Tarheel Posted July 9, 2014 Share Posted July 9, 2014 For income with growth potential. I have one annuity through Wells Fargo and Transamerica. I will start drawing income next March from that one. Talking with Vanguard today they say I can match the 5% growth in their annuity with preferred stocks. Any money managers/brokers want to dispense some advice? Would like monthly checks. 1 Quote Link to comment Share on other sites More sharing options...
minermark Posted July 10, 2014 Share Posted July 10, 2014 Yeah, wells has got my rollover also, I suppose I should be looking into that next year. Never heard anything bad about Vanguard, I would research their track record though. 1 Quote Link to comment Share on other sites More sharing options...
Ski Bum Posted July 10, 2014 Share Posted July 10, 2014 (edited) Vanguard is top notch, although their website kind of sucks. Should be easy to beat 5%. VGHCX, VHCOX, VASVX, and VDIGX are my reccos. They're up 14%, 9%, 8%, and 6% ytd. Edited July 10, 2014 by Ski Bum 2 Quote Link to comment Share on other sites More sharing options...
Schu Posted July 10, 2014 Share Posted July 10, 2014 Vanguard is top notch, although their website kind of sucks. Should be easy to beat 5%. VGHCX, VHCOX, VASVX, and VDIGX are my reccos. They're up 14%, 9%, 8%, and 6% ytd. really? that's outstanding yield. Quote Link to comment Share on other sites More sharing options...
Ski Bum Posted July 10, 2014 Share Posted July 10, 2014 (edited) That's ytd returns, total. For a more conservative income strategy, maybe VDIGX, VPCCX, VFICX, VWEHX, VGHCX. (Of those, I only personally own some Div Growth and quite a bit of Healthcare. The way I see it, the name of the game is maximizing one's net worth, however it gets done. A higher net worth will ultimately support higher monthly income.) Edited July 10, 2014 by Ski Bum Quote Link to comment Share on other sites More sharing options...
Tarheel Posted July 10, 2014 Author Share Posted July 10, 2014 Any thoughts on preferred stocks? Quote Link to comment Share on other sites More sharing options...
Max2 Posted July 10, 2014 Share Posted July 10, 2014 Any thoughts on preferred stocks? A good place to start researching http://www.preferredstockchannel.com/yield-top-ten/ 1 Quote Link to comment Share on other sites More sharing options...
Ski Bum Posted July 10, 2014 Share Posted July 10, 2014 Any thoughts on preferred stocks? If the added returns from a preferred stock make it competitive with other investments in maximizing your net worth and spending power, then sure. I only dabble in individual companies' stock. I'm just much more comfortable with the diversity of funds. Individual stocks are too risky, even if they are preferred stock. It's easier to keep an eye on fund management and performance than that of individual companies. 1 Quote Link to comment Share on other sites More sharing options...
Tarheel Posted July 15, 2014 Author Share Posted July 15, 2014 Thanks for the replies. I am still looking into different options. I am 97% individual stocks and 3% cash. My problem with diversity through funds is that the fund managers are picking their best 10 ideas along with the next 90 ok ideas to spread the loss/gain. I think it was Ken Heebner who ran the CGM Focus Fund among others who said something like "diversity is for those who have little faith in their largest holdings." I think the Focus Fund held 20 issues. At one time (may still be) there were more mutual funds than individual stocks. I also remember the Janus Funds and their "style drift" during the tech bubble where most of their funds held the same high flying issues. Just some early morning rambling. Quote Link to comment Share on other sites More sharing options...
Ski Bum Posted July 15, 2014 Share Posted July 15, 2014 (edited) "diversity is for those who have little faith in their largest holdings." Yeah, and they also say "pigs get slaughtered." Investing is not about faith or emotion, or at least it shouldn't be. Diversity reduces risk. Concentrated holdings increase risk. It really is that simple. Speaking of which, how has Mr. Heebner's GCM fund fared compared to any of the Vanguard funds I mentioned up-thread? Still underwater from '08 vs. well ahead. Edited July 15, 2014 by Ski Bum Quote Link to comment Share on other sites More sharing options...
Tarheel Posted July 15, 2014 Author Share Posted July 15, 2014 "diversity is for those who have little faith in their largest holdings." Yeah, and they also say "pigs get slaughtered." Investing is not about faith or emotion, or at least it shouldn't be. Diversity reduces risk. Concentrated holdings increase risk. It really is that simple. Speaking of which, how has Mr. Heebner's GCM fund fared compared to any of the Vanguard funds I mentioned up-thread? Still underwater from '08 vs. well ahead. Focus fund five year annual return up 10.48%. If diversity is the key why not just buy index funds? Quote Link to comment Share on other sites More sharing options...
Ski Bum Posted July 15, 2014 Share Posted July 15, 2014 (edited) If diversity is the key why not just buy index funds? Diversity is important in managing risk, but I don't think it's the sole factor dictating what one should do. A portfolio consisting of many of the funds already mentioned provides plenty of diversity, low transaction costs (gotta love Vanguard's cheap fees), and index-beating, market-leading returns. (Sorry for the Vanguard fanboyism, but what's not to like?) For further Vanguard research, from a source that has some objectivity, I highly recommend www dot advisoronline dot investorspace dot com. The Vanguard Advisor is a paid subscription, fyi. They also have analysis of the Fidelity fund family I subscribe to. Not cheap, but no BS either. Edited July 15, 2014 by Ski Bum 1 Quote Link to comment Share on other sites More sharing options...
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