American Funds - EDJones

or Register to post new content in the forum

13 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Sep 3, 2008 12:40 pm

I never thought I would do this, but it is what it is.

 
I am setting up a Simple IRA for a client's wife.  She is in her mid 30's.  I am using American Funds...ugh.
 
How would you Jones guys allocate an American Funds portfolio by percentages?
 
Thanks.
Sep 3, 2008 1:13 pm

Snags, I’m not a Jones guy. 

  If I'm setting up any account that has small dollars, I want it to be easy and with as little maintenance as possible.  For an account like this, it would probably mean 100% of the money going into a target date retirement fund like the 2040 fund.
Sep 3, 2008 1:57 pm

I’m not Jones either, but I agree with Anon on the easy & little maintenance.  100% to a world allocation fund, Capital Income Builder.

Sep 3, 2008 7:27 pm

CAIBX is a good idea for someone young, and using just one fund. Not many allocation funds do as well over the long-term.



Not sure, but I don’t think you can use American’s Target-date funds in a SIMPLE. I think you can only use them in American 401K’s.

Sep 3, 2008 9:25 pm
B24:

CAIBX is a good idea for someone young, and using just one fund. Not many allocation funds do as well over the long-term.

Not sure, but I don’t think you can use American’s Target-date funds in a SIMPLE. I think you can only use them in American 401K’s.

I think that only applies at Jones.......
Sep 4, 2008 12:43 am

What does it matter if you only use one of them or 4 of them, they all hold the same stocks and are all correlated at .80 or higher. 

Sep 4, 2008 9:01 am
BullBroker:

What does it matter if you only use one of them or 4 of them, they all hold the same stocks and are all correlated at .80 or higher. 

  That is the case if you don't know WTF you are doing. 
Sep 4, 2008 11:52 pm
iceco1d:

[quote=B24]
Not sure, but I don’t think you can use American’s Target-date funds in a SIMPLE. I think you can only use them in American 401K’s.

  Can anyone confirm/deny this for sure?  Is this an EDJ thing, or a AMF thing?[/quote]   I just sent the paperwork to the client.  You can definitely do Target-date funds in a SIMPLE, but they have to be A shares.  It's an EDJ thing.
Sep 5, 2008 6:53 am

I’ll also confirm that it’s not an American Fund things.  Target date funds must be “A” shares and must be in retirement accounts.

Sep 5, 2008 2:38 pm

Not a jones thing - it just has to be held at the fund company or least it did a few months ago.

Sep 7, 2008 11:34 am
B24:

[quote=BullBroker]What does it matter if you only use one of them or 4 of them, they all hold the same stocks and are all correlated at .80 or higher. 

  That is the case if you don't know WTF you are doing.  [/quote]   Why would you say that I don't know WTF I am doing?  If you need I am more than happy to show you how correlating investments add nothing to your returns. 
Sep 7, 2008 9:53 pm

I didn’t say YOU don’t know what you’re doing. I meant that if someone DOESN’T know WTF they’re doing, you can easily build an overlapping portfolio at AMF. But if you DO know what you’re doing, you can also build a good portfolio that does not have significant overlap/correlation. I meant “you” in general terms.

Sep 7, 2008 10:27 pm
B24:

I didn’t say YOU don’t know what you’re doing. I meant that if someone DOESN’T know WTF they’re doing, you can easily build an overlapping portfolio at AMF. But if you DO know what you’re doing, you can also build a good portfolio that does not have significant overlap/correlation. I meant “you” in general terms.



My bad had a ruff College football Saturday