59½ withdrawal only from an account that’s associated with your active employment. So, for example, if you have a uniformed services account but have left the uniformed services and are now a federal civilian employee, you can only make an age-59½ withdrawal from your civilian TSP account.
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