Income Funds

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Jan 18, 2011 6:15 pm

Can anyone offer any suggestions on income funds with equity exposure they use?  I've been using Captial Income builder and had used Franklin Income fund in the past but didn't moved away from them. Anything else out there with solid returns and good history?

Jan 24, 2011 12:32 am

FWIW, I use VBMFX for my clients income allocation. It has solid returns and a great history, but no equity exposure because I don't use equities for income.... I hope someone else has a better suggestion.

Jan 24, 2011 12:24 pm

MFS Total Return has a very long history, a very mechanical 60/40 fund. For the most part, they've actually been able to beat the sp500 with significantly less risk. The bond side is usually of fairly high quality, unlike Franklin where they use mostly lower rated issues. MFS still has A, B and C shares too.

Jan 24, 2011 2:00 pm

I'm using MFS Total Return, and Global Total, almost exclusively for small C share accounts and such.

(Small account) basic wrap could be VT plus BND. 1.5% fee at less than 100k includes basic ongoing financial planning.

No one can be prove that they consistently (over a couple of decades) can beat 60% stock and 40% bonds (if client can handle the volatitily and stay invested, which is questionable).

Otherwise, go with less stock. Manually rebalance wrap accounts. End of story.

Jan 24, 2011 2:04 pm

The old WM Group of Funds, formerly a division of WAMU Bank... Sold to Principal Group in about 2006. Their "SAM" funds have been very good since 1994. Have a fair amount of money in those. They are very good asset allocation funds, and have done EXACTLY what they are supposed to do. BUT.... PG now is making some pretty serious changes to them, adding categories and elements that scare me. I don't like complicated, I don't like change, and I have serious trust issues with packaged product companies....

The original master of the process Randy Yoakum is back I guess, after a non compete. I'd like to see what he creates. Randy was a very honest straight shooter type, and I'd gladly do biz with his new firm when I figure out where he's at. 

Jan 24, 2011 2:07 pm

http://online.wsj.com/article/SB10001424052748703848204575608623469465624.html?KEYWORDS=buy+and+hold+is+still+a+winner

Jan 24, 2011 2:49 pm

The MFS total return is a good brand, consistent performer. I'm not saying "my way or the highway", I'm just saying, we all want to add value and be paid, so keep it simple and focus on what's important.

I remember some real dogs of the past that had great stories and track records. Like, Oppenheimer Quest - I guess the manager got to the end of his career and lost interest or lost his touch or something. Why count on someone else to deliver value, better to take that out of the equation. If you believe in actively managed mutual funds, you are already taking individual security risk (stock picking) out of the equation for yourself. Why not go a step further and deliver value from other places (like, financial planning)?

The problem with active management in fixed income is, the margins are so thin, how are you going to get paid for yourself? Unless you are managing a ton of money, suck up to management and inherit a bunch of accounts from the other RRs that blow out. Then you can afford to be a bond trader.

Then you are faced with market timing, unless you hold to maturity, in which case you are basically an order taker. So much BS, everywhere, and so little appreciation of it by the clients and next generation of planners who need to get paid in order to stay in business.

Apr 11, 2011 3:52 pm

Thanks guys great info

Apr 11, 2011 6:07 pm

Karen, and Retirement Guy, you both signed up to hawk some website.

Careful folks, the link is a known virus sight, will destroy your computer. Be careful, don't go there.

Apr 12, 2011 5:09 am

The original master of the process Randy Yoakum is back I guess, after a non compete. I'd like to see what he creates. Randy was a very honest straight shooter type, and I'd gladly do biz with his new firm when I figure out where he's at. 

Apr 12, 2011 1:46 pm

Randy's new firm...

http://www.sim-llc.com/

Jul 8, 2011 5:14 am

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