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Contest To Be Measured Each Quarter

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This is just for fun right? Just like when the monkey picks the stocks in the Wall Street Journal versus the big time pro's. Nobody's gunna get crazy over this stuff are they?

 

I read the previous posts and it doesn't seem like there's any real rules about what kind of allocation we want to pick and it doesn't say anything about experimentation. Just like the various pools I enter from time to time I wanted to take a different approach - I decided to ONLY pick from load funds and after much thought (only about 5 minutes) I've decided to enter with the following attempt:

 

American Balanced Fund A shares - ABALX - all 50K

 

I would have put more effort into this but, ScottyD only picked one fund (I thought that was a cool thing to do!) and I want to go check the surf before dinner. We have to keep our priorities in line here people.

 

And who knows sometimes the monkey wins!

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TR,

 

I won't let you get away with that - you rip on the site and I call you on it and I'm the one who is Ad Hominem.....interesting.

 

The facts are on my side, that's not hard. I did enter a portfolio, the DFA Global Equity Fund, it just so also happens to be the benchmark because it represents a well diversified portfolio.

 

It's a pretty simple concept hear, we aren't asking for your best fund pick, we are asking for a diversified portfolio, or just a portfolio that you would recommend. I don't think it's unfair to compare a portfolio to a portfolio. It's not unfair to compare a tactical asset allocator to a passive buy and hold - in the end the truth will win, sure the two portfolio's maybe completly different and will perform differently - but in the end who will have the most money given the risk taken?

 

That is all the contest is measuring, one PORTFOLIO to another.

 

ScottyD

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Guest TR1982

Scotty,

 

"This web site probably won't be here in 5 years."

 

I didn't rip on the site. I just said the site might not be here in 5 years. Is that an insult? I might be dead and gone in 5 years. Is that an insult?

 

"Your ss at the website were childish and show your true nature." Calling me childish is an insult. Acting as if you know my true nature is ridiculous. Maybe you should look in the mirror.

 

Please explain to me why you can't have 2 portfolios that have the same tactical allocation but one that uses active funds and one that uses index funds. I thought that was the point of the contest. If you have portfolios that have different tactical allocations, there is no way that it would demonstrate anything about active vs passive investing. It simply would reflect the different tactical allocation emphasis. For example, your pick, DFA Global Equity, has no bonds. If bonds outperform stocks over the next three years. would your portfolio be worse than a portfolio that is 75/25? Probably. So what does that tell you? It depends on what your investment time horizon is and your risk tolerance. That's why I think that you have to compare similar allocations.

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DFA Global Equity has a $2,000,000.00 minimum. It would make a good benchmark, but it is not currently available to 403(b) participants with $50,000.00. If you are successful in changing the rules at DFA, you can add it then. I will post my picks on the 29th. You bash all of us load selling "financial advisors" then pick something totally unrealistic. I will be choosing funds that I sell everyday and 403(b) participants can invest in.

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Thanks Groundswell, welcome to the site, and 403bagent(please don't forget to have index, 5 digit letters so it can be posted at Morningstar) for participating.

 

I think that we had mentioned, that even though the length of the contest will be a five year duration, we will look at the preformance on a quarterly basis.

 

Additionally, we had discussed changing the portfolio each quarter only. If we can post at one location at say at Morningstar where we all have access, how about being able to make changes whenever you wish?? Opinions about this proposed change in the rules and posting together at Morningstar please?........................Ira

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On second thought after remembering what Dan had posted it still would be best to make changes on a quarterly basis only.

 

""Ira, M* does not automatically add shares that result from splits/dividends/capital gains. We will need a way to accomodate those changes, best done at year end usually..Dan""

 

Ira

 

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My name is Mark from connecticut, I am an Ria and work primarily with teachers 1-5 years from retirement. I have referenced this website for the last 5 years in my 20 Plus workshops I conduct annually. Average attendence is about 75 people, mostly teachers ith some spouses. I enjoyed reading this thread and would like to participate. I have some payroll deduction business(about 2 million annuallly) but most of bu business is planning, and advising people. I get paid a fee for a plan and if they choose me as an Ria--about 1% a year. I was in the commission worls before the fee-based world switch in 1999. I am proud to say I have 60 million under management and growing about 10 million a year. I use no-load funds and load waived funds.

I am requestioning to be in on the 50,000 as follows.(coming) I will purchase these funds at nav(load waiveD) or no load. Can I proceed this way..

Also thanks to all for being a great resource. I all day defend the teacher fom the annuity salesperson. I do make a good living in my chosen niche, but I love helping teachers find a better way. And they do need planning!! my best,Mark

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this is mark again--my porfolio--assuming it is OK is...evenly in the following funds. This portfolio is a client who has the time to put up with ups and downs, and no need for income in the next 5 years. I have 95% of my clients retirement money invested towards growth like this portfolio. I beleive in NICK MURRAY---please read simple wealth inevitable wealth--so far I have handed out 265 books--what a great message!!

 

fexpx=fidelity export & multinational

aceix=van kampen equity and income

tedmx=templeton dev. markets

prfdx= t.rowe price equity-income

kdhax=scudder dreman high return

gabax=gabelli asset aaa

nyvtx=davis n.y venture

cvgrx=calamos growth

caibx=amercan capital income builder

vgstx= vanguard star

my best,Mark

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Just so there is no confusion about the DFA Global Equity fund, and for the individuals who have a hard time reading previous posts on the topic I will once again say that the DFA Global Equity fund has a "stated" minumum of $2 million, but it is available in retirement plans for accumulation with no minimums as long as the recordkeeper puts it on the platform. I could start a 403b plan today and offer the DFA Global Equity fund. Even if it wasn't available it would serve as a good benchmark because it represents a globally diversified portfolio of index funds.

 

As for the split between equity/bond - my assumption (perhaps incorrectly) was that this was not a contest to measure the return on bonds, but to measure the return of a diversified portfolio of stock mutual funds, that is why I have used the 100% diversified equity portfolio. You can always pair it with a bond fund after the contest to see how any other equity/bond split would have performed.

 

As for the individual who wanted me to look in the mirror, I have done that - I like what I see and think I will continue to be me, but thanks for the advice!

 

ScottyD

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Hi Mark...........Welcome to the contest, and the site. I feel that any knowledge that you share with the this site will be a great asset.

 

Hi Scotty..........I still feel that the portfolio that you are using is fine. My interpretation of the portfolio's that we choose is that it can be all equity, all fixed income or a combination of the two. Just pick the one that will be in the lead versus other participants, in five years time.

 

Ira

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Guest Sierra

The entire working and retired population are the targets of the commissioned salesperson. Teachers and their 403bs are but a small part of this national market. Let's all be careful out there.

 

Joel

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The entire working and retired population are the targets of the commissioned salesperson. Teachers and their 403bs are but a small part of this national market. Let's all be careful out there.

 

Joel

How does your post contribute to the contest?

 

This thread is about a fun contest where we all throw are ideas in the hat and see what happens. This contest has no real winner or loser. We all win because of the information we share.

 

Excuse me if you all have been through this with this guy before.

 

PLEASE! leave this thread alone and let us have one positive interaction with each other AND the investment guys.

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If the DFA Global Fund does better than my portfolio I will cry foul, afterwards. I know that is sort of chicken, but I am not proud! It's nice to have some competition. We need to remember to enter each one on Oct. 1 on M*, however, they can still be checked quarterly using any newspaper that reports quarterly gains (L.A. Times)...Bona Fortuna..if you like fish, Dan

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Here are my picks for the contest. Do I need to post these on M*, if so where?

 

C Shares

Growth Fund of America 25% GFACX

New Perspective Fund 25% NPFCX

New World Fund 25% NEWCX

Capital World Growth and Income 25% CWGCX

 

Index MSCI EAFE

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Guest Sierra

Groundswell:

 

My remarks to which you took exception to was directed to Mark-Ria who said: "I all day defend the teacher fom the annuity salesperson."

I felt that it was appropriate to point out that teachers are a small portion of the market place in which sharks swim.

 

Joel L. Frank

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