Originally Posted by
Andy
I assume you've never heard Marty Zweig's quote about fighting the Fed.
Yep ,and spot on.
I must reiterate, RHA funds should be in the most conservative vehicle once you retire, just like your checking or savings account. This is why you invest when younger…to have money to spend later, regardless of what markets do. Even Schwab’s money market is paying near 1.5%..and that is a dollar fund, that is fixed- it cannot lose value unless there is a default in the money markets (armageddon).
The investment committee needs to get this.
Originally Posted by
StarbucksBob
I don't think active management or self-directed activity would have prevented the losses we have seen this year to the VEBA, if it was actually allowed by the IRS (I'm not sure). I've flown with pilots my entire career who somehow have always known (in retrospect) when they should have gone to cash and most often, they are wrong. Hopefully you don't need to access your VEBA funds anytime soon. It will come back.
It will come back? When does your crystal ball say? In the mean time as I write checks to cover hospital bills, do I tell the billing department to wait until the market comes back, in a year or five?
Self direction is not even required, so long as the investment committee were truly as responsible with the funds as they will be with their own money, used to pay monthly expenses.