In my last post, dated early October, I concluded: "To me it looks like the smart money is quietly accumulating shares of equities and selling fixed income assets." So far, nothing has happened to disappoint me. In fact, TIP continued its plummet until recently, giving me (at last) a chance in December to buy some 5-year TIPS on the secondary market at a positive (though very low) yield-to-maturity.
Although my return for 2016 was lackluster, I managed to end with a little more than I started with, which is satisfactory considering I had to withdraw more than $50K for RMD. This year's RMD will thus be a little higher than that, for which I'm grateful.
One little fillip in the RMD business that I'm starting to accommodate to is that you can contribute some of this amount directly to a charity. These "Qualified Charitable Distributions" can apparently be written off on your federal tax return even if you don't itemize. But note that the contribution must go directly from your retirement account to the charity to receive this favorable tax treatment.
It's impossible to know what the future holds under our new President. I'm really hoping he's smarter than he looks... his ability to outfox a bunch of smart people (nearly all pollsters, commentators, Democrats, and Republicans) so far is a hopeful sign.
Jeff Miller is Strongly Bullish and has been right so far. Erin Heim continues to equivocate; her dad called the new bullishness precisely in July. All my charts look sunny, though nobody can predict the short term.
I'll continue to sequester double my RMD in 5-year TIPS when yields are positive and to follow NoLoad FundX portfolio advice this year, at least until I can see some reason not to do so.