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really ? I have been with fidelity insight as a subscriber since 1987. fund changes are rare as most strive for at least a 1 year hold . the insight growth model was my portfolio for decades .
they have nothing to do with fidelity either other than use fidelity funds . these are all independent newsletter that have no relationship to fidelity .
soooo wrong again .
ya know...2 people sent me private messages warning me about you and now I'm realizing that although you have interesting insights, you're like the guy at the end of the bar that just keeps talking....
Managers don't beat the market over time..thats a fact...I thought it was common knowledge......if you over time have found some way to trade mutual funds to significantly outperform the averages then you should definitely write a book as nobody else has done that
managers do not have to beat the markets . portfolio's do .
in fact using funds through their sweet spots can have none of them beat the market but the total portfolio sure can . as an example when the dollar was weak fidelity export and multinational was the place to be .
once the dollar soared it was not the place to be . so by swapping it out it does not matter at all whether the manager beat the market . you only held it when it's time was in the spot light . but that is only one of usually 5 or 6 different diversified funds that make up the model . if they guess wrong once in a while it does not matter .all they have to do is be right more than wrong .
i have generally bought into the idea that managers cant beat the market and even if some can, most people wont be invested with the handful that will beat the market. on top of that, i hate distributions that force me to pay taxes. i want to pay taxes on my schedule (and i want to pay long term rates, not short term rates). so that advantage plus the little likelihood that i am going to beat the market draws me to index etf's.
back in 2007 I made major portfolio changes as I started to shift from my growth model to my retirement model since I was planning to retire much earlier than I did .
the fact I paid some taxes along the way and did not have decades of pent up taxes to deal with let me make the changes by the end of 2007.
had I had to deal with the pent up taxes I likely would have had to split the changes up over 2 years .
that would have had the other half being sold off in 2008 ,taking a beating .
so sometimes it is good to really do both types of funds .you don't want a tax torpedo if you make changes later .
Location: Was Midvalley Oregon; Now Eastside Seattle area
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At age 66/69 we do all of the above. Some more than others. Very little ETF/MF now. More annuities and rental now. Increasing stocks because of my trading prowess but moving towards cash for purchasing a downsize home in a high COL area.
Investing in individual companies via stock has been has been longterm winners. I trade within IRA/Roth because we didn't have much taxables and I made money in the IRA/Roth accounts faster than the taxable accounts.
ETFs/Indexes/MF have come in second in growth. Most of our money went into this in the form of IRAs/401k.
Home and property RE have been at times illiquid. I expect home appreciation to be inflation rate on the 35 years of ownership.
Rental condo in Seattle has appreciated by 25% in the one year of ownership, according to Zillow.
Annuities are for Income, not for investments. Actual/Real Value Accts would match a 60/40 allocation and expected Income would approximate a 5%-6% total yield.
we also have LTCi and small student loan debt (financed son's education) which allows us to be more invested.
this did not happen all at once but in spurts and phases.
rental is from an unexpected inheritance.
YMMV
Last edited by leastprime; 08-17-2016 at 05:16 PM..
ya know...2 people sent me private messages warning me about you and now I'm realizing that although you have interesting insights, you're like the guy at the end of the bar that just keeps talking....
Managers don't beat the market over time..thats a fact...I thought it was common knowledge......if you over time have found some way to trade mutual funds to significantly outperform the averages then you should definitely write a book as nobody else has done that
nonsense ...... really ,, i suggest you look at fidelity contra , fidelity growth company , fidelity blue chip growth , and those are just the ones i owned since i use fidelity , i am sure other fund families have done the same . . compare them to a total market fund and report back , tell us all what you see .
morningstar found when they took the 20% biggest mega managed funds with the most dollars , they found 80% have beaten their index's long term .. those are damn good odds .
it isn't managers can't beat their index's , they can . but many funds are small and the expenses eat up their alpha . so one year they may be on top and next year the bottom . but that does not apply to many mega funds which seem to win over most time frames ..
so we will wait for you to report back , you can compare right on morningstar .. i will even give you the symbols , fcntx , fdgrx and fbgrx
fidelity insight growth model vs the s&p 500 which is very very close to the results of a total market index fund .
Last edited by mathjak107; 11-30-2018 at 02:12 PM..
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