Bob Brinker Free Discussion Site 59,820+

Top 464. Aug 2, 2005 8:10 PM

» solarblast - Re: Re: Brinker's Phantom Fund Notion

In response to Re: Brinker's Phantom Fund Notion posted by bob90245:

Yes, I agree with your first example. Further, note in the event of a retirement fund failure one would find themselves fully invested in the stock market. Although the phantom notion is interesting, it cannot always be applied without thinking of one's total position.

-- posted by solarblast

Top 465. Aug 2, 2005 8:27 PM

» allancoleman - Re: Critical Mass Rebalance

In response to Re: Re: Critical Mass Rebalance posted by solarblast:

i listen to bob almost every chance i get . bob always uses the term " phanton asset " and never " phantom fund " . weither it's a valid notion of setting asset allocation between stocks and bonds is a personal decision .

is this " particular to brinker " ? no

has " someone else describe(d) it ? yes

but bob probably is asked a specific question regarding it almost every weekend and usually his answer depends on the callers specific details as to that callers " asset " that is producing income and how the caller is supposed to treat that asset in his total asset allocation mix .

i have heard others mention it but not as often as bob does . and as you can see by the answers you've already gotten here , there are as many answers as there are opinions . i think weither a person wants to count a income stream such as social security , a pension , annuity , etc , in his asset allocation percentages is up to each independent investor .

one of bob's favorite phrases is to look at one's total assets , or " position " as you've stated , in figuring your asset allocation .

sometimes the " validity " is in each investors own eye . just as the ultimate responsibility is .

-- posted by allancoleman

Top 466. Aug 3, 2005 10:49 AM

» kenp11 - Re: Re: Critical Mass Rebalance

In response to Re: Critical Mass Rebalance posted by bob90245:

1. Target Allocation 60 Equity /40 Fixed
2. No stable value fund in 401k. Trying to find one outside of 401k
3. Taxable 50% 401K 35% IRA 15%
4. Age 47
5. No RMD problem

-- posted by kenp11

Top 467. Aug 3, 2005 10:51 AM

» kenp11 - Re: Re: Critical Mass Rebalance

In response to Re: Critical Mass Rebalance posted by allancoleman:

Is there a stable value fund outside of 401k's that is available in a fund family?

-- posted by kenp11

Top 468. Aug 3, 2005 11:53 AM

» allancoleman - Re: Critical Mass Rebalance

In response to Re: Re: Critical Mass Rebalance posted by kenp11:

hello kenp11 ,

if you'll " goggle " " stable value funds " , you come up with a lot of hits . you can start with : http://www.stablevalue.org . do your homework cause most require that you keep your money in the fund for awhile , but that's getting to be the case in regular mutual funds too .

good luck . keep in mind that most stable value funds are just simply the old GICs ( guaranteed investment contracts ) and are subject to the old saying , " guaranteed by whom " . but , until the n.a.v. of our favorite fixed income mutual funds comes down , they are acceptable .

p.s. you can " google " right here on suite101 , i think ? , thanks to kirk & company . and i think we also have a " stable value " forum too . ? ?

-- posted by allancoleman

Top 469. Aug 3, 2005 1:00 PM

» bob90245 - Re: Re: Re: Critical Mass Rebalance

In response to Re: Re: Critical Mass Rebalance posted by kenp11:

I did some research around 2 or 3 years ago on Stable Value funds for IRA accounts. The only one that seemed worthwhile was one offered by Pimco. Pimco has since changed the fund's objective. Just before that change, there was some controversy over Stable Value funds as a fund category. That's why I think they are mostly only offered through 401k's.

A agree it's a tough call to go with bond funds. Kirk gave some good advice in his post. The alternative is building a bond or CD ladder (usually 5 years) and holding each to maturity. My 401k has a good Stable Value fund. So that is where I keep most of my "Fixed" allocation.

Assuming that you want to build a ladder, this would best located in your IRA account. So the question would be, Can you transfer your 401k to a rollover IRA? That way, you'll have the flexibility to have all your "Fixed" allocation in tax-defered accounts.

-- posted by bob90245

Top 470. Aug 3, 2005 2:50 PM

» allancoleman - Re: Critical Mass Rebalance

In response to Re: Re: Re: Critical Mass Rebalance posted by bob90245:

all of bob90245's points are correct kenp11 . and if it weren't for the fact that i have an excellent stable value fund in my 401(k) that allows daily switching with no penality , i would probably look at other fixed income investments .

-- posted by allancoleman

Top 471. Aug 5, 2005 7:16 PM

» bob90245 - How will Brinker view the jobs report?

Assuming Brinker will be on air (with no fill-in host), I am wondering if he will change his view about the economy. I recall Brinker saying that the new jobs report is very critical. Past reports have been in what Brinker calls the "sweet spot" with numbers between 150,000 and 200,000. Therefore, today's news of new jobs at 207,000 has to be worrisome. (Backward logic: good news for Main Street may not be good news for Wall Street). I've been reading articles today about more inflation worries and that the Fed will continue raising short-term rates. Of course, there is the offseting news of oil nearing new highs today. In Brinker's view, higher energy prices takes money out of the consumer's pockets and thus is not inflationary.

Should be interesting to listen to Brinker's opinion on all this.

-- posted by bob90245

Top 472. Aug 5, 2005 9:14 PM

» allancoleman - Re: How will Brinker view the jobs report?

In response to How will Brinker view the jobs report? posted by bob90245:

hello bob ,

you are correct that one of bob's fears was an economy that grows to fast with to much job growth .

and you're also correct that bob thinks higher energy costs aren't necessarily inflationary .

and i agree that it would be interesting to hear bob's comments this weekend . unfortunately my calendar shows that Terry Savage is covering for bob this weekend . and although i have respect for Terry , she isn't bob and usually doesn't give much better investment views than Suze Orman . in my opinion . smile .

-- posted by allancoleman