This is a Bob Brinker Fan Club and Critic Club. We join the Starship Moneytalk each Sunday on our way to Marketimer's Land of Critical Mass. We will post brief commentary about Bob Brinker's Moneytalk.
Sunday, July 9, 2017
Honey's Vacation
Honey is taking a week, but notice it is announced.
Once again, Bob Blockhead proves he knows absolutely nothing about the federal employee 401k-style retirement savings program called the Thrift Savings Plan (TSP), in which 100's of thousands of federal employees participate, including members of Congress.
The program custodian is Blackrock, only the world's largest asset manager with over 5 trillion under management. Larry Fink is the boss, if you've ever heard of him.
Whenever someone calls Moneytalk or any other financial show and asks the host for their opinion of the TSP and its 5 different mutual funds, it's always dead silence, a blank stare and dear-in-the-headlights until the host coughs up a "What?... What was that?"
It just shows the blind spot that many financial "advisors" have about a plan that mass quantities of people participate in. It makes us wonder about their expertise.
In hour-2 at about 40 minutes past the hour, Dan from San Diego gave a rundown of his and wifey's 1.7 million in assets and asked Bob for his opinion about the portion of fixed-income that's in the TSP G-fund, which is basically cash in the form of specially-issued (only to the TSP) non-traded treasury securities whose issue-rates are guaranteed to keep up with inflation, by law of the plan. The fund has yielded 1.8% the past few years, with nearly the same yield every month, irrespective of what the bond market does because the securities are not market-traded.
Bob's first response was, "What's the duration?" Dan shoulda responded "zero" for obvious reasons.
It's really amazing how many financial advice-givers are clueless about the elephant in the room, the TSP. Certainly, the average Joe never hears of it until he goes to work for the federal government, but it's not a secret society. The information is public if a person cares to learn.
Everyone has heard of CALPERS because of the idiotic scandals, so I guess the TSP is in good hands.
The TSP's 5 funds are: G-fund (aforementioned government securities), F-fund (fixed-income securities), C-fund (common stock S&P 500), S-fund (small cap stock) and I-fund (international stock). Seems pretty simple.
Dan was obviously Navy-affiliated because San Diego is a huge federal Navy town. With great weather. Glenn, China Lake
Honeybee said... I got out of the hospital yesterday. More later. Plan to be back soon.
You're very lucky. The last time that I was in a hospital, they wouldn't let me out when I asked. It was a mental hospital. I had to get (buy) 3 signatures.
Sorry to learn that you were ill. Actually last week I thought you might be ill when several days passed by before any new comments were posted. I hope you feel better soon.
Kudos to Glenn, China Lake for highlighting BB’s ignorance of the virtues of the TSP. Millions of active and retired veterans are able to attain, or have attained Financial Freedom due to the index/ETF ultra-low ER’s on the entire TSP suite of portfolio options.
I can personally vouch for the John Bogle success style of ultra low-cost investing. Thanks to the TSP, good health and fortune, I can wake at the crack of noon any day, anywhere, should I choose to. Over time, the TSP has only gotten better with the addition of the L series (Target Date) funds. All contributions to these funds can be, (your choice), Traditional or Roth.
For the market-timer type veteran, yes, you can sweep any or all your holdings into or out of any particular fund(s), including the G fund which has Zero market risk, twice a month at Zero cost. To say the least, though, market-timing is not encouraged by the plan.
For when BB reads this “communique”, I have provided a link below to the performance history of the TSP.
Thrift Savings Plan Summary of Returns I can only cringe at the thought of paying a .25 12b-1 “revenue sharing” fee on a 1.34 ER underperforming actively managed fund.
I usually do not leave a comment, but I read a few of the remarks on this page "Honey"s Vacation". I do have some questions for you if it's okay. Could it be only me or do some of these remarks come across like they are coming from brain dead visitors? :-P And, if you are posting at additional social sites, I would like to keep up with anything new you have to post. Could you list of all of your social sites like your linkedin profile, Facebook page or twitter feed?
. As usual, I have read the July issue of Marketimer. The only thing that jumped out at me was that Bob Brinker keeps raising his S&P 500 target range projection.
This month, he has raised it to: ".....potential upside into the S*P 500 Index 2500s range going forward, as investors discount improved operating earnings prospects."
This is the first time ever that I recall him making the range a full 100 points. Usually, he will narrow it to low, mid or high....
One thing I found interesting in the July Marketimer was that Brinker suggested he might take defensive action if he anticipates a correction. I take his meaning of "correction" as something less than a 20% decline. I don't recall anytime in the past where he has moved money to cash unless he expected an actual bear market with a 20% or greater decline.
. Jim...I found that statement very interesting too. As you said, he has never raised cash to take advantage of a correction.
And if he waits for a 20%+ decline, he certainly won't raise cash! He never "sells into weakness."
I said to the person who was visiting with me that all that sentence was for was to remind everyone that they need to be sure and renew their subscriptions and wait for him to make the "big call."
24 comments:
Honey is taking a week,
I don't recall having a public referendum on this or any discussion of the matter.
Once again, Bob Blockhead proves he knows absolutely nothing about the federal employee 401k-style retirement savings program called the Thrift Savings Plan (TSP), in which 100's of thousands of federal employees participate, including members of Congress.
The program custodian is Blackrock, only the world's largest asset manager with over 5 trillion under management. Larry Fink is the boss, if you've ever heard of him.
Whenever someone calls Moneytalk or any other financial show and asks the host for their opinion of the TSP and its 5 different mutual funds, it's always dead silence, a blank stare and dear-in-the-headlights until the host coughs up a "What?... What was that?"
It just shows the blind spot that many financial "advisors" have about a plan that mass quantities of people participate in. It makes us wonder about their expertise.
In hour-2 at about 40 minutes past the hour, Dan from San Diego gave a rundown of his and wifey's 1.7 million in assets and asked Bob for his opinion about the portion of fixed-income that's in the TSP G-fund, which is basically cash in the form of specially-issued (only to the TSP) non-traded treasury securities whose issue-rates are guaranteed to keep up with inflation, by law of the plan. The fund has yielded 1.8% the past few years, with nearly the same yield every month, irrespective of what the bond market does because the securities are not market-traded.
Bob's first response was, "What's the duration?" Dan shoulda responded "zero" for obvious reasons.
It's really amazing how many financial advice-givers are clueless about the elephant in the room, the TSP. Certainly, the average Joe never hears of it until he goes to work for the federal government, but it's not a secret society. The information is public if a person cares to learn.
Everyone has heard of CALPERS because of the idiotic scandals, so I guess the TSP is in good hands.
The TSP's 5 funds are: G-fund (aforementioned government securities), F-fund (fixed-income securities), C-fund (common stock S&P 500), S-fund (small cap stock) and I-fund (international stock). Seems pretty simple.
Dan was obviously Navy-affiliated because San Diego is a huge federal Navy town. With great weather.
Glenn, China Lake
We hope Mz. Bee is doing okay.
Haha, first caller, another multi-millionaire worth nearly $5M. Must be a government worker.
Heard a bit of Bob today. Sounded good. I appreciate honeys blog
John from SF said:
A weekend without Honey was not as sweet...
Thanks foe all the other weeks. Enjoy the vacation.
Kudos to HB for all her hard work. She deserves a much needed break.
I was hoping that Larry Kudlow would fill in for her!!!!
>>> HONEY: ARE YOU OKAY???? <<<
Jeff,
re: Kudow. LOL!
No one can fill in for HB, not even Kudlow - she is the GREATEST!
JC
Dear Bluce and all,
I got out of the hospital yesterday. More later. Plan to be back soon.
Honeybee,
A vacation in a hospital? That's a bit weird if you don't mind me saying. ;-)
Seriously though, best wishes for a speedy recovery!
JC
Best wishes to you Honey -- hoping you're back to 100% soon. Hospitals = not fun. Don't ask me how I know.
Honeybee said... I got out of the hospital yesterday. More later. Plan to be back soon.
You're very lucky. The last time that I was in a hospital, they wouldn't let me out when I asked. It was a mental hospital. I had to get (buy) 3 signatures.
(I bet that made you smile) :--)
Mr. Pig: They wouldn't let you OUT??? How in the world did you get IN? If I ran a hospital I certainly wouldn't let no dirty pigs inside.
Sorry to learn that you were ill. Actually last week I thought you might be ill when several days passed by before any new comments were posted. I hope you feel better soon.
Kudos to Glenn, China Lake for highlighting BB’s ignorance of the virtues of the TSP. Millions of active and retired veterans are able to attain, or have attained Financial Freedom due to the index/ETF ultra-low ER’s on the entire TSP suite of portfolio options.
I can personally vouch for the John Bogle success style of ultra low-cost investing. Thanks to the TSP, good health and fortune, I can wake at the crack of noon any day, anywhere, should I choose to. Over time, the TSP has only gotten better with the addition of the L series (Target Date) funds. All contributions to these funds can be, (your choice), Traditional or Roth.
For the market-timer type veteran, yes, you can sweep any or all your holdings into or out of any particular fund(s), including the G fund which has Zero market risk, twice a month at Zero cost. To say the least, though, market-timing is not encouraged by the plan.
For when BB reads this “communique”, I have provided a link below to the performance history of the TSP.
Thrift Savings Plan Summary of Returns I can only cringe at the thought of paying a .25 12b-1 “revenue sharing” fee on a 1.34 ER underperforming actively managed fund.
A profitable day in the market both in equities and bonds and in the international arena!
Gabe
I usually do not leave a comment, but I read a few of the remarks on this
page "Honey"s Vacation". I do have some questions for you if it's okay.
Could it be only me or do some of these remarks come across
like they are coming from brain dead visitors? :-P And,
if you are posting at additional social sites, I would like to
keep up with anything new you have to post. Could you list of all of
your social sites like your linkedin profile,
Facebook page or twitter feed?
Speedy recovery Honeybee! You are in my prayers.
To Anon: I am certified to be brain-dead, and a proudly deplorable poster.
.
As usual, I have read the July issue of Marketimer. The only thing that jumped out at me was that Bob Brinker keeps raising his S&P 500 target range projection.
This month, he has raised it to: ".....potential upside into the S*P 500 Index 2500s range going forward, as investors discount improved operating earnings prospects."
This is the first time ever that I recall him making the range a full 100 points. Usually, he will narrow it to low, mid or high....
One thing I found interesting in the July Marketimer was that Brinker suggested he might take defensive action if he anticipates a correction. I take his meaning of "correction" as something less than a 20% decline. I don't recall anytime in the past where he has moved money to cash unless he expected an actual bear market with a 20% or greater decline.
.
Jim...I found that statement very interesting too. As you said, he has never raised cash to take advantage of a correction.
And if he waits for a 20%+ decline, he certainly won't raise cash! He never "sells into weakness."
I said to the person who was visiting with me that all that sentence was for was to remind everyone that they need to be sure and renew their subscriptions and wait for him to make the "big call."
With a dovish Chair Yellen, I do not see a correction in the foreseeable future. The Market will chug along through the summer.
A winning ride today! It's about time!
Gabe
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