If I buy a bond fund such as PTTRX and leave it alone for 20 years, will it double? Triple? Go nowhere? I've never been in bonds, but want to get my IRA situated and not have to look at it, hoping to make 7% or so compounded annually.
The current individual annual gift exclusion is $13K per person or $26K per couple. The current lifetime gift exemption is $5M per person or $10M per couple. The annual exclusion does not count against the lifetime exemption.
Back in my workin' days, one evening a group of PIMCO folks walked into the store, I think after the last session of one of their Cyclical Forums. I had a bit of a conversation with one of their guys from Europe and opined that I'd put all my $$$ with PIMCO if I could.
He responded, "Never put all your money with one manager."
That was 5 or 6 years ago, but I considered it good advice then and still do, especially since his self-interested response would have been something else.
That was about "one manager." You are thinking about "one vehicle" from "one manager."
If I were going to do a set-and-forget concept covering 20 years, I would put 60-65% in a Vanguard "All-World" style index fund and 35%-40% into one of PIMCO's go-anywhere local-denominated bond funds (D Shares). In both, you would be tied to change in world GDP, one from the equity standpoint and the other from the debt side......Dave
$ 50 to close the Fidelity fund or just pay a $ 75 transaction fee and buy the Wellington Fund through Fidelity, avoiding all the paperwork. Worth it to me to buy the Wellington Fund through Fidelity. Wish me luck guys! Thanks for helping me get to this decision. I feel good about it! Will hope to keep this fund for a long time, then move it to the Wellsley fund when I'm closer to retirement since it's heavily bonds.
Yeah, I need to find out what Fidelity would charge me if I moved the account to Vanguard. I bet it's worth 75 bucks not to have to move the account, but we'll see...I will say this, called Vanguard today and the guy was CLUELESS.
Thanks for all your help. I think I'm closing in on a good idea: what about the Vanguard Wellington fund? (VWELX). Seems perfect if I'm looking 20 years out. 65% stocks and 35% bonds, very diversified bonds. I'm with Fidelity and see that this fund has a load. Would it have a load if I switched to Van Guard as well? Meeaning that if I get it, I may as well just keep my Fidelity account and buy it through them?? I'm thinking about putting my entire IRA in VWELX.
1. Absolutley not.
2.Regarding wanting to get 7% or so compounded annually. guess what, so does everyone else but it isn't that easy.
3. You sound like you don't want to spend much time following the funds, trading etc. I suggest you buy one of the so called life cycle funds that automatically diversifies for you based on your age. Go to Fidelity or Vanguard or T.Rowe Price website and pick a fund that corresponds to your age.
Thanks, Ken. I looked at the Fidelity and Van Guard 2025 life cycle funds and the returns were really low. Oh well. I just wish I could get a good fund, put my IRA in it and know I'd get at least 5 percent annually over the next 20 years! Not so easy, and picking how to invest/what to invest in is a headache!