Skimming, Rebalancing, and Good Pension News



Purchased into a new Fidelity account this morning in The Hubster's Traditional IRA - which was a rollover account - in the amount of $2500 to FSUTX - Fidelity Select Utilities Growth Portfolio.

This was done by skimming off some of the profits from some of the other funds in his portfolio that have been performing extremely well.

I call it skimming the gravy - the pro's call it taking or booking a profit. This is how we have been able to diversify and grow this IRA without putting in additional funds.

FSUTX is up 23.62% this year-to-date. Hope it continues!! Cross your eyeballs and hold your tummies in as we all know that past performance is no guarantee of future performance. So far this year we are up about 5,000.00 in this account. YEAH TEAM FRUGALIS!! Wish it were more of course but very grateful for the positive results.

FSUTX is into telecommunications and electrical utilities as their main investment focus.

Also done this morning was an account rebalancing in his 401-K. Made a big play in one particular small-cap that has been doing well the last couple of years - 45% of future contributions into Allianz NFJ Small Cap (Growth) and 22% into American Funds Growth Fund R2 (Growth), 8% in Vanguard 500 Index (Growth & Income), 15% in American Fund Cap Inc Bldr R2 (Equity Income), 5% Pimco (Bond), and 5% Templeton Foreign (Growth). I will be keeping a close eye on performance. The trouble with the 401-K is that we are very limited in the funds available to invest in.

The Hubster has absolutely no interest in finances, just brings home the paycheck. He's signed over administration of his accounts to me - thankful I am that we are seeing positive results then, heh???

I do discuss everything that I do on the account and get his go-ahead first and I have even insisted that he get on the phone w/the CSR and do a few trades that I've suggested just so if something happened to me he wouldn't be a total newbie. So far he seems satisfied with my results. I do appreciate the vote of confidence but it does tend to make one nervous as I'm taking a somewhat more aggressive tack than what's recommended for someone his age it's just that we have limited time to make up for the disappearing pension!

There is some good news on that front but still iffy and even if the rumors I've heard are true then it's good news/bad news stuff. IF we can get some things straightened around with his employer (they claim they have no interest in seeing this thru as it happened before the buyout). We did find out recently what company is holding the funds purported to be in the 4 1/2 million dollar range for the group of about 390 employees but they are missing a contributor's list WITH UPDATED ADDRESSES and have refused to pay out to any more new retirees until said list is updated. SHEESH!!

Anyway - the way they explain it makes sense in some ways but not others...too complex to get into here. I dunno about you but I'd hang on to the 4 1/2 million too and claim that we can't make any more payouts but I think the government and lawyers might have something to say about that. Can you say CLASS ACTION???

But it may be forthcoming!! We have approximately 6 years to get it straight! This investment company that's holding the pension funds is a big one probably one of the top four or five of it's type so it's not likely to disappear, but how to unclench their tight little fists may be the challenge.

Even though present company is not playing along nicely I do believe by law that they are required to do some certain amount of performance like making old records available.

At any rate the monthly $$ amount being touted about is on the smallish side (no worry, we'll happily take what we can get) and will be cut in half upon his demise!

Ladies - SAVE YOUR MONEY you may need it one day!!!