cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Follower ○○○

Holding American Funds on a broker platform.

I'm helping a friend set up for RMDs...probably on broker platform...and I'm inclined to suggest BALFX to hold the lion's share of her rollover IRA (IRA+SEP funds). It's my understanding that the F1 shares have no load, carry only a slightly higher expense ratio than the A shares (7 basis points more, it appears), but otherwise carry all benefits of the original fund and are easy to purchase via a broker mutual fund marketplace. Am I correct?

Also...

Does anyone here hold any American Funds through a broker...and is there anything I should be aware of when buying them?

Is there a different American Fund that would be a worthy alternative to American Balanced? If she were OK without a bond component, I'd be tempted to have her look at New Perspective, which I used to hold in my 401k (currently have AMCAP and EuroPacific)...is there an F1 share version of it?

By the way, I asked similar questions on the Allocation Fund forum, but thought that American Fund fans might have unique insights.

Thanks for all responses.

Dirk

0 Kudos
6 Replies
Highlighted
Explorer ○○○

Re: Holding American Funds on a broker platform.

DIRKRONK:

 

Good Evening.

 

F-1 Class of New Perspective is NPFFX.

Look @ TAIFX [ Also a F-1 Class Fund], as a compliment, or in addition to, or instead of BALFX. 

Or take a peekaboo at all The Portfolio Series Mutual Funds on the American Funds carousel.You might find something to your liking to suggest to your Friend.

 

Good Luck.

 

Signed,

 

NoFriends1

 

0 Kudos
Highlighted
Contributor ○

Re: Holding American Funds on a broker platform.

Take a look at INPFX, one of the portfolio series of funds.  I don't own it, but I've followed some of the American Funds for a while, and this one has long piqued my interest.  I haven't seen him post lately, but ALLIND used to post about the funds, and he seemed to be highly knowledgable about the funds, and had quite a bit invested in them.  I had asked him about INPFX and saved his response: "Seems to be a nice mix of funds that provide current income and looking to grow the dividend.  You would have 55% equities (16 % foreign) and 45% cash and bonds".

I don't think this would be a deal-breaker, but be aware, if you are not already, that the F1 series of funds available on the broker platforms carries a 0.25% 12b(1) charge.  

The balanced fund you mentioned has had what seems to me to be an outstanding performance, and it is certainly worthy of consideration.  I think INPFX might be a milder, more conservative version of a balanced fund.  Probably can't go too far wrong with either one.

0 Kudos
Highlighted
Contributor ○

Re: Holding American Funds on a broker platform.


@dirkronk wrote:

I'm helping a friend set up for RMDs...probably on broker platform...and I'm inclined to suggest BALFX to hold the lion's share of her rollover IRA (IRA+SEP funds). It's my understanding that the F1 shares have no load, carry only a slightly higher expense ratio than the A shares (7 basis points more, it appears), but otherwise carry all benefits of the original fund and are easy to purchase via a broker mutual fund marketplace. Am I correct?

Also...

Does anyone here hold any American Funds through a broker...and is there anything I should be aware of when buying them?

Is there a different American Fund that would be a worthy alternative to American Balanced? If she were OK without a bond component, I'd be tempted to have her look at New Perspective, which I used to hold in my 401k (currently have AMCAP and EuroPacific)...is there an F1 share version of it?

By the way, I asked similar questions on the Allocation Fund forum, but thought that American Fund fans might have unique insights.

Thanks for all responses.

Dirk


Note that anything I respond here (or anywhere) about AFs is subject to review and correction by ALLIND.

I own WSHFX, NPFFX and BALFX, and have owned TAIFX, all thru a broker.  All of these are F-1 Class and available at Fido, NTF, l/w.

I became a big fan of AFs when they widely became NTF, l/w, and after reading countless (and now sorely missed) posts by ALLIND about their, well, about everything about them. 

His posts lead to my own pretty extensive DD on the family, and I selected the following stock & allocation funds as great fits for my port.  I did not identify any AF bond funds better than what I own and have never owned one.  YMMV. 

WSHFX - A LT ALLIND fave, arguably one of the best US LCV funds out there. Can't ever imagine selling this fund.  

NPFFX - Works extremely well for me as my only World LCG holding and expect it to continue as such indefinitely.  

BALFX & TAIFX - I own a few allocation funds, PRWCX, FBALX, JABAX, BALFX, VBIAX and VWIAX, and have held TAIFX off-and-on, currently off. 

BALFX is a very good 50-70 allocation fund, but it has not been as kind to me as the others listed here in its category. Still arguably one of the best in its category and why I own it. 

The VWIAX holding could just as easily be TAIFX, or split between the two, but is currently all VWIAX largely based on account location.  I will likely be adding TAIFX back to my port at YE rebalancing.  I regard VWIAX and TAIFX as two of the best in their category.

 

0 Kudos
Highlighted
Explorer ○

Re: Holding American Funds on a broker platform.

I would not have a problem investing in either American Funds Balanced Fund or TAIFX if it is held in a taxable account. I have a strong relationship with all the equity funds...I sleep well at night , but that's just me. American funds is a good fund company, or we (me and wife) would not be invested here. Al is missed here, but it is his decision to not offer good advice for whatever his reasons are.....

festus

0 Kudos
Highlighted
Explorer ○

Re: Holding American Funds on a broker platform.

The American Balanced fund and the New Perspective fund are very different. I suggest that your friend decide what category of fund is right for her.  The Mutual Funds page at the American Funds web site has a list of funds by category

Because you mentioned setting up for RMDs, a balanced fund, like American Balanced, is likely a more conventional choice than a growth fund, like New Perspective. If the funds in the balanced category have a higher bond allocation than desired, consider funds in the Equity-Income category.

0 Kudos
Participant ○

Re: Holding American Funds on a broker platform.

New Perspective Is about half international. I like that as well as it’s performance. I have a significant investment in it within my IRA.

0 Kudos
Announcements

Morningstar is here to help you respond to the Coronavirus crisis.