Dow Plunges 387 points today

[Crabcake Johnny]

You're also not dealing with fund manager's ego's who wants to be "manager of the year" or the flawed and proven fact that even fund managers cannot correctly predict results. That is proven by the fact that 75% of all funds cannot beat the S&P. So if you can't be 'em, join 'em.

Nothing will destroy your retirement savings more than a "flavor of the month" mentality of "which is the hottest stock now." Also, nothing will destroy your retirement savings like something "safe" that returns 5%. It's especially bad if when you take into account that 5% at 3% inflation is 2% and if you have even 1% in fees it's a whopping 1% net. Again, just get a shovel and coffee can.

 

[Macdaddy]

You're also not dealing with fund manager's ego's who wants to be "manager of the year" or the flawed and proven fact that even fund managers cannot correctly predict results. That is proven by the fact that 75% of all funds cannot beat the S&P. So if you can't be 'em, join 'em.

Nothing will destroy your retirement savings more than a "flavor of the month" mentality of "which is the hottest stock now." Also, nothing will destroy your retirement savings like something "safe" that returns 5%. It's especially bad if when you take into account that 5% at 3% inflation is 2% and if you have even 1% in fees it's a whopping 1% net. Again, just get a shovel and coffee can.

I totally agree. I think the number is actually around 90% of MF managers are losers to the Index Funds over a 10 year periods. Academic studies show that the latest fund manager that is leading the pack is just "lucky" for a period of time. The studies have shown that he might be in the top 50 for several years and then number 400 or 500 for several years.

However there is a great strategy to capitalize on these lucky bastards. It is a mutual fund rotation strategy that has beaten the Indexes quite nicely. I utilize this strategy for my qualified funds. I am still a big believer in Indexing for most folks however because it is easy to employ for the average guy.

You can take a look at this monthly rotation strategy here:

Welcome to NoLoad Fund*X and look at the Class 3 strategy.

Over the last 30 or so years it has averaged 17.8% vs 13.2% of the S&P.

My value fund strategy has averaged 21% plus dividends over 30 years, but has more volatility so it is a bit more of a rocky ride.

 

[Crabcake Johnny]

Also remember that retirement is being re-defined. Retiree's will need to re-think their allocation as the life span increases. Plan in retiring at 65 and living into your mid 80's and now all of a sudden the money has to stretch for 20 years. That would mean a shift in strategy that now states that most if not all the money gets placed in "safe" investments. People who are retiring now will still need some capital growth.

 

[J.R.]

I am reducing my risk by using hedge funds. The hedge funds I select have a low correlation to the stock market, that is what makes them less risky. You apparently have bought into the "sleaze" factor that the liberal media has placed on all hedge funds. They ain't all sleazy, and banks and institutional investment firms are the biggest customers pouring billions into them.

I usually find it it is better to ask than to assume. You conveyed a correlation of higher risk to hedge funds in your post to John P. and others, which is I why I asked you a question in the previous post to clarify things. I did not say hedge funds present a higher risk. Each fund has it's own pro/cons.

As I have indicated in numerous posts, I don't watch the news unless a friend or associate tells me there is something of interest. Secondly, I never buy into anything without looking at all angles. I surmise that the X factor there would be how my was interpreted. I should have clearer.

I appreciate you sharing some of your portfolio gains/losses with us.

 

[Macdaddy]

As you can tell, I love talking strategies, returns, and risk vs. reward. I passed my series 65 back in January and am working on opening my own RIA this year.

My father(whom I don't know) owns his own RIA and manages 40 million or so in Louisville. I guess a love for money management is in the blood(Jewish blood that is).

 

[senior-advisor-indiana]

As you can tell, I love talking strategies, returns, and risk vs. reward. I passed my series 65 back in January and am working on opening my own RIA this year.

My father(whom I don't know) owns his own RIA and manages 40 million or so in Louisville. I guess a love for money management is in the blood(Jewish blood that is).

That explains alot.

 

[J.R.]

As you can tell, I love talking strategies, returns, and risk vs. reward. I passed my series 65 back in January and am working on opening my own RIA this year.

My father(whom I don't know) owns his own RIA and manages 40 million or so in Louisville. I guess a love for money management is in the blood(Jewish blood that is).

I didn't know there were any jews in Ohio. I'll have to talk to my family about that one. Most of us are in NY, NJ and CA...

 

[senior-advisor-indiana]

Their is one in IN that likes to rip agents off.