re: Random Money/Business/Finance Thoughts Thread

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Redstick, what do you think about this income fund?

This is for a Roth, where I'm just looking for income (want to eliminate downside risk). My 401k has all the equity exposure. Seems very well-managed and consistent.

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First consider why you are deciding which securities to place in which account. The Roth, unless you are using it for emergency cash, should hold securities with higher expected returns to maximize the future value of the account and future tax free withdrawals in retirement, the 401k is better suited for taxable income producing securities.

VWINX is a fine fund, it has weathered numerous bad times and still fared well. Vanguard Retirement Income fund (VTINX) is a more diversified balanced fund 35%E/65%FI that utilizes indexed products plus TIPS. You would have to determine whether you have an aversion to owning a fund with relatively few companies representing the equity component or desire wide diversification.

I own both. Starting in this environment of poor bond yields I would opt for VWINX due to the equity dividend opps versus lower yielding equity indexes, but the total return optimists would poo poo this concept. Management also has more opps to manage w/i different segments of the bond market/yield curve as compared to being tied to only the total bond mkt and TIPS funds.

I saw your other post on HY funds but didn't get to respond due to ongoing weekend festivities. VWEHX is a less risky HY fund and is probably OK if making systematic investments, but you could do better with something else, that fund has had steady NAV erosion over the years. I saw JT's response, I own ACG which is a CEF, not saying it is the end all, be all but has done well the past few years. Think you would be better off finding a discounted CEF with reasonably safe holdings than HY, or develop a better/less volatile income producing equity alternative paired with HQ short duration fixed income than HY unless you can catch it on a good dip like Aug/Sept was. Some doubt the concept I bring up about mkt timing/tactical allocation w/i 401k plans, but your risk adjusted returns could/should be much better in a volatile investing climate, and momentum in an uptrending mkt. YMMV.

This is all meant to be factored into a diversified retirement plan. All the financial writers bashing TIPS and supposed negative yields this year were made to look foolish by what has transpired. I do not recall when it has been this difficult to estimate future returns of asset classes, many balanced or bond funds over the last ten years have obviously benefited from falling bond yields, the near future does not look promising in that respect.

Go to Morningstar and comparison chart the options mentioned with 'Growth' selected to see total return overlay.

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Just registered for the CFA in June...at least that'll give me something to do during the off season...

BUMP.

Problem solved -- the lock has been removed.

Last I heard, THF was in the heart of the OWS riots in NYC tonight. We may not here from him again.


My work has been a steady 50-65 hours a week, not all that bad. Had some big projects wrap up so kinda cruising into the holidays now. Company holiday party this weekend

I have gone into the heart of the beast (wearing a suit to boot) and I have returned. Chronicles to come later.

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I have gone into the heart of the beast (wearing a suit to boot) and I have returned. Chronicles to come later.

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I heard many intelligent discussions were had. I walk through their shithole encampment here everyday on my way to lunch. They gave me a copy of the "Boston Occupier" newspaper the other day, interesting read.

Hit curb, tires purchased about 20 pages back = destroyed. God f'n dammit.

Warranty, bitches. mfwin. We actually have a driver to/from the airport for client trips.