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as i mentioned a few times i have been tracking an interesting looking low cost etf model portfolio for a few months now.
we are looking for a 40-50% equity position since we are retiring and have cut back our aggressivness years ago.
i am tracking the etf model against the fidelity models i have been using for years. the expenses run higher with the fidelity models so i would like nothing more than to see the etf model pull a head .
i would make the switch over a few years to ease the tax bill. because of some real estate sales this year i do not want to add any more taxable sales so anything i do will be next tax year.
anyway to date the 2 portfolios got the closest ever a few weeks ago before the etf fell behind again . a few feeks ago they got pretty close to each other since the etf fell about 14k and made it back up to being only 3k behind .
as of the close friday the etf model is back down to 12k behind the fidelty mix..
i will update the results every month.
for comparison i have 2/3's in the fidelity insight income model and 1/3 in the fidelity insight growth and income model.
since we pay for subscription advice i can't disclose the actual holdings ,but here is the etf as i structured it.
both are holding 2 years withdrawals in cash instruments and started with equal amounts.
keep in mind the etf model is not designed as much for growth as for lower volatility, inflation protection and income.
the retirement portfolio i find interesting is :
2 years of withdrawals in cash in bucket 1. that is about 8% of the total
guy from insight/monitor thinks you get your money's worth with fidelity, I believe that was your position as well.
I have personally used their portfolios and made my own adjustments. I also made an effort to reduce my # of holdings so I knocked off some of the funds and also moved out of some of their stuff into some ETF's to reduce my taxes.
whatever works for you. it isn't their picks are so good. it is the discipline of letting them call the shots that makes it work for me.i always think i can do better and i know me. i would try to time,tinker and always think about my next move.
not ever thinking about this stuff anymore or in fact the last 25 years makes it priceless . there was a time i thought about my next move 24/7
Really interesting comparison, and it's
good to see some of the Funds that
you've been interested in.
Also, seeing your using the
Three Bucket system.
I'm getting closer to my Retirement
and this has still been the system
that for me will give me the most
confidence in our retirement years.
Thanks again for sharing, Take Care,
CK
it is only a model i am tracking , never used it.
here is another model geared towards a retiree from bob clyatt.
20% VFINX S&P500
8% VTMSX Tax Managed Small
6% VGTSX Total International Equity
10% VINEX Internat'l Explorer (small)
6% VEIEX Emerging Markets
30% VBIIX Intermediate Bond Index
11% BEGBX International Bond
5% VGSIX REIT Index
4% Money Market Fund
whatever works for you. it isn't their picks are so good. it is the discipline of letting them call the shots that makes it work for me.i always think i can do better and i know me. i would try to time,tinker and always think about my next move.
not ever thinking about this stuff anymore or in fact the last 25 years makes it priceless . there was a time i thought about my next move 24/7
It isn't just their picks but the timing of when to get in and when to get out of specific funds. Bottom line is can the individual do a better job of picking and timing over time. I suspect most can't, absent index investing or another model.
july comes to a close and the etf portfolio got pounded. the 1/3 fidelity insight growth model and 2/3 the fidelity insight capital preservation model were within about 2k of each other last month with the fidelity portfolios up 70k and the etf portfolio up 68k.
well july brought the fidelity model down to just being up up 38k and the low cost etf model only up 6700.00..
that is the widest spread yet at 31k difference between the two .
I think it was about 2.5 or 2.6 million but each model also contained a few years of withdrawals in cash which was a few hundred thousand just simulate what a full plan make look like.
I started looking in to a model made up of etf's put together by christine benz back in april.
When i got the idea to possibly switch to a 50/50 etf mix from my 40% equity combo i set both portfolios to zero gaiins so they started even on the same day.
No question the etf mix will outperform the more conservative mix i use in a
bull market. The big question is what will we have going forward.
Last edited by mathjak107; 07-31-2014 at 05:08 PM..
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