It's time to bid farewell to 2010, forever closed off to our memories and the history books. Yesterday, I realized a somewhat stunning feat in that I went to WrestleMania XXVI in Glendale, AZ, on March 28, 2010, and then Monday Night RAW in Phoenix the next night, and those were the only two wrestling events I attended the entire year. For a dedicated fan who used to attend a dozen wrestling shows each year (and I didn't even try to keep count at my peak in 2007), this was shocking. Understandable, but shocking. Afterall, Shawn Michaels is my all-time favorite wrestler and he retired this year. Additionally, Impact Zone Wrestling was where I attended most of my live wrestling events and I disassociated from them at the end of last year. Besides, subtract my time left after all the Jeordie gigs and there wasn't much free time for local wrestling.
Regardless, I made a lot of time for WWE on Monday nights and Thursday nights. I didn't have much time for Friday nights or their online events. I barely watched half of the WWE pay-per-view events throughout the year. So, this year will be the most limited pool of reference, but it's almost a prerequisite for any dedicated wrestling to rattle off a few Year-End Achievement Awards, so permit me to provide mine for the year gone by.
WRESTLER OF THE YEAR: The Miz.
Runner-Up: Kane
Think of it this way, if this year is going to be remembered for any one particular wrestler, then it would be The Miz. John Cena had a ho-hum year. Randy Orton ran a bit hot-and-cold. And Kane may have logged the best year of his entire career, but it was often overshadowed by his challengers. Conversely, The Miz started the year beating Shawn Michaels for the last championship on his resume, picked up steam before and after WrestleMania, secured his place as an upper mid-carder at Money In the Bank, and finally, cashed in his prize to end the year as WWE Champion. When fans are supposed to hate him, there are many who love him so he is almost the anti-John Cena. Except, one thing both men clearly have in common: an indefatigable passion for the business.
MATCH OF THE YEAR: Shawn Michaels versus Undertaker, WrestleMania XXVI.
Runner-Up: John Cena versus Batista, WrestleMania XXVI.
While I have no complaints about the match quality throughout the year, there were hardly any matches that left fans breathless from beginning to end. Subtracted from the pool were both Bragging Rights (Dolph Ziggler versus Bryan Danielson) and TLC (Sheamus versus John Morrison), so maybe I would have a different opinion with a more informed opinion. Regardless, WrestleMania featured a monsterous card of marquee matches with a WWE championship match that was five years in the making, a grudge match that was 13 years in the making, and the most important WrestleMania Rematch in all 26 years. At the end of the night, John Cena and Batista had the fans eating out of the palm of their hands, but Shawn Michaels and Undertaker had the lasting WrestleMania moment as they ended the career of the greatest in-ring performer of all time.
FEUD OF THE YEAR: John Cena versus Nexus.
Runner-Up: Undertaker versus Kane.
After drawing over 80,000 fans for WrestleMania 23, John Cena only had one challenge remaining to reach a legendary status, and that was to get over without the benefit of the WWE championship. Feuds with Big Show and The Miz were unsuccessful attempts, but his trials with Nexus captured the fans' attention unlike any other throughout the year. My controversial runner-up was benefitted by the fact that the historically obligatory Hell in a Cell between Undertaker and Kane became a reality (regardless how disappointing the match itself was). Issues between Randy Orton & Sheamus were of minimal interest. The next closest runner-up would probably have been The Miz and his first NXT protege.
TEAM OF THE YEAR: The Nexus.
Runner-Up: ShowMiz.
Without question, this honor belongs to the cast of NXT, Season 1. While the participants originally looked as though they could not be any more different, their union surprisingly did not take long to buy. For seven guys whose presence recoiled an already low rating from ECW, synergy proved to be their greatest asset as the whole was truly worth more than the sum of its parts. At least leading into the main event of SummerSlam. After SummerSlam, fans had different opinions on where the group should have been used. Regardless, the tag team scene was a virtual wasteland. John Morrison & R-Truth also made a formidable team and the Hart Dynasty got its time in the sun, but the runner-up honor was given to ShowMiz by virtue of starting the quick launch of The Miz.
WOMAN OF THE YEAR: Vickie Guerrero.
Runner-Up: Michelle McCool.
World Wrestling Entertainment is subtly turning mysogynistic with their strongest Diva characters always being heel. Regardless, it is hard to hate a truly good heel, and both Vickie Guerrero and Michelle McCool proved themselves as such throughout the year. Not that there was much in terms of competition for WWE Divas this year as their division became single-branded, much like the tag division did last year. There is plenty of room for the fans to rally behind their favorite WWE Diva but, since the release of Mickie James, that position has yet to be filled.
NEWCOMER OF THE YEAR: Wade Barrett.
The creation of NXT provided a lot of opportunity for newer stars to catch fire, but thusfar, the only person who has really been elevated to a higher level has been Wade Barrett, and rightly so. The man has a natural ability with a well-earned level of confidence. Hopefully, Wade Barrett will be a major contender for years to come. He is definitely World championship material, but whether that feat materializes has yet to be seen.
EVENT OF THE YEAR: WrestleMania XXVI.
I withheld the assignment of a runner-up, but without question, WrestleMania XXVI was the biggest event of the year. Notwithstanding a huge miscalculation for the World championship match (the title should have stayed on Undertaker with HBK winning his last Royal Rumble to put Edge/Jericho as a solid midcard match instead of a forced main event), this event saw the culmination of numerous years of history. From Bret/McMahon to the Legacy triple threat, it was hard to find a weak match on the card (although I bet most fans would have named ShowMiz versus John Morrison & R-Truth if forced to choose).
Friday, December 31, 2010
Saturday, December 25, 2010
This is why I hate Christmas...
For starters, I should preface this entire entry by saying that I don't like surprises! This includes presents. My friends don't celebrate my birthday (I don't really even give them a chance by keeping my birthday a secret), and I don't care for Christmas presents most of the time. I think it's ridiculous that the calendar determines when someone is obligated to buy something for me, and then they spend money (they often don't have) on something (I often don't need) just because they know me.
 |
| My coolest gift ever! |
This fully excludes buying me something with a certainty that I would like it. It even excludes getting things that people genuinely believe I need or want, although that is a slippery slope right into the above-referenced drawback of presents.
Buying a "Christmas present" for me in the manner described above comes with a lot of additional pressure. The buyer is hoping that the receiver will appreciate it greatly. The receiver is hoping that they will feel grateful. And onlookers, if any, are hoping that the exchange will result in a moment of overwhelming joy.
That's a lot to ask out of an obligation.
Case in point, here is what I received this Christmas:
- GPS from my family (I've never wanted a GPS, and I love finding places on my own - most of the time, so I suspect this expensive device will get minimal usage).
- Marvel T-shirt from Jeordie (I don't read comics - she later exchanged it for an extremely useful pair of slippers for me).
- Lime green Mohegan Sun T-shirt from Chad (I don't care for the color, but I dig the venue).
- Little stocking with "K" on it from Jeordie (more later).
- "The Dangerous Book for Boys" from Melanie (I'm 30+, although I have a nephew at the right age so reading through this book should improve interactions with him).
- Loot of books & candy from Samm Tyler, Jeordie's friend (very appreciated).
- Dinner at Pita Jungle from Amy (delicious, and totally unexpected)
 |
| Have a Very Penny Christmas! |
My favorite gift? The "K" stocking because it held a peronalized note from Jeordie & Chad thanking me for everything I've done for them over the past year (and longer). Also, I like the stocking because I can put my Canadian hockey puck in it (which is probaby the best gift I've ever been given, and Jeordie only bought it for me because she knew I cheer hockey teams from Canada).
Later on, I found out that Melanie had purchased the book I received a while ago but, as she explained, "I was just waiting to find the right person to give it to," so those words alone made the book significantly more valuable to me. She scoffed at my suggestion that I'd need my nephew to maximize the value of the book, stating that there is a young boy in every grown man. Maybe so, I just don't get along with mine very well at all.
Sunday, December 12, 2010
Impulse Buy
Tonight, the following words finally won me over: "Vintage Kay acoustic, all original, nice straight neck, nice action, a very cool guitar, super nice condition, has the original soft case. $25.00 for lower USA lower 48 states shipping."
It didn't take long to finalize the buy, relatively speaking. It started the day before, after my workplace's Holiday Gala (it's in honor of Christmas mostly), when I popped my head into a Best Buy to pick up the new GNR album for $.99, because another Best Buy near work had it for that price, so I figured every location was running the same deal. Not the case here, but this location did have an adjacent guitar shop, so I decided to saunter around there for a bit. In other words, a cute girl walked into that room, so I followed her.
Once in the room though, my eyes immediately affixed on a guitar that I had wanted since I was about 15-years-old. It was an Ovation guitar styled almost identical to the guitar Mark Kendall played on MTV Unplugged during Great White's incredible performance of "Babe, I'm Gonna Leave You" in 1990. I always felt that performance was one of the reasons that show succeeded. Mark Kendall was more or less the main reason I wanted to learn how to play guitar. He was one of the biggest influences throughout my adolesence (Shawn Michaels was the other).
All things considered, I think Mark Kendall hit closer to home as a direct influence on my life. There were two things I immediately knew that I had in common with him: we were both Taurus and our last names started with a "K" (not that I readily admit it nowadays). He was listed as The K in their "Hooked" album, and that's where my pen name originated. I thought he was the coolest-looking musician of the day, and yet he didn't have any visible tattooes or piercings. It was my proof that I could be cool without either. Whether or not I was ever cool is another story, but I did learn to play guitar. Eventually, I even had my first (and only) ever live performance in July 2003, but gradually after that time, I slipped away from music as a hobby. It was replaced with local wrestling, and Impact Zone Wrestling acquired the majority of my free time.
That guitar was extremely enticing at the time, especially since Gilby Clarke has given me a fondness towards pawnshop guitars. But it was marked around $350 and (the real deal breaker) it had a broken tuning key. I opted against the impulse purchase (as I do with >90% of impulse buys) but I mentioned it to the guys in The Mixology Project when I got back, and they schooled me briefly on the history of Kay guitars, noting that it was a line of guitars from Montgomery Wards. Their history lesson wasn't fully accurate, but it was intriguing enough to be memorable to me. At that point, I made a mental note to make my next guitar purchase be a Kay guitar.
Therefore, the biggest drawback on Saturday evening to buying this (original) "dream" guitar wasn't that it was priced at $450, even though I knew I wouldn't get more than $200 of play out of it, but I would be breaking that promise to myself. I went home and jumped on eBay to price Kay guitars. I saw a rather attractive Kay guitar priced very cheap with an intriguing write-up:
Up for bidding is a VINTAGE KAY Acoustic Parlor Guitar from the 1950's or 60's!!
This Vintage guitar belonged to my brother in law who was the drummer for-
John Lennon & The Elephant's Memory Plastic Ono Band!!
Let me explain a little more in detail -
Elephant's Memory were a great NYC band signed to the APPLE record label.
John liked this band so much he chose them to be his new backing band.
My brother in law played with John on -
the "Sometime In New York City" album as well as played live,
and in the studio w/ him on numerous occasions as well as TV show appearances.
They spent alot of time together in the early 70's.
I grew up around the greatest stories a kid could have believe me! =)
I heard stories about everyone that a teenager becoming a musician idolizes!
He played w/ everyone from Louis Armstrong to Jimi Hendrix!
He was a great drummer, a great friend and an amazing brother!
I miss him everyday very much.
Please read about Elephant's Memory here -http://en.wikipedia.org/wiki/Elephant's_Memory
And here he is playing "New York City" w/ John Lennon -
LIVE @ Madison Square Garden 1972-http://www.youtube.com/watch?v=UBUMpEwvLLQ
We used to jam on the holidays with this little guitar...good times!
I got this guitar after he passed away 11 years ago.
It's a special guitar to me but -
- sadly it must go to a new home so I don't lose mine. =)
THIS IS A REAL DEAL PIECE OF ROCK N ROLL HISTORY!
This wonderful classic guitar in good visual condition but it may need some restoration work.
It has a "Steel reinforced neck" so the truss rod is not adjustable at all.
The neck might need a reset or a bolt down like I see people do or just file the bridge down.
It has high action past the 5th fret but is comfy for playing before that.
It has it's dings & dents but it's a real vintage guitar that's been everywhere...so, yeah it's cool!
This could be an amazing project guitar to turn into something insane!
It comes with the original Alligator style case w/ Blue inside...groovy old school man!
It's selling here for alot less than anyone else who sells these types would sell it for!
Save your $$$ and buy this one! Just give it some love and it will be one sweet killer guitar!
THIS GUITAR IS A CLASSIC PIECE of ROCK N ROLL HISTORY!!!!
This is great sounding old parlor guitar and I've written many songs on it!
It's a real Beauty too, pretty & stylish.
This cool guitar is ideal for collecting, a great conversation piece or great for display!!!!
Would make a great Holiday Gift Idea for the musician, or John Lennon fan!
It is a beautiful example of the original Made in USA VALCO guitars of the 50's & 60's!
Honestly, I am not sure how much of that write-up I believe is true, but it was priced at a starting bid of $79. Unfortunately, there was only an hour left on the auction when I came across it. It ended with no bidders. Afterwards, I wrote the seller to note my interest and I gave him a straight-up deal on what I was looking for mostly. I think he was offended. His response was helpful and polite, but he basically noted that this guitar was for serious collectors only.
Luckily, there were several other Kay guitars available on eBay for varying prices from $50 to $5,000.
The seller of the aforementioned eBay auction did note a few things to be wary about when buying a guitar sight-unseen, namely how difficult it is to ship a guitar through the mail and a few key terms to indicate if a guitar is "ready-to-play" or a "fixer-upper."
Shortly thereafter, my attention started leaning towards this guitar. I liked how the neck had the brand name clearly displayed, just so there was no question that it was "my" guitar. Plus, the music note on the pick guard was classic. It was only priced at $150 for the guitar and the original case. And the seller had a 9500 rating with eBay. The auction listed it as "SUPER NICE" (another apt description of myself) so I felt this seller was being honest (especially based on his positive feedback and comments).
Not that I bought it immediately!
I first saw the auction on Saturday night, and it was a "Buy It Now" listing open for the next 23 days. Originally, I planned to buy it after Christmas if it were still available and if I hadn't found any other guitar by then. But the next morning, I looked at the auction a couple more times, and later that day, I found myself deciding that I would be quite disappointed if someone else bought it. I figured I had enough waiter's remorse to risk having buyer's remorse. Plus, it was about $300 less than what I was almost willing to pay 24 hours early for a guitar, so I decided to buy it.
Spending $175 so close to Christmas was not an issue. I simply used my Cashback balance with Discover card to fund the purchase (something I had previously planned to do in November 2009 when I bought my new television on Black Friday). Now begins a waiting game for it to arrive, but like What Made Milwaukee Famous said, "the waiting's not the anguish, it's the ride!"
 |
| My first guitar purchase in about 8 years |
Once in the room though, my eyes immediately affixed on a guitar that I had wanted since I was about 15-years-old. It was an Ovation guitar styled almost identical to the guitar Mark Kendall played on MTV Unplugged during Great White's incredible performance of "Babe, I'm Gonna Leave You" in 1990. I always felt that performance was one of the reasons that show succeeded. Mark Kendall was more or less the main reason I wanted to learn how to play guitar. He was one of the biggest influences throughout my adolesence (Shawn Michaels was the other).
All things considered, I think Mark Kendall hit closer to home as a direct influence on my life. There were two things I immediately knew that I had in common with him: we were both Taurus and our last names started with a "K" (not that I readily admit it nowadays). He was listed as The K in their "Hooked" album, and that's where my pen name originated. I thought he was the coolest-looking musician of the day, and yet he didn't have any visible tattooes or piercings. It was my proof that I could be cool without either. Whether or not I was ever cool is another story, but I did learn to play guitar. Eventually, I even had my first (and only) ever live performance in July 2003, but gradually after that time, I slipped away from music as a hobby. It was replaced with local wrestling, and Impact Zone Wrestling acquired the majority of my free time.My first interest in getting a new guitar came unexpectedly while I was on an overnight trip to Flagstaff this past summer. I popped my head into a Super Pawn shop to browse, and I saw a guitar there with my name on it. Literally!
That guitar was extremely enticing at the time, especially since Gilby Clarke has given me a fondness towards pawnshop guitars. But it was marked around $350 and (the real deal breaker) it had a broken tuning key. I opted against the impulse purchase (as I do with >90% of impulse buys) but I mentioned it to the guys in The Mixology Project when I got back, and they schooled me briefly on the history of Kay guitars, noting that it was a line of guitars from Montgomery Wards. Their history lesson wasn't fully accurate, but it was intriguing enough to be memorable to me. At that point, I made a mental note to make my next guitar purchase be a Kay guitar.
Therefore, the biggest drawback on Saturday evening to buying this (original) "dream" guitar wasn't that it was priced at $450, even though I knew I wouldn't get more than $200 of play out of it, but I would be breaking that promise to myself. I went home and jumped on eBay to price Kay guitars. I saw a rather attractive Kay guitar priced very cheap with an intriguing write-up:
Up for bidding is a VINTAGE KAY Acoustic Parlor Guitar from the 1950's or 60's!!
This Vintage guitar belonged to my brother in law who was the drummer for-
John Lennon & The Elephant's Memory Plastic Ono Band!!
Let me explain a little more in detail -
Elephant's Memory were a great NYC band signed to the APPLE record label.
John liked this band so much he chose them to be his new backing band.
My brother in law played with John on -
the "Sometime In New York City" album as well as played live,
and in the studio w/ him on numerous occasions as well as TV show appearances.
They spent alot of time together in the early 70's.
I grew up around the greatest stories a kid could have believe me! =)
I heard stories about everyone that a teenager becoming a musician idolizes!
He played w/ everyone from Louis Armstrong to Jimi Hendrix!
He was a great drummer, a great friend and an amazing brother!
I miss him everyday very much.
Please read about Elephant's Memory here -http://en.wikipedia.org/wiki/Elephant's_Memory
And here he is playing "New York City" w/ John Lennon -
LIVE @ Madison Square Garden 1972-http://www.youtube.com/watch?v=UBUMpEwvLLQ
We used to jam on the holidays with this little guitar...good times!
I got this guitar after he passed away 11 years ago.
It's a special guitar to me but -
- sadly it must go to a new home so I don't lose mine. =)
THIS IS A REAL DEAL PIECE OF ROCK N ROLL HISTORY!
This wonderful classic guitar in good visual condition but it may need some restoration work.
It has a "Steel reinforced neck" so the truss rod is not adjustable at all.
The neck might need a reset or a bolt down like I see people do or just file the bridge down.
It has high action past the 5th fret but is comfy for playing before that.
It has it's dings & dents but it's a real vintage guitar that's been everywhere...so, yeah it's cool!
This could be an amazing project guitar to turn into something insane!
It comes with the original Alligator style case w/ Blue inside...groovy old school man!
It's selling here for alot less than anyone else who sells these types would sell it for!
Save your $$$ and buy this one! Just give it some love and it will be one sweet killer guitar!
THIS GUITAR IS A CLASSIC PIECE of ROCK N ROLL HISTORY!!!!
This is great sounding old parlor guitar and I've written many songs on it!
It's a real Beauty too, pretty & stylish.
This cool guitar is ideal for collecting, a great conversation piece or great for display!!!!
Would make a great Holiday Gift Idea for the musician, or John Lennon fan!
It is a beautiful example of the original Made in USA VALCO guitars of the 50's & 60's!
Luckily, there were several other Kay guitars available on eBay for varying prices from $50 to $5,000.
The seller of the aforementioned eBay auction did note a few things to be wary about when buying a guitar sight-unseen, namely how difficult it is to ship a guitar through the mail and a few key terms to indicate if a guitar is "ready-to-play" or a "fixer-upper."
Not that I bought it immediately!
I first saw the auction on Saturday night, and it was a "Buy It Now" listing open for the next 23 days. Originally, I planned to buy it after Christmas if it were still available and if I hadn't found any other guitar by then. But the next morning, I looked at the auction a couple more times, and later that day, I found myself deciding that I would be quite disappointed if someone else bought it. I figured I had enough waiter's remorse to risk having buyer's remorse. Plus, it was about $300 less than what I was almost willing to pay 24 hours early for a guitar, so I decided to buy it.
Spending $175 so close to Christmas was not an issue. I simply used my Cashback balance with Discover card to fund the purchase (something I had previously planned to do in November 2009 when I bought my new television on Black Friday). Now begins a waiting game for it to arrive, but like What Made Milwaukee Famous said, "the waiting's not the anguish, it's the ride!"
Sunday, December 5, 2010
Wiser Time: 2011 Overview
"Youth is wasted on the young."
It's an old adage, and it's so very true. At the ages when we can take the greatest risk, we feel the most insecure. At least, in terms of finances. Therefore, next year, for the first time in my life, I am going to trust the words of the media, or at least, let a financial advisor guide me in my upcoming fiscal year. Of course, I'm talking about Mo Ansari (president of Compaq Asset Management) whose radio show I listen to most evenings on KFNN 1510, Radio That Makes You Money.
Honestly, there's another caveat fueling my decision as well. I want to introduce an actively managed fund into my portfolio, also for the first time in my life. Two years ago, I introduced the Vanguard Total Bond Market Index fund to provide a stronger hedge against stocks. For the past several months, and every time I listen to Market Wrap nowadays, Mo Anasari is warning investors that the bond market is doomed for a retreat due to overcrowding, comparing it to the tech stocks of 2000 and the real estate market of 2006. Granted, if you want to get someone's attention, those two events are how to do it, so he may just have a flair for drama, but I respect his opinion, and the only way I will be able to track his word is if I put it into active practice.
In fairness, it is not just Mo Ansari advising against the bond markets. Even Vanguard.com, which provides my 401(k) has an article entitled "Vanguard's investment chief cautions bond investors." Inside is an interview with Chief Investment Officer Gus Sauter who notes, "I'm increasingly worried that people aren't aware of the risks in the bond market. (New bonds) have very low interest rate levels. But at some point, the economy will strengthen and those interest rates will rebound. Investors who have pushed out further on the yield curve by investing in longer-term bonds will then see a greater decline in the principal value of their investments."
Therefore, in 2011, I am going to direct no new money into bonds. Keep in mind, my allocation into the bond market won't change at all, just the new money is going to be directed 100% into the stock markets, so when I rebalance quarterly, there will be bigger moves than $200 here to there like I saw this past year.
The active fund that I am introducing is the Vanguard PRIMECAP Fund (Fund #59). Unfortunately for individual investors who may be interested in the fund, this is a closed fund. The only new money coming into this fund is through a Vanguard 401(k), which I have through work so I am able to invest money there.
Mo Ansari always discusses the importance of having an "exit strategy" in place when introducing a new fund. At this point, I am looking for this fund to take the place of half my large stock money, so whereas I have a portion in international stocks, a portion in aggressive stocks, and a portion in large stocks, I will now have portions in international stocks, aggressive stocks, indexed large stocks, and active large stocks. As I age and grow more conservative, my balance in aggressive stocks will dwindle first. If all goes well, then I would keep this new fund in balance with the index fund. If its performance consistently under-performs the index fund for two straight years, then I will move out of the fund.
Unlike two years ago when I directed only new money into the Vanguard Total Bond Market Index fund, I am going to boost this one by moving some money into the new fund. The overall focus is on my asset allocation, which currently looks like this:
Fund # - Real / Current / Target
Fund 24 - 25% / 25% / 25%
Fund 29 - 5% / 5% / 5%
Fund 84 - 10% / 10% / 10%
Fund 85 - 50% / 50% / 50%
Fund 113 - 10% / 10% / 10%
What I am looking to do is change it to look like this:
Fund # - Real / Current / Target
Fund 24 - 25% / 10% / 25%
Fund 29 - 5% / 0% / 5%
Fund 59 - 0% / 50% / 25%
Fund 84 - 10% / 0% / 10%
Fund 85 - 50% / 35% / 25%
Fund 113 - 10% / 5% / 10%
Keep in mind, I am not abandoning my own instincts either. Another popular market right now is the gold market, and in my personal opinion, I would compare this market to the tech stocks of 2000 and the real estate market of 2006. I think the investors in those notorious pitfalls are looking more towards gold than they are to bonds. I have the option to invest in the Precious Metals & Mining fund, but I am going to shy away from it. Although my brother-in-law noted that his father has been encouraging him to invest in that market, and Mo Ansari has been presenting both sides of the story, so hopefully, that market will either boom or peter in the next year. But I'm expecting it to tank just based on the personality of the investors I believe getting into that market right now.
This is my overview for 2011. I am passively retreating from bonds in the short term but I am retaining them in my asset allocation, and I am actively introducing actively-managed funds in hopes that they can outpace the markets most years.
DISCLAIMER: I am neither licensed nor permitted to give specific financial advice, so if you want investment recommendations, then please consult with a financial advisor or reputable financial sources; my favorite website is CNNFN.com and my favorite radio station is KFNN 1510 AM "Radio That Makes You Money." Additional information and financial tools can be found at Vanguard.com. The investment decisions presented above were tailored to my risk tolerance and my financial goals.
It's an old adage, and it's so very true. At the ages when we can take the greatest risk, we feel the most insecure. At least, in terms of finances. Therefore, next year, for the first time in my life, I am going to trust the words of the media, or at least, let a financial advisor guide me in my upcoming fiscal year. Of course, I'm talking about Mo Ansari (president of Compaq Asset Management) whose radio show I listen to most evenings on KFNN 1510, Radio That Makes You Money.
Honestly, there's another caveat fueling my decision as well. I want to introduce an actively managed fund into my portfolio, also for the first time in my life. Two years ago, I introduced the Vanguard Total Bond Market Index fund to provide a stronger hedge against stocks. For the past several months, and every time I listen to Market Wrap nowadays, Mo Anasari is warning investors that the bond market is doomed for a retreat due to overcrowding, comparing it to the tech stocks of 2000 and the real estate market of 2006. Granted, if you want to get someone's attention, those two events are how to do it, so he may just have a flair for drama, but I respect his opinion, and the only way I will be able to track his word is if I put it into active practice.
In fairness, it is not just Mo Ansari advising against the bond markets. Even Vanguard.com, which provides my 401(k) has an article entitled "Vanguard's investment chief cautions bond investors." Inside is an interview with Chief Investment Officer Gus Sauter who notes, "I'm increasingly worried that people aren't aware of the risks in the bond market. (New bonds) have very low interest rate levels. But at some point, the economy will strengthen and those interest rates will rebound. Investors who have pushed out further on the yield curve by investing in longer-term bonds will then see a greater decline in the principal value of their investments."
Therefore, in 2011, I am going to direct no new money into bonds. Keep in mind, my allocation into the bond market won't change at all, just the new money is going to be directed 100% into the stock markets, so when I rebalance quarterly, there will be bigger moves than $200 here to there like I saw this past year.
The active fund that I am introducing is the Vanguard PRIMECAP Fund (Fund #59). Unfortunately for individual investors who may be interested in the fund, this is a closed fund. The only new money coming into this fund is through a Vanguard 401(k), which I have through work so I am able to invest money there.
Mo Ansari always discusses the importance of having an "exit strategy" in place when introducing a new fund. At this point, I am looking for this fund to take the place of half my large stock money, so whereas I have a portion in international stocks, a portion in aggressive stocks, and a portion in large stocks, I will now have portions in international stocks, aggressive stocks, indexed large stocks, and active large stocks. As I age and grow more conservative, my balance in aggressive stocks will dwindle first. If all goes well, then I would keep this new fund in balance with the index fund. If its performance consistently under-performs the index fund for two straight years, then I will move out of the fund.
Unlike two years ago when I directed only new money into the Vanguard Total Bond Market Index fund, I am going to boost this one by moving some money into the new fund. The overall focus is on my asset allocation, which currently looks like this:
Fund # - Real / Current / Target
Fund 24 - 25% / 25% / 25%
Fund 29 - 5% / 5% / 5%
Fund 84 - 10% / 10% / 10%
Fund 85 - 50% / 50% / 50%
Fund 113 - 10% / 10% / 10%
What I am looking to do is change it to look like this:
Fund # - Real / Current / Target
Fund 24 - 25% / 10% / 25%
Fund 29 - 5% / 0% / 5%
Fund 59 - 0% / 50% / 25%
Fund 84 - 10% / 0% / 10%
Fund 85 - 50% / 35% / 25%
Fund 113 - 10% / 5% / 10%
Keep in mind, I am not abandoning my own instincts either. Another popular market right now is the gold market, and in my personal opinion, I would compare this market to the tech stocks of 2000 and the real estate market of 2006. I think the investors in those notorious pitfalls are looking more towards gold than they are to bonds. I have the option to invest in the Precious Metals & Mining fund, but I am going to shy away from it. Although my brother-in-law noted that his father has been encouraging him to invest in that market, and Mo Ansari has been presenting both sides of the story, so hopefully, that market will either boom or peter in the next year. But I'm expecting it to tank just based on the personality of the investors I believe getting into that market right now.
This is my overview for 2011. I am passively retreating from bonds in the short term but I am retaining them in my asset allocation, and I am actively introducing actively-managed funds in hopes that they can outpace the markets most years.
DISCLAIMER: I am neither licensed nor permitted to give specific financial advice, so if you want investment recommendations, then please consult with a financial advisor or reputable financial sources; my favorite website is CNNFN.com and my favorite radio station is KFNN 1510 AM "Radio That Makes You Money." Additional information and financial tools can be found at Vanguard.com. The investment decisions presented above were tailored to my risk tolerance and my financial goals.
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