[Advice on investments?]

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Topic Author
justgettingby
Posts: 4
Joined: Mon Apr 15, 2019 11:40 am
Location: NY

[Advice on investments?]

Post by justgettingby » Mon Apr 15, 2019 11:59 am

[moved into its own topic - moderator prudent]

New to BH also. 62 yrs old possible retirement in 1-2 years, married. Spouse brings nothing financially to the table.
I just made a move last week to the INCOME PLUS which is 70% bonds and 30% stock. Before that I was 100% stock.
Here's my mix in the 401K:
INCOME PLUS 30.00%
MODERATE 24.97%
FID GROWTH CO K 14.98%
LARGE COMPANY IDX 10.03%
FID OTC K 10.01%
Other 10.01%

Got a cash pension (rollover or annuity?) current earning a fixed interest rate or just over 3% thru my company.
Still working so no SS yet.
Comments?

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arcticpineapplecorp.
Posts: 3896
Joined: Tue Mar 06, 2012 9:22 pm

Re: [Advice on investments?]

Post by arcticpineapplecorp. » Mon Apr 15, 2019 1:22 pm

justgettingby wrote:
Mon Apr 15, 2019 11:59 am
[moved into its own topic - moderator prudent]

New to BH also. 62 yrs old possible retirement in 1-2 years, married. Spouse brings nothing financially to the table.
I just made a move last week to the INCOME PLUS which is 70% bonds and 30% stock. Before that I was 100% stock.
Here's my mix in the 401K:
INCOME PLUS 30.00%
MODERATE 24.97%
FID GROWTH CO K 14.98%
LARGE COMPANY IDX 10.03%
FID OTC K 10.01%
Other 10.01%

Got a cash pension (rollover or annuity?) current earning a fixed interest rate or just over 3% thru my company.
Still working so no SS yet.
Comments?
welcome to the group.

if you can repost using the following format, that would be more helpful:

viewtopic.php?t=6212

for instance, we don't know what "other" is. You say you were 100% stock, so since the only thing you changed is the addition of income plus does that mean "other" is also stock?

If so, then you only have 21% total in bonds if all else is stock because if income plus is 70% bonds and this fund is 30% of your overall portfolio, then 70% of 30% is 21% bonds overall. Is this true? Do you want to be 80/20 in your 60s? That seems a little risky especially considering you plan to retire in 1-2 years. If the stock market goes down 30% your portfolio may fall by 24%. Is that an acceptable decline in retirement?

Please repost using the "asking porfolio questions" link so we have some more to go on. Thanks!
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

Topic Author
justgettingby
Posts: 4
Joined: Mon Apr 15, 2019 11:40 am
Location: NY

Re: [Advice on investments?]

Post by justgettingby » Mon Apr 15, 2019 1:29 pm

Thanks articpineapplecorp. I'll work on the format. To answer your immediate concern on the "Other"
SMALL/MID-CAP IDX = 5%
Individual company stock = 5%

In my mind I also count the cash pension as a safe investment. If I count the cash pension and the bonds in the income fund I come up with approx 33% non-stock investments.

delamer
Posts: 7493
Joined: Tue Feb 08, 2011 6:13 pm

Re: [Advice on investments?]

Post by delamer » Mon Apr 15, 2019 1:37 pm

A key to determining the appropriate asset allocation in retirement is how dependent you’ll be on your portfolio to cover your expenses.

If you can meet your expenses with Social Security plus an annuity from your pension, then you’d invest differently than if you need to take substantial withdrawals from investments to meet expenses.

Topic Author
justgettingby
Posts: 4
Joined: Mon Apr 15, 2019 11:40 am
Location: NY

Re: [Advice on investments?]

Post by justgettingby » Mon Apr 15, 2019 2:46 pm

Reposting the format:
Emergency money = a couple of months worth.
Debt: still paying mortgage and have a car loan and CC debt (about 10K currently working on paying this off).
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 6.33% State
State of Residence: NY
Age: 62
Cash Pension = 1/5th of 401K bal.
401K mix:
INCOME PLUS = 30.00%
MODERATE = 24.97%
FID GROWTH CO K = 14.98%
LARGE COMPANY IDX = 10.03%
FID OTC K = 10.01%
SMALL/MID-CAP IDX = 5%
Individual company stock = 5%

Thank you for the responses so far.

User avatar
arcticpineapplecorp.
Posts: 3896
Joined: Tue Mar 06, 2012 9:22 pm

Re: [Advice on investments?]

Post by arcticpineapplecorp. » Mon Apr 15, 2019 6:56 pm

the suggested format has you list all of your 401k choices. I'm trying to determine how you decided to go with "income plus" which is a blended fund and the stock part of that fund is probably duplicating what you're holding in other funds (like the large company index, growth fund, possible "moderate" fund), etc.

the income plus has a load (for retail investors) of 5.75% (https://fundresearch.fidelity.com/mutua ... /66538G155). I'm assuming it doesn't in your 401k? (hopefully not).

How did you determine to add the income plus fund? Were there no other bond funds available?

What is the "moderate" fund? Is that also a balanced fund??

can you please go back and repost according to this:

viewtopic.php?t=6212

I know it's a lot of work, but we can't guess at different funds when we don't know the ticker, expense ratio, whether there's a load (or just the retail investor pays as in the case of income plus), etc.

You may have better choices than what you're in. You may be complicating things and duplicating. We don't know unless we have all the data.

How did you come to pick these specific funds?
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

Topic Author
justgettingby
Posts: 4
Joined: Mon Apr 15, 2019 11:40 am
Location: NY

Re: [Advice on investments?]

Post by justgettingby » Tue Apr 16, 2019 8:33 am

arcticpineapplecorp,

401K = low 7 figures (Company matches dollar for dollar up to 6%)
Current new investments and matching funds go into a ROTH account. I started the ROTH investment in January 2018.
Cash Pension low to mid 6 figures. Growth based on Treasury rate plus 1% since 2008. Before 2008 the company contributed.

401K TICKERS:
INCOME PLUS (unitized fund) 30.00%
MODERATE (unitized fund) 24.97%
FID GROWTH CO K (FGCKX) 14.98%
FID OTC K (FOCKX) 10.00%
LARGE COMPANY IDX (unitized fund) 10.03%
SMALL/MID-CAP IDX (unitized fund) 5.00%
International Business Machines (IBM) 5.00%

Here's some info on the income plus fund. It does not have a ticker symbol. The expense ratio is .08% and NAV is $3.71.
INCOME PLUS fund
Objective
The Income Plus Fund, a unitized fund, seeks returns that modestly but fairly consistently outpace inflation. The fund's target allocation is 28% stocks and 72% bonds, providing a simple way to achieve a broadly diversified holding of bonds with a small exposure to diversified stocks.
Strategy
The fund does not buy securities directly; instead, it invests in eight 401(k) Plus Plan funds: the Inflation Protected Bond Fund, the Total Bond Market Fund, the High Yield & Emerging Markets Bond Fund, the Global Real Estate Stock Index Fund, the Commodities Fund, the Total Stock Market Index Fund and the Total International Stock Market Index Fund.

I picked the Income Plus fund to invest more into bonds and to start moving some money out of stocks. I have plenty of BOND options available to me in my plan.

Here's some info on the MODERATE FUND. It does not have a ticker symbol. The expense ratio is .11% and NAV is $6.44.
Objective
The Moderate Fund, a unitized fund, seeks relatively high returns at a moderate risk level. The fund's target allocation is 35% bonds and 65% stocks, providing a simple way to achieve a broadly diversified holding of bonds and stocks.
Strategy
The fund does not buy securities directly; instead, it invests in eight 401(k) Plus Plan funds: the Inflation Protected Bond Fund, the Total Bond Market Fund, the High Yield & Emerging Markets Bond Fund, the Global Real Estate Stock Index Fund, the Balanced Exposure Fund, the Commodities Fund, the Total Stock Market Index Fund and the Total International Stock Market Index Fund. This gives the fund exposure to a broadly diversified group of U.S. and foreign stocks and various types of bonds. The fund's target asset allocation between bonds and stocks is 35% bonds, 65% stocks. The current target allocation is 12% Inflation Protected Bond Fund, 20% Total Bond Market, 3% High Yield & Emerging Markets Bond Fund, 8% Global Real Estate Stock Index Fund, 15% Balanced Exposure Fund, 2% Commodities Fund, 24% Total Stock Market Index Fund and 16% Total International Stock Market Index Fund.

I've been invested in the MODERATE Fund since 2008. The Avg return 10 Yrs +9.93%

Unitized Funds:
LARGE COMPANY IDX It does not have a ticker symbol. The expense ratio is .02% and NAV is $63.08. Avg Return 10 Yrs +15.93%
Objective
The Large Company Index Fund, a unitized fund, seeks long-term growth of capital and income from dividends.
Strategy
The fund holds all the stocks that make up the Standard and Poor's® 500 Index, in proportion to their weighting in the index. It attempts to match the performance of the index, which is a widely recognized benchmark of U.S. stock market performance, and remains fully invested in stocks at all times.

SMALL/MID-CAP IDX It does not have a ticker symbol. The expense ratio is .03% and NAV is $17.31. Avg Return 10 Yrs +16.53%
Objective
The Small/Mid-Cap Stock Index Fund, a unitized fund, seeks long-term growth of capital with a market rate of return from a diversified group of medium and small company stocks.
Strategy
The fund holds stocks in the Russell 3000® that are not part of the Standard & Poor's 500® Index and attempts to match the performance of the Russell SmallCap Completeness® Index. It remains fully invested at all times.

This is all managed under Fidelity Investments.
I'll update with additional info you ask for later today. Thank you!

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