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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: jritz0 who wrote (11493)	11/19/2024 8:39:47 AM
From: SeeksQuality	4 Recommendations Recommended By ddbpaso Markbn misscbd Waitress Read Replies (1) \| Respond to of 22026

That sounds more like an argument AGAINST loading up on T, VZ, KMB than an argument FOR holding JEPI. There are other funds that have the freedom to invest in different stocks including SCHD and SPY. One of the problems with discussing funds like these is that they have a very short history, which means that we don't really understand how they will behave over the longer term. But that category of investment - derivative income funds - has averaged just 6.66% over the last decade, a dramatic underperformance. JEPI has done well the last three years, but then (due to the volatility) so have other option income funds. I don't think we yet have evidence to support the claim that they are unique among peers. I agree that JEPI is lower volatility than most (which helped it outperform in 2022 despite underperforming the category in 2023-2024), so it might make sense for somebody who specifically intends it to lower volatility. But if you go down that path, you find that the volatility is still substantially higher than PG, VZ, WEC. You argue that JEPI outperforms those three (might or might not over a full decade), but does it outperform a risk-comparable mix of those three and SPY? The last three years have been strong for JEPI, so it might. But based on the category averages over longer time frames, it seems unlikely. I generally prefer longer term bonds to cash in retirement accounts during the accumulation phase to reduce volatility. That stopped making sense for a decade while the Fed messed with rates, but they are normalizing again with the 10 higher than the 2. The yield curve could steepen a little more, but already I am seeing 5 and 10 year bonds as a sensible piece of the puzzle.

To: jritz0 who wrote (11493)	11/19/2024 10:36:48 AM
From: socalmike	1 Recommendation Recommended By jritz0 Respond to of 22026

jritz0- Thank you for your insight. Many things to consider long term. On another note- With this year winding down I'm doing a little tax loss harvesting in the taxable account. Took the profits from $IRM and $KR. Sold the losers $PFE and $MPW (yeah, I know, but I've owned it for quite some time). Also, in December, I'll re-visit the IRAs and see how much of a conversion I can do and stay in the 24% bracket.