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Explorer ○

Seeking Help

I am seeking help on my retirement portfolio. Late 50s, hope to work another 6-8 years. I believe that to be reasonable but who knows. No debt except for home mortgage, could pay it off. Retirement account below represents approximately 62% of current net worth. Wife and I should get good SS payments under current rules, but who knows. Wife will get a very small pension. I think I have made a mess of retirement accounts, we have worked hard to save, but I have not done a good job in investing. I think I have way too many funds. I have some real clunkers for example--Dodge & Cox Global and Fidelity New Markets Income. Below are funds and percent of retirement account.

Fixed Income--39.3%

 Stable Value current paying 3%7.4
ARTFXARTISAN HIGH INCOME FUND INVESTOR4.4
FADMXFIDELITY STRATEGIC INCOME FUND4.4
FNMIXFIDELITY NEW MARKETS INCOME4.2
MWCIXMETWEST UNCONSTRAINED BOND I7.1
PIMIXPIMCO INCOME FUND INSTITUTIONAL FUND8.5
SPHIXFIDELITY HIGH INCOME3.3

 

Equity 60.7%

DODWXDODGE & COX GLOBAL1.7
FDGRXFIDELITY GROWTH COMPANY28.9
FEMKXFIDELITY EMERGING MARKETS0.4
FHKCXFIDELITY CHINA REGION5.0
FIVFXFIDELITY INTL CAP APPRECIATION FUND2.4
FNARXFIDELITY SELECT NATURAL RESOURCES0.7
FOCPXFIDELITY OTC PORT2.1
FOSFXFIDELITY OVERSEAS4.1
FRESXFIDELITY REAL ESTATE INVESTMENT3.1
FRIFXFIDELITY REAL ESTATE INCOME0.9
FSCRXFIDELITY SMALL CAP DISCOVERY FUND5.3
FSLVXFID STOCK SELECTOR LARGE CAP VALUE FD0.8
FSMVXFIDELITY MID CAP VALUE1.9
MGGPXMORGAN STANLEY GLOBAL OPPORTUNITY A1.6
SFGIXSEAFARER OVERSEAS GROWTH & INCOME INV1.7

 

During 2008/2009 I just rode through it. For the current market decline I rode through it until very recently and moved some money into the stable value annuity paying 3% with no trading restrictions. I was so unexpectedly surprised at the markets comeback I wanted to move some money to a safe haven.

My apologies for this long winded post. I am with fidelity in their brokerage link account--basically any MF available through fidelity. Here are my questions

1) Should I simply my portfolio and get a smaller number funds. Which funds should I look at?

2) Should I eliminate poor performers like Dodge & Cox global now, or is that simply selling low?

3) I am not a trader, more of a buy and holder--should I go to 50/50 allocation. I am thinking that may be prudent during this uncertain time. What use should I make of the stable value fund paying 3%, is that a good place to hideout for a while?

That's a lot, any portion of help or what you have done is appreciated.

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7 Replies
Frequent Contributor

Re: Seeking Help

Meat,

IMO, you do have too many funds. Below is a reference for an 11 fund 50/50 portfolio which I used as my guide.

Rick dropped BRSIX years ago when Vanguard changed its total market benchmark which increased the number of smaller stocks.

I also dropped the TIPS and Hi-Yield fund and replaced them with PIMIX.


https://www.bogleheads.org/forum/viewtopic.php?t=37058


Cheers

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Frequent Contributor

Re: Seeking Help

Simplify and diversify.   

Concentrate on a few (2-3) diversified core funds.  For example:

Equity (60%):

Large Cap: FDGRX 30%

Mid Cap: FSMDX 10%

Small Cap: FSSNX 10%

International: FOSFX 10%

Except for FDGRX and FOSFX, I took the liberty of changing your actively managed funds to index funds.

You can de-risk to 50% equity/50% fixed income if you feel that is your risk tolerance.  Rule of thumb can be 100-age to 120-age depending on your risk tolerance.  

3% stable fund is a very good place to invest in this interest-rate climate, we have that, too.  I place a lot of cash there.

Just an input.  Good luck.

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Explorer ○

Re: Seeking Help

Bently and 51hh, thank you helpful responses. I am very open to index funds and wondered that I am not making enough use of them.

I appreciate any other comments.

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Frequent Contributor

Re: Seeking Help

If in same tax-deferred/free and taxable accounts, there are too many overlapping funds. Clarify if in different types of accounts.

If hold multisector bond fund [2], there is no need to also hold HY [2] and EM separately. Multisector already includes sovereigns, corporates, HY, EM.

Count SV among your FI allocation. 3%+ guaranteed rate is good and may be higher than 30-day SEC yield of some bond funds.

In equity, there are 7 foreign, global, EM, country funds. 2 LC growth. 

It isn't necessary to fill all M* style boxes and many small weights are just noise.

Etc

YBB
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Frequent Contributor

Re: Seeking Help

I’m a B&H investor, and I cut DODWX loose earlier this year. Their foreign investments (DODFX, DODWX) have been awful. Perhaps they should stick to the US.

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Explorer ○

Re: Seeking Help

Thanks Yogi, all one account.

Didn't know that about multisector--opportunity to clean things up.

Yes, I think one the several mistakes I made was too much global/international. I want some.

I think the "kind" of portfolio I have may make sense if someone is a bit of trader, moving around a lot, and staying on top of things. I have come to realize that is not me. 

For anyone who has done this clean up process, how did you go about it? Very quickly, slowly? Monthly movements out of funds into another?

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Frequent Contributor

Re: Seeking Help

Changes among similar assets are lateral moves and can be done quickly.

YBB
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