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Question On Some Funds

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It has been suggested that I convert my Traditional Annunity (403b) at Tiaa-Cref into the following: DFA Global Equity, Pimco All Asset and Huffman Strategic Growth. My annunity has been paying about 3%, pretty consistently. All my other holdings (not listed) are fairly conservative. If I go to these funds via my 403b, I do not pay any brokerage fees. Later I can convert everything to an IRA as I have retired.

 

In a few days I will probably detail my asset allocation and ask for feedback, but for now I'd just like some opinions on these funds. I do want to be more moderate--I have been conservative out of inertia. I do have a Janus Overseas Fund that I will likely rollover to Vanguard. I'm tired of that particular roller coaster.

 

Thanks for any thoughts.

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Hi bee,

 

There is no Huffman in the Google search, there is a Hussman. Anyway here is Huffmans prospectus: charge 1.05%, way too expensive. http://www.hussman.net/pdf/hsgprosp.pdf

 

Pimco is a huge bond fund with a dangerous manager, Bill Gross, who got out of treasuries last spring thinking he would cash in on the crash, but it didn't happen. What a stupid move. But it proves my point to stay away from managed expensive bond funds.

 

DFAs might be promising. They are in the Pension 2 list. But outside of pension 2, DFA access is that you have to hire an adviser and pay him or her to get into these funds.

 

Who suggested these funds?

 

Here is my suggestion so we can help you more effectively. Detail us your asset allocation now so we can help you more effectively. This piece meal information chasing for each fund is tedious and unproductive. Lets us know the big picture and then we can fill in the details that will get you where you want to go.

For example, why do you want to be "more moderate?" Does that mean more aggressive, more in equities?

Now that you are retired, how much to you want to take out in percentages? You don't have to reveal dollar amounts.

 

This is just to get started. This is an important thread you started as many people who begin retirement need to learn how to set up a portfolio that pretects their assets and produce an income strea m that will keep up and beat inflation and last for their rest of your life.

 

Steve

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Guest Joel Frank

It has been suggested that I convert my Traditional Annunity (403b) at Tiaa-Cref into the following: DFA Global Equity, Pimco All Asset and Huffman Strategic Growth. My annunity has been paying about 3%, pretty consistently. All my other holdings (not listed) are fairly conservative. If I go to these funds via my 403b, I do not pay any brokerage fees. Later I can convert everything to an IRA as I have retired.

 

In a few days I will probably detail my asset allocation and ask for feedback, but for now I'd just like some opinions on these funds. I do want to be more moderate--I have been conservative out of inertia. I do have a Janus Overseas Fund that I will likely rollover to Vanguard. I'm tired of that particular roller coaster.

 

Thanks for any thoughts.

 

 

How old are you? Do you have a significant other? Are you retired from higher education or k-12? Do you have a Defined Benefit pension? When will you be drawing SS?

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Thank you, thank you, Steve and Joel. Okay, you asked for it, get ready for details.

 

Firstly, those 3 funds were part of a portfolio worked out for me by a recommended fee only financial planner. I don't want to give a name but I will say that after working with him, and speaking briefly with two other fee only persons, I realized that most of these folks want to take on and manage my portfolio for me, for a fee, of course. The fee is probably reasonable, but it becomes a managed portfolio AND I'm not in as much control (or lack of it, as I look at my last 15 years). Also, in his defense, this was done before I retired, about March of 2010. This person works through TIAA and Fidelity, so he essentially suggested moving all my Vanguard money to TIAA, and left my Nationwide money alone (which I had really wanted to move to Vanguard and/or TIAA). He wanted to do one Vanguard fund THROUGH TIAA. He said he no longer believes in buy and hold...

 

This week I have turned in my own paperwork to rollover Janus Overseas to Vanguard (hope I didn't mess up on dividends), and am trying to decide whether to move my Nationwide to BOTH Vanguard and TIAA, or just one of them. That's why I asked about the 3 funds--I've figured out they are brokerage accounts, and "free" through my TIAA 403b. So I was trying to look objectively at some of the FP's suggestions. He mentioned that he no longer likes one of these, but didn't tell me which one. AND, if he was managing my portfolio, that would've meant moving it. Buy and sell..."Brokerage" also affects whether I roll everything over to IRA's, where that would cost something.

 

One last comment before the personal/financial details: last night I REALLY looked over everything I have, especially Nationwide. I never really took the time to do this while teaching. I've averaged 4.3?% over the last 10 years. To me, that's crap. I'd said many times I felt it was just an enhanced savings account, and while 4.6 may be okay this year, I really should've moved those funds many years ago. I complained, but didn't take charge. I never even really "got" the statements. Last night, I noticed (!) that each quarter, hidden among the 3 pages of fund listings, was a little note that said, "You have made 3.2% YTD" or something similar. Hidden, yes, but I should've found it and been energized to move the money, even within Nationwide. So I ask myself, "Why would I keep it there now?" I have better options and more time to think and act. The FP said (several times) to leave that money there (at the time about 50% of my savings).

 

I am 58, 4 months retired, single, renting (low rent) and have a side hobby/business that brings in enough that I don't "deprive" myself. I live very inexpensively and save very well and do not expect to be taking money out of my accounts until I have to (70). Then it'll be a minimum. If my elderly mom comes to live with me, well then I may buy a place...oh, there was a buy-out in my district, so I have 5 years of extra income. I'm sending it directly to my Tiaa 403b. I took my DBS as a one time rollover to my 403b (the idea being I could do better on interest than what it gains over 3-5 years?). I taught K-12 and took health insurance through age 70, where I pay 19%.

 

Here's what I have now:

48.0% cash (banks, interest varies from .2 to 1.1%)

4.0% Roth IRA Traditional Annunity, Tiaa-Cref, CalSTRS P2, 1% guaranteed (now getting 2.6%)

5.0% 403b Traditional Annunity, Tiaa-Cref, CalSTRS P2, 3% guaranteed

6.0% 403b NSDMX Nationwide, through FBC

10.0% 457 NSDMX Nationwide, through FBC

 

All of the above funds were "holding places" 'til I decided where to put the money. Never got around to it...(a strong example of why many teachers do use or need advisors. We put school before selves).

 

4.0% 403b Janus Overseas (closing that one--moving to Vanguard IRA Total Bond while I make decisions--wouldn't TIPS be better?)

10.0% 403b Vanguard Total Stock Market

2.0% 403b Vanguard Small Cap Index

2.0% 403b Vanguard Total Bonds

1.5% Roth IRA Vanguard Prime Money Market/Brockerage (a few stocks)

10.0% Roth IRA Vanguard Small Cap Value

00.0% IRA Vanguard Total Bond Market--holding tank for rollovers

 

Okay--it's not 100%, but it's as close as I can get.

 

It seems between all the bonds, cash and low performing funds that I could be doing better--that's why I said I want to be more moderate. I am not in any way keeping up with inflation, IMO. For all that I read and know, I really DON'T know how I'm doing. Not horrible but poorly, I think.

 

I should've posted all this awhile ago, but after going to the FP I thought it "wouldn't be right". I'm over that now, and would appreciate any and all suggestions, help, etc. I am holding my Nationwide paperwork to see if you think that 16% should go to Vanguard, Tiaa or both. I'd like to turn it in FAST, as I have trouble dealing with the FBC person who keeps convincing me that I'm doing fine with Nationwide (she's on vacation). I also know I've stayed in the Traditional (Tiaa) way too long. It was supposed to be a temporary hold. I"m DONE taking forever.

 

Thanks!

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