The Investment Thread (7 Viewers)

[efil4stnias]

I've got some money invested with a fiduciary at Merrill. Expenses are only 0.9%, btw.
I had been mostly large cap growth for the past 5 years and she convinced me to undergo a portfolio shift to a blend of mid and large cap value with a higher overseas % exposure a couple weeks ago.
The more that I'm hearing from CNBC and reading on the web, this was a good move. I feel comfortable with it.

financial advisors, to me, are like mechanics. When you find that "one" they are really indispensable.

 

[superchuck500]

I know timing is impossible with certainty or precision.

What I have is a set of funds I can move my money between without additional fees etc. Where it is right now, I'm only seeing 6-8% annually. The bulk of the investments are below.

Russell 1000 Index Fund.............35.31
U.S. Debt Index Fund E.............. 27.96
BlackRock MSCI ACWI ex-US IMI Index Fd E...................................23.78

The Stable Value Fixed Income Fund is currently offering 2.7%, but that percentage is adjusted quarterly. It's basically bonds and securities.

Bond Sector Diversification % of Assets
Corporate Bonds........................ 42.80
Mortgage Backed Securities....... 31.50
Commercial Mortgage Backed Securities...................................... 7.80
Asset Backed............................... 6.60
Non-Agency MBS......................... 5.90
Collateralized Mortgage Oblig...... 2.80
U.S. Treasury............................... 1.30
Cash............................................. 0.90
Agency.......................................... 0.40

Six to eight ain’t bad. That fixed allocation isn’t guaranteed - it could go to near zero but it isn’t likely to go negative. Corporate bonds and MBS are good shelter unless there’s a full scale systemic crisis.

Can you allocate between the funds? Like instead of going full fixed income can you adjust ratios between them? That’s probably the best play. What’s the clearance time? I’d say three days is median but if you can move in less than that, it lets you be a bit more nimble.

 

[Saint_Ward]

HEI.......

The stock had been hammered the last month. Still up on the year... but.. ouch.

 

[Tapxe]

Six to eight ain’t bad. That fixed allocation isn’t guaranteed - it could go to near zero but it isn’t likely to go negative. Corporate bonds and MBS are good shelter unless there’s a full scale systemic crisis.

Can you allocate between the funds? Like instead of going full fixed income can you adjust ratios between them? That’s probably the best play. What’s the clearance time? I’d say three days is median but if you can move in less than that, it lets you be a bit more nimble.

Yes, I can do some percentages for existing balance and new deposits. I kind of have been just leaving it be as I don't know how to pick stocks and index funds seemed like a good play.

I did dump some into the stable fund several years ago and it was same day iirc. That said, they forced new options on us and this plan isn't nearly as responsive as the prior. I'll call and ask em tomorrow.

 

[superchuck500]

Yes, I can do some percentages for existing balance and new deposits. I kind of have been just leaving it be as I don't know how to pick stocks and index funds seemed like a good play.

I did dump some into the stable fund several years ago and it was same day iirc. That said, they forced new options on us and this plan isn't nearly as responsive as the prior. I'll call and ask em tomorrow.

I think adjusting your allocations makes sense. At 50 you should be heavy on stocks but if you’re anticipating a market pull-back, adjust your ratios to more fixed for safety - but leave some market exposure. It’s a good way to meet both objectives.

 

[Tapxe]

I think adjusting your allocations makes sense. At 50 you should be heavy on stocks but if you’re anticipating a market pull-back, adjust your ratios to more fixed for safety - but leave some market exposure. It’s a good way to meet both objectives.

Thanks

 

[You]

I think October will be a challenging month for stocks

 

[Saint_Ward]

I think October will be a challenging month for stocks

Way to go out on a limb there...lol. Isn't the case for every October?

 

[superchuck500]

Way to go out on a limb there...lol. Isn't the case for every October?

Historically, October is the most volatile month. But September has the lowest returns.

 

[You]

Way to go out on a limb there...lol. Isn't the case for every October?

Yeah, I was understating it

 

[Saint_Ward]

Yeah, I was understating it

Ha, I know, I was just ribbing you in good fun.

 

[superchuck500]

. . . and we're down 500

 

[efil4stnias]

...and only Oct 2. lol

 

[NewOrleansFan]

Fed may have to cut another .25.

 

[Saint_Ward]

I am thinking it is time to take profits on the S&P 500.....

The question is, do I just take my gains or just get out for a bit.