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Re: cgin131 asi12  06-25-2008, 7:40 PM | Post #2532588
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Some of the suggestions mentioned earlier are very aggressive for your age as mentioned by Oildog too.

I am half of your age, I even don't touch broad EM market fund (like SSEMX) in a IRA becasue there is no tax deduction for any losses (in general, there is complex way if you want a tax loss in an IRA).

 I would first want to establish risk to define allocation to fixed income (cash, bond etc) and equity. Some books have suggested 110 or 120 - age +/- 10. If you are conservative, 110 -60 = 50 which is about Oildog has also mentioned too.

200k is good amount of money, but I don't think income (distributions and capital gains) from this investments will push you in much high tax bracket. I would keep more safe investments like cash/CD/Bonds in a IRA and equity in taxable account. Taxes both capital and tax rate probably going to go higher next year which are predicted by many news columns and in this case it has been suggested it does not matter where do you keep bonds or equity for the tax purposes. I am no tax expert, so please do your own due diligence for your own situation.

 For bonds I like LSBDX/LSBRX (it has every thing whatever manager finds attractive), HABDX (intermediate bond fund), PAAIX (it is more diversified but in terms of returns it is not any better than other two. It was popular funds here, I never owned it but may be others can provide you better insight.

Many diversified foreign funds have EM exposure, so you may want to consider them rather than BRIC fund.

For your assets, transcation fees would be important, so you either stick with NTF funds or buy directly through mutual fund companies or buy it at a brokerage where they allow free trades for transcation fee funds. I think you need to ask this question to others as I have not done it myself.

Good choices for equity:

OAKBX

OAKGX- may be good if if you think there is oil bubble and going to brust.

HAINX- Institutional shares for this fund can be bought for $50000. It is my favorite and I don't have 50K right now to buy it otherwise I would have done it. Its manager was named morningstar fund manager of the year. Even its YTD performance is better than many peers.

LLINX, good fund, reasons it don't like it because high ER. They don't do currency hedgeing (I think), which may be good when dollar is rising slowly.

DODWX

LLPFX, recently opened and very good long term return. $10Kminimum to buy it.

OAKEX, great fund, I bought it in my Roth IRA few months ago and it is already up close to 6%. I have not checked most recent numbers.

TAVFX, it has good overlap with other third ave. funds like TAVIX (mentioned above), TAREX and TASCX.

For aggressive investing, UMBIX (if it is still open)

Basically I think you may want to consider growth and income funds.

I just can't propose exact magic percentages for you as I don't have them for me either. I just buy great funds. Please do your own due deligence, I am not finance expert, there are just few ideas.

Controversial Idea:

On the other hand you may want to consider good stock like GE, it is yielding more than 4% and according to many recent finance articles its dividends is as safe as bonds. Stock has been down more than 30% from its peak 6 or 7 months ago. Some food for thought.

Topics growth and income intermediate bond IRAs Roth IRA tax rate View Complete Thread
 
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