Help us rescue our managed funds

[mathjak107]

I would put it all in at once since you already are in and studies show since the markets rise 2/3 of the time trying to put it in over time usually cuts your returns more than the occasional market dip you might catch.
I use 2 newsletters one of which i have been following for over 20 years and continue to do so.I use 2 newsletters because i have different portfolios for my short,medium and long term money and the 2 newsletters give me no overlap by using the same fund in more than one porfolio.I like having active management as well as the hand holding, in the downturns* having input from the newsletters helps my emotions from doing something stupid like bailing.But there is nothing wrong with going the etf route.

[mickeyd]

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With 200 stocks, you're as diversified as some mutual funds

Not necessarially Nords. It would be easy to have 200 stocks and have little diversification. There are about 7000 stocks in the US alone. 200/7000 isn't that much.

[mathjak107]

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Originally Posted by mickeyd Not necessarially Nords. It would be easy to have 200 stocks and have little diversification. There are about 7000 stocks in the US alone. 200/7000 isn't that much.

Just having 200 stocks isnt any guarantee of alot of diversification.Remember ford is now a finance company first that happens to sell cars.There are so many companies today that have diworsified that its hard to tell what business they are in.What the heck does ge do anymore? While i agree with 200 stocks you got to at least hit it lucky and get some right,it would take doing alot of homework to get the mix just right and knowing just what it is that your companies do..

[Craig]

I'm a CPA as well, so I feel your pain ... counseling can help get you past the spreadsheet addiction, but it is a long road.

So, roughly 6% per annum returns, pre-tax? Since when? I note your comments re: index funds. Common situation.

The $7K tax hit is so immaterial in the big picture, if you just start with that clean sheet of paper and allocate appropriately, you'll probably be much happier.

Best of luck.

[Texas Proud]

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Originally Posted by mickeyd Not necessarially Nords. It would be easy to have 200 stocks and have little diversification. There are about 7000 stocks in the US alone. 200/7000 isn't that much.

Probably wrong... it has been many many years since I took portofolio analysis for my MBA, but in fact the 'portfolio' starts to get diversified around 30 stocks... not if they are in the same field etc, but are different type of companies (ie diverse kind of companies)..

We would create a portfolio and do an analysis... add another diverse stock not in the same industries.. and the diversification calulations did not change that much at all... so I would be if these are diverse companies they are pretty diverse...

[Nords]

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Originally Posted by mickeyd Not necessarially Nords. It would be easy to have 200 stocks and have little diversification. There are about 7000 stocks in the US alone. 200/7000 isn't that much.

Well, the proof of the question would be to enter all 200 holdings into Financial Engines or M*'s Portfolio X-ray.

You go first...

[mickeyd]

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You go first...

Sorry, I don't have the time, I'm busy that day.

[dmpi]

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Originally Posted by Charles neeps, you hit it.* * When I read your $7K number my jaw dropped.* On a $900K portfolio?* Wow.* Most of the folks here have large unrealized gains in their portfolios that effectively compound tax-deferred everyday.* That has a huge impact on wealth creation.

I assume the 7K is at the 15% tax rate so the OP is really sitting on 46.6K of cap gains.
Come'on... that's not really that bad. The S&P 500 has been flat going back 7 years.
My numbers aren't much better, 130K on 1.25M.
I want to hear from the folks with the "large unrealized gains in their portfolios".
Just how big is it?

[Gillette]

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Originally Posted by dmpi I assume the 7K is at the 15% tax rate so the OP is really sitting on 46.6K of cap gains. Come'on... that's not really that bad. The S&P 500 has been flat going back 7 years. My numbers aren't much better, 130K on 1.25M. I want to hear from the folks with the "large unrealized gains in their portfolios". Just how big is it?

Close, $47.6k unrealized gain left in the accounts. $19k of gain already realized this year (in addition to the $47.6k). Selling up means total gain of $66.6k this year.

[FinanceDude]

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Originally Posted by neeps Close, $47.6k unrealized gain left in the accounts. $19k of gain already realized this year (in addition to the $47.6k). Selling up means total gain of $66.6k this year.

Is the $47.6 unrealized a "net number"? You have claimed all your losses going back? Otherwise, maybe a little tax loss selling can mitigate things...........

A$47.6K is not a lot on a $900K portfolio...............a little better than 5%...........