mutual funds

Portfolio Report Card: A $671,459 Retirement Plan with Taxing Problems

In this new and first episode of the Portfolio Report Card, Ron DeLegge, Founder at ETFguide analyzes and grades a $671,459 retirement portfolio for B.L. in Spokane, WA. Many investors still don’t understand the difference between an architecturally sound investment portfolio versus one that’s not. And the Portfolio Report Card is designed to identify strengths …

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3 ETFs in Your Portfolio: Is it Enough?

This is an excerpt from the video titled Is a 3 ETF Portfolio Enough? with Ron DeLegge at ETFguide and Andrew Kadjeski at the Vanguard Group. Ron: The U.S. ETF Marketplace has grown to just over 2,350 ETFs with $4.4 trillion dollars. And with a marketplace that’s become this crowded, it’s created both chaos and …

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Investing great John Bogle: “Here’s how to use ETFs!”

Note: This 2013 interview between Ron DeLegge at ETFguide and John Bogle from the Vanguard Group is from ETFguide’s archives of investing greats. Bogle passed away on January 16, 2019. Hi everybody. I’m Ron DeLegge with ETFguide.com and we’re pleased to have with us John Bogle, founder of the Vanguard Group, author of many books, …

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Avoiding the Mutual Fund Tax Trap

Earlier this week, the Wall Street Journal (WSJ) observed a problem that our readers have long known: mutual funds have a major structural flaw that exposes shareholders to unwanted and unnecessary tax liabilities. Moreover, this flaw should be of acute interest to anybody anywhere that owns a mutual fund – even ones that purport to …

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3 Diversification Errors

Portfolio diversification is an investment strategy designed to limit risk by spreading money across multiple asset classes and securities. Most financial literature along with your local financial advisor will agree that diversifying your investments is a prudent thing. But while diversification may seem like a straightforward process, it isn’t. And some investors and their advisors …

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How Safe are Bonds?

News flash: Investors who assumed their investments in conservative bonds and bond funds (Nasdaq:LSBRX) were safe from losses are learning otherwise. Since mid-2016, the performance for U.S. bonds (NYSEARCA:BND) with top credit grades have sunk almost 4%. For perspective, the 12-month yield on ETFs tracking the Barclays U.S. Aggregate Bond Index is just 2.40%. Put another …

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(Podcast) How to Predict Fund Performance

The phrase “past performance is not an indicator of future performance” is a frequently written and spoken legal disclaimer for virtually all investments sold by Wall Street. Yet, hardly anyone from individual investors all the way to investment sales people really act like they believe it. Asset flows inevitably gravitate into funds with the hottest historical performance. And …

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Fund Shareholders with SunEdison Get Zapped by Bankruptcy Filing

SunEdison now joins the endless parade of defunct stock market ex-darlings like Enron, eToys, IndyMac, and Washington Mutual. Yes, the circumstances are different, but the results are the same: bankruptcy. Once the largest renewable energy developer in the U.S., the Missouri-based company listed $16.1 billion in debt in its Chapter 11 bankruptcy filing on April 21. SunEdison might …

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Monster Tax Bills

Portfolio Report Card: Analyzing a Frugal $1.15 Million Account

Today, there is a singular focus by certain investors on minimizing investment cost. In their world, cost is the only thing that matters. Unfortunately, this exceedingly narrow view fails to acknowledge that curtailing your portfolio’s cost is only part of the overall puzzle for obtaining satisfactory investment results. What do I mean? Think about it …

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Race Cars 2

Portfolio Report Card: A $496,000 Investment Plan with an Adventurous Flair

All investment portfolios are comparable to a novel, where each individual chooses their own personal genre and classification. If your investment portfolio was a novel, what genre would it be? Adventure? Comedy? Drama? Mystery? Horror? My latest Portfolio Report Card is for MD in Temecula, CA and he’s got an adventurous portfolio. He’s also 61-years …

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Portfolio Chart 1

Worst Performance for Stock Pickers in 30 years? Here’s What to Do About It

Isn’t it more than ironic that of all the times stock picking fund managers would post their worst multi-decade performance – that it would be smack dab in the middle of a raging bull market? Never mind how the S&P 500 (SNP:^GSPC) is about to record its fifth consecutive yearly gain and ninth gain out of the …

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Headache

3 Signs Your Mutual Fund is a Looming Tax Headache

Even if you don’t sell your mutual funds in 2014, you could still be on the hook for a hefty tax bill. The good news is you can limit the tax bite by paying attention to what’s going on with the funds you hold in your taxable investment account. Fund companies regularly distribute dividends (Nasdaq:VDIGX), bond …

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Portfolio Management 3

Portfolio Report Card: A $200,598 Retirement Plan Stuck in Neutral

Whenever we begin a journey, the excitement of getting started frequently overtakes us. We begin with unrealistic expectations and end disappointed. The investing experience of many people follows this unfortunate pattern. If you’re in this situation, there’s hope. Before I do a Portfolio Report Card for J.W. in Nashville, TN, here’s some background on him: …

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Warren Buffett is Once Again Doing the Opposite of the Crowd

The disdain for cash is nearly universal. Cash instruments like money market funds are yielding around 0%. And nobody needs or wants cash because stocks are up. The S&P 500 (NYSEARCA:IVV) just rallied 3.8% in August, almost one-third its year-to-date (YTD) gain of 9.73%. AUDIO:  Listen to Ron DeLegge @ The Index Investing Show Performing …

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Slow Turtle

Portfolio Report Card: A $408,303 Retirement Account Stuck in First Gear

World-class investment portfolios deliberately minimize taxes and investment costs. Likewise, a well-built portfolio is handcrafted to perfectly match the unique investor personality of the individual. Since May, I’ve already executed Portfolio Report Cards on $10.6 million in investments and too many investors are still coming up short. This time around, my latest Portfolio Report Card is for S.G., …

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What’s the Proper Way to Measure Your Portfolio’s Performance?

Have you ever wondered why mutual funds that have 80% of their exposure to U.S. stocks (NYSEARCA:SCHB) and the other 20% to international stocks (NYSEARCA:EFA) are still measuring their performance versus the S&P 500 (NYSEARCA:VOO)? Shouldn’t they be using a blended 80/20 passive benchmark to do a proper apples-to-apples measurement? Why don’t they do this? …

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3 Big Shortcomings of Target Date Funds

Around 41% of all 401(k) savers have are using target-date mutual funds (TDFs) and the numbers keep rising. Experts in the financial services industry applaud this trend, but are target-date funds really the panacea to a secure retirement income? TDFs attempt to match a person’s age and risk tolerance with a projected retirement date. For …

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