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XSE6MGLIV0MJI Automated investment
accounts are booming.
Meet the teachers
quitting their jobs
The Fab Five are on a mission to transform Here’s how to find the one because of low pay and
everyday people. Here’s your personal playbook. that is right for you. dwindling benefits.
BY KRISTEN BAHLER BY MEGAN LEONHARDT BY JENNIFER CALFAS
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it’s attainable. The rally that began in
March 2009 could become
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A little extra convenience
can really cost you. %GXYEPP]%TTPI
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1SYRXEMR2EXMSREP4EVO7II Our savvy readers told us
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4EVOWJSV=SYV1SRI] =SYV6¬WYQ¬ 2S[ passing them along.
We crunched the numbers on One so-called skill could doom
IN THIS ISSUE America’s most beautiful
'30912
your job prospects.
Letters & Comments vacation spots to find which
The MONEY 50/50 ones deliver the best value. 8LIWI%VIXLI
THE MONEY TALK WITH …
&IWX&EROWJSV7IVZMGI
Cover photograph by ART STREIBER 1IQFIVWERH:IXIVERW (EZMH7IHEVMW
Styling: Michael Cioffoletti/Art Department. Grooming: Samantha Fryling/Art Department and Juanita Lyons/ Many financial institutions The acclaimed humorist
E T H A N W E LT Y/G E T T Y I M A G E S /A U R O R A C R E AT I V E
Celestine. On Karamo: John Varvatos navy suit, H&M navy long-sleeve polo, To Boot black sneakers. On Antoni:
Dries Van Noten silk jacket, Hiro Clark white T-shirt, Levi’s washed black jeans, his own Gucci loafers. On Jonathan:
claim to ofer military perks, has always loved money.
John Varvatos purple sweater, his own AllSaints jeans, his own Saint Laurent boots. On Bobby: John Varvatos navy but only a few banks and credit Now he finally has some.
suit jacket, his own COS sweatshirt, his own Zara jeans, his own Allbirds sneakers. On Tan: Wittmore blue
button-down oxford from shopwittmore.com, Thom Browne gray plaid suit, his own Adidas sneakers. unions really stand out. BY M I K E AY E R S
MONEY (ISSN 0149-4953) is published monthly (except combined issues in January/February and June/July) by Time Inc., a wholly owned subsidiary of Meredith Corporation. PRINCIPAL OFFICE: 225 Liberty Street, New York, N.Y. 10281-1008.
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M O N E Y. C O M AUGUST 2018
“How far will $1,000,000 get me
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Personal Capital Advisors Corporation. SEC Registration does not imply a certain level of skill or training. © 2018 PERSONAL CAPITAL CORPORATION. ALL RIGHTS RESERVED.
% 9 + 9 7 8 : 3 0 9 1 )2 9 1 & ) 6
MONEY EDITORIAL
M E R E D I T H N AT I O N A L M E D I A G R O U P
PRESIDENT Jon Werther MEREDITH MAGAZINES PRESIDENT Doug Olson PRESIDENT OF MEREDITH DIGITAL Stan Pavlovsky
PRESIDENT OF CONSUMER PRODUCTS Tom WitschI CHIEF REVENUE OFFICER Michael Brownstein
CHIEF MARKETING AND DATA OFFICER Alysia Borsa MARKETING AND INTEGRATED COMMUNICATIONS Nancy Weber
CHIEF CONTENT OFFICER Alan Murray DIGITAL DIRECTOR, NEWS GROUP Edward Felsenthal
EDITORIAL OPERATIONS AND FINANCE DIRECTOR George Kimmerling
M E R E D I T H C O R P O R AT I O N
PRESIDENT AND CHIEF EXECUTIVE OFFICER Tom Harty CHIEF FINANCIAL OFFICER Joseph Ceryanec
CHIEF DEVELOPMENT OFFICER John Zieser PRESIDENT, MEREDITH LOCAL MEDIA GROUP Paul Karpowicz
EXECUTIVE CHAIRMAN Stephen M. Lacy VICE CHAIRMAN Mell Meredith Frazier
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M O N E Y. C O M AUGUST 2018
0)88)67
'311)287
AN ANTI-TRUMP BIAS?
%R%MVFRF I am noticing a trend.
VIRXEPRIEV
7ERXE1SRMGE MONEY magazine seems to
include anti-Trump innu- COMMENTS
endo in a lot of articles ABOUT
[June/July]. My financial RECENT
fortunes are doing better STORIES ON
now than they have in MONEY.COM
years, and I give partial
credit to President Trump. I Re: “Jay Leno Is
would like to hope you are Worth $350 Million
not bashing Trump inten- and Owns 181 Cars
tionally in your articles. but Says He Still
GREG THIBODEAUX Lives Like Someone
Alamo, Calif. Who’s on Their
Last Dime”
TRUMP’S PROMISE FOR “I love how people
ROADS AND BRIDGES don’t understand what
Thank you, MONEY, for richer people mean by
your article “Five Miscon- living ‘frugally.’ Just
ceptions About the Trump because he has 181
Bump” [June/July]. You’re cars doesn’t mean
right: President Trump has anything. That’s what
not addressed our infra- gives him wealth.”
RE: WHERE AIRBNB WILL SAVE YOU MONEY [JUNE/JULY] structure as much as
4E]1SVI
economists predicted. Re: “Would you
Rising gas prices have set quit your dream job
back my financial plan, for any less than a
7EZI0EXIV
and potholes have im- $10,000 pay
pacted my commute. increase?”
PAUL FEINER
“If there are crappy
Greenburgh, N.Y. benefits and not
enough vacation and
I don’t think it’s fair to compare the sick time, then the
A WORD OF CAUTION
cost of complete apartment rentals I love reading MONEY, but $10,000 is not much.”
on Airbnb with single hotel rooms. I think “The Best Banks Re: “Do you think
for College Students” you will become a
Airbnb rentals typically come with [June/July] should have millionaire one day?”
their own kitchen, so you can save cautioned young adults “Depends on which
money on food by cooking for your- about carrying too much currency. Pesos?
debt before recommending Already there.”
self. Plus, you get more space than checking accounts.
you would in a cramped hotel room. MICHAEL RODRIGUEZ GOODSON
C H U C K D U N N I N G , La Jolla, Calif. St. Paul
Corrections
& Clarifications
[JUNE/JULY] “The Best Banks for
OUR The graphs and charts in your Midyear Investor’s Guide were not only eye-catching
but easy to follow. Kudos to your staf artists who designed them. I’ll give this issue College Students” mistakenly
FAVORITE
COU RT ESY O F A I R B N B
COMMENT to my children and friends who have little interest in finance to help them better identified the number of free
understand investing. ATMs ofered by PNC as 19,000.
E M I L I E H A R R I S , La Quinta, Calif. The actual number is 9,000.
M O N E Y. C O M AUGUST 2018
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AUGUST 2018 M O N E Y. C O M
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With careful planning—and a lot of working weekends—you can do it too. BY I A N S A L I S B U RY
was almost identical to the one where they various jobs to help defray the cost. But they
were already living. When they moved in, also had a thrifty lifestyle. When they bought
their roommates came too. The rent the their first home, she was working as a
couple collected was enough to cover their freelance writer, while her husband had a
housing costs, enabling them to live for free. regular nine-to-five job at a transportation
“A lot of our friends were living in places company. Together they earned $63,000. In
with granite countertops,” says Pant. “All addition to paying just $400 in rent, Pant
In nine years
$20,000 you’ve saved $50,000, own home, Pant says the lack of
enough to
$10,000 put 20% down. pretension became an unlikely
advantage. “I felt at home in the
$0
Year 1 Year 3 Year 6 Year 9
neighborhoods where my friends
who grew up in Starbucks neigh-
NOTES: $61,000 is the median pay for workers ages 25 to 34. The median price for existing U.S. homes in March was
$252,000. SOURCE: Veritas Urbis Economics borhoods might not have felt at
home,” she says.
BAS K E T: H E N R I K 5 0 0 0 — G E T T Y I M AG ES ; C U P : P OST E R I O R I — G E T T Y I M AG ES ; P R E T Z E LS A N D D I A P E RS : K E I T H H O M A N —A L A M Y; R I C E : A RT I ST E E R — G E T T Y I M AG ES ; F RU I T: A N N E ST E P H E N SO N — G E T T Y I M AG ES ; C H I C K E N : M I C H A E L N E E LO N —A L A M Y
0MZI SHOPPING
WHAT (-%4)67
TO SKIP New parents go
through as many as
10 diapers in a day, and
Heiss says they’re
almost always cheaper
46)'98463(9') on Amazon than at
Grocery stores know grocery stores, espe-
you love convenience. cially if you order during
So “they will up that the website’s monthly
price as much as possi- sales, when diapers are
ble,” says Amiyrah ofered for just 9¢ or
Martin, a blogger at Four 10¢ each.
Hats & Frugal. For in- Without the sale,
stance, a 14-ounce box the price diference is
of precut celery sticks smaller, but Amazon
at the Kroger in Mount still comes out ahead:
Pleasant costs $2.99, A pack of 54 size 1
but a large celery bunch diapers is $11.99 at
that could produce well Amazon (about 22¢ per
over a pound, once diaper), while the
chopped, goes for 35-count pack for the
just $1.59. same size diaper sells
for $8.99 at Kroger
(26¢).
46)4%'/%+)(
72%'/7
The same goes for '33/)(',-'/)2
single-serve snack bags At the Kroger in Mount
of nuts or pretzels. Bet- Pleasant, you can find a
8LMRKW=SY
ter to just bag them 12-ounce bag of Tyson
yourself, says Laurie Oven Roasted Chicken
Heiss at Passionate Breast for $5.49, or
7LSYPH 2IZIV&Y]
Penny Pincher. At about 46¢ per ounce.
Kroger, a package con- But a whole pound of
taining 10 small bags of raw Heritage Farm
pretzels, each just un- chicken breast goes
EXE+VSGIV]7XSVI
der one ounce, costs for $1.99, or 12¢ per
$4.29—while the ounce—about a 75%
16-ounce value bag discount. Buy your
costs only $3.23 and poultry raw, and invest
contains roughly 60% 45 minutes in roasting
more of the snacks. it yourself, Heiss says.
A little extra convenience can really cost you.
*63>)26-') BY A L L A N A A K H TA R ,397);%6)7
Frozen vegetables can Grocery stores ofer
be a money saver since plates and other
they last forever. The ALWAYS IN SEARCH of higher profits, supermarkets have been serving pieces to tempt
argument doesn’t hold wooing customers with products that save time but aren’t you into impulse buys.
up with rice, which lasts necessarily great bargains—like prepared food you could “Just wait,” Martin
for years anyway, says advises. “Go to a store
Martin. At Kroger, a box easily have cooked yourself and home goods that usually sell that specializes in
of cooked, frozen white for less at other stores. housewares.” Such
rice costs $1.89 and We asked budget-minded bloggers to identify which products are almost
produces 12 ounces of always better of
cooked rice; a 32-ounce supermarket oferings are most likely to drain your wallet, bought at an Ikea or a
bag of grain rice costs then ran the numbers ourselves. (To prevent having results HomeGoods, she says,
$1.39—50 cents less— skewed by the high prices in New York City, where most adding: “Please, please,
and yields about 90 please, do not get them
to 100 ounces once MONEY stafers live, we used prices from a Kroger in from your grocery
cooked. Mount Pleasant, Mich.) Here are the items to avoid. store.”
When it comes to managing our funds, we share the same active philosophy. Our investment
teams seek to navigate down markets, find opportunities, and manage risk so you can stay on track
toward reaching your goals.
100% of T. Rowe Price Retirement Funds beat their 10-year Lipper average as of 3/31/18.*
Put our active investment approach to work for you today.
Call our investment specialists at 877-872-5475 or go to troweprice.com/activematters
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus
or, if available, a summary prospectus containing this and other information, call us. Read it carefully.
*36 of our 39 Retirement Funds (Investor, Advisor, and R class) had a 10 -year track record as of 3/31/18 (includes
all share classes). 36 of these 36 funds beat their Lipper average for the 10 -year period. 39 of 39, 39 of 39, and 35
of 36 of the Retirement Funds outper formed their Lipper average for the 1-, 3 -, and 5 -year periods ended 3/31/18,
respectively. Calculations are based on cumulative total return. Not all funds outper formed for all periods. (Source
for data: Lipper Inc.)
Past performance cannot guarantee future results. All funds are subject to market risk, including possible loss of principal.
'SYWMRW8SSOE
Sabin Lomac and Jim Tselikis. Raised in
Maine, the cousins channeled their love of the
state’s local lobster into Cousins Maine
XS1MPPMSR
and beyond—and is now earning them eight-
figure revenues.
It wasn’t quite as simple as it may seem,
MR7M\=IEVW
though. Lomac, 37, and Tselikis, 33, put up
quite a bit of their own money and risked a lot
J O C E LY N G A B R I E L
purveyors to ship the shellfish out Lomac and Tselikis have fran- initially and needed to be daring
to California. chised their business, which if this idea was ever going to
The upside became clear as includes locations in North survive. “The only time our
soon as customers began eating. Carolina, Texas, and even Taiwan. business has not gone up in
“There were 80 people in line They have more restaurants in trajectory is when we were
raving about the product,” the works too. cautious or timid,” he says.
AUGUST 2018 M O N E Y. C O M
;SVO GENDER PAY
%,MHHIR&SRYW
two major international surveys.
The researchers dug through
JSV;SVOMRK1SQW
family and career data on more
than 100,000 men and women and
concluded that children of
working mothers do tend to lead
diferent lives than those with
New research shows that daughters raised by mothers stay-at-home moms. But diferent
with careers earn more and have better jobs. doesn’t mean bad.
BY K R I ST E N BA H L E R Women who grew up with
working mothers are more likely
to have careers themselves than
those with stay-at-home moms
and are also more likely to have
better, higher-paying jobs, the
researchers found. According to a
2015 study from the same team,
B A B Y: J AV I E R S Á N C H E Z— G E T T Y I M A G E S ; C H A I R : P H O N L A M A I P H OT O — G E T T Y I M A G E S ; W O M A N : P I O T R M A R C I N S K I / E Y E E M — G E T T Y I M A G E S
daughters of working mothers in
the U.S. make about 23% more
than daughters of stay-at-home
mothers. And across the 25
developed countries represented
in that survey, 21% of women
whose mothers had worked got
supervisor jobs, compared with
18% of women who had stay-at-
home mothers.
“There’s a lot of talk about
why women work,” says Kathleen
McGinn, the study’s author and
a professor at Harvard Business
School. “A lot of those questions
presume that somehow, it’s
detrimental to their families.
That’s a whole bunch of ‘mother
guilt’ based on almost no
findings.”
EVERY DAY, MORE THAN 25 MILLION moms commute, clock in, and climb This doesn’t mean stay-at-home
career ladders across the country. And that number is growing. moms are damaging their chil-
At the same time, a full third of Americans believe the “ideal situa- dren’s futures. McGinn stresses
tion” for young children is one in which their mother doesn’t work at all, there isn’t one “right” way to raise
according to a 2015 Pew Research Center report. Only 4% say the same a child, and neither option is
of fathers. inherently detrimental. But as
Yet according to a growing body of research, working mothers have an more moms keep working—some
overwhelmingly positive influence on their children, with an emphasis on wrestling with the guilt of leaving
daughters in particular. their child in the care of others—
In a study published in the journal Work, Employment and Society in this new research is a tiny fist
April, a team of workplace experts laid out a trove of data drawn from bump for those in the struggle.
Advisory services are provided by TD Ameritrade Investment Management, LLC, a registered investment advisor. All investments involve
risk, including risk of loss. TD Ameritrade, Inc., member FINRA/SIPC. © 2018 TD Ameritrade.
;SVO CAREER ADVICE
(IPIXI8LMW*VSQ
But there is an exception to
this rule: if you’re sending a
résumé in response to an ad that
“If a client told me she was going to write ‘profi- says Ben Guez, founder of digital
cient in MS Oice suite’ on her résumé, I’d ask her, marketing agency Laxir. “I don’t
‘Why stop there? Can you also use a knife and fork?’ ” really [care] if you were great [at]
says career consultant Carlota Zimmerman. PowerPoint in school. It won’t
The only thing worse than using “proficient in bring value to the company.”
Mutual of America® and Mutual of America Your Retirement Company® are registered service marks of Mutual of America Life Insurance Company,
a registered Broker/Dealer. 320 Park Avenue, New York, NY 10022-6839.
;SVO SPECIAL REPORT
BEST BANKS
BE 3
1-0-8%6=
8LIWI%VIXLI
&IWX&EROW
JSV7IVZMGI
1IQFIVW
ERH:IXIVERW
Many banks and credit unions claim to
ofer perks, but only a few stand out.
BY K A I T L I N M U L H E R E
comes with
A LIFE IN UNIFORM free ATM withdrawals as well as prepping for a “PCS” (a permanent
plenty of challenges. Picking a online and mobile banking features. move for a reassignment), its staf
bank shouldn’t be one of them. “I may need to access my account can walk you through your financial
While it’s not hard to find from home or work or Alaska or the to-do list, from notifying your
accounts designed for service Middle East,” says the writer behind landlord to adjusting monthly bills
members and veterans that boast the Military Dollar blog. (She set on autopay.
attractive terms and conditions, in declined to have her name printed As always, you should compare
reality many of these aren’t any here because she’s on active duty.) national options with what’s
better than the best accounts For veterans, we shifted the available locally. A handful of
available to the general public. emphasis to banks that ofer a MONEY’s 2017 Best Bank in Every
How can you pinpoint the ones variety of low-fee accounts with State winners, for example, are open
that are? MONEY’s got your six: We competitive interest rates to help to military members or have special
assessed the country’s largest banks meet longer-term financial goals. accounts for them, including Tinker
and credit unions to find which Banks with a history of serving Federal Credit Union in Oklahoma,
accounts really ofer the best deals military families ofer other perks Synovus Bank in the Southeast, and
for members of the military. too. For one, they understand the WesBanco in Appalachian states.
When naming any top bank, unique aspects of military life, says When national scores were
MONEY prioritizes accounts with Lacey Langford, a veteran and tallied, our two winners—USAA
the lowest fees and highest interest financial counselor in Summerfield, Federal Savings Bank and Navy
G E T T Y I M AG ES
rates. But for active-duty service N.C., who works with military Federal Credit Union—were head
members who are frequently families. If, for example, you call a and shoulders above the rest. Here’s
relocating, we put a special focus on military-friendly bank to say you’re what each has to ofer.
prints or facial or vocal tically. When account The credit union has a
very low ATM fee ($1),
recognition are more holders withdraw mon- &IWXJSV
secure than a pass- ey at an international :IXIVERW but it still charges you
word.) USAA’s strong ATM, they’re charged a 2EZ] each time you with-
reputation for online 1% transaction fee, *IHIVEP draw at an out-of-
service—plus outstand- plus the standard out- 'VIHMX9RMSR network ATM.
ing user reviews of its of-network and ATM- B RAN CHES : 288,
including 78 on
WHY IT WINS: military bases
Navy Federal ofers a
8;31-0-8%6=&%2/43;)6,397)7,)%(83,)%(
strong mix of accounts KEY TERMS
USAA NAVY FEDERAL WINNER to meet a range of fi-
FLAGSHIP CHECKING
Interest on checking accounts 0.01% 0.05%–0.35% Navy nancial priorities once
you leave the military. Monthly service fee:
Nonsufficient funds fee $29 $29 Tie
If you need a basic $10, waived with a
Out-of-network ATM fees 10 free, then $2 $1 USAA checking account, the $1,500 average daily
ATM surcharge refunds $15 $0–$20 USAA no-frills Free EveryDay balance
Checking will work
Savings account fee $0 $0 Tie Interest: 0.35% on any
nicely. For service
balance
Interest on savings accounts 0.09%–0.20% 0.25% Navy members and veterans
One-year CD APY 0.71% 1.76% Navy who carry larger bal- Out-of-network ATM
ances, consider the fee: $1. Also refunds up
12-month personal loan Starting APR: 8.99% Starting APR: 7.99% Navy
Flagship Checking ac- to $10 of ATM owners’
Average app scores 4.3 4 USAA count, which pays in- charges if you set up a
NOTES: Interest rates show a range based on all the accounts offered at USAA or Navy Federal. ATM surcharges are
terest and ofers some regular direct deposit
applied by the ATM owner on top of your bank fees. App scores are based on iTunes and Google Play reviews. ATM rebates. The credit into the account.
MONEY reviewed its universe of the country’s 90 largest brick-and-mortar banks and 50 largest credit unions, as identified by bank consultancy firm
Novantas, and considered any banks that offer accounts reserved for military members. We also reviewed a handful of smaller credit unions open to
military members. This gave us a universe of 21 financial institutions, including nine national banks and 12 credit unions that serve military members.
Bankrate.com, MONEY’s partner for its bank ratings, helped collect data on fees, interest rates, and account requirements in July and August 2017.
MONEY independently fact-checked all account information in May 2018. Winners were chosen based primarily on lower monthly and ATM fees,
higher interest rates, and strong mobile app ratings in the iTunes and Google Play stores. —Additional reporting by Megan Leonhardt
AUGUST 2018 M O N E Y. C O M
CERTAIN.
401(K)
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
*Guarantees are subject to the claims-paying ability of the issuing insurance company.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2016 FMR LLC. All rights reserved.
775226.3.0
-RZIWX
8LI8VYXL
ON AUG. 22, the bull market that sprang
to life on March 9, 2009—in the
&ILMRHXLI
aftermath of the global financial panic—will
turn 3,453 days old. At that point, this bull
will become the longest rally ever, surpass-
3PHIWX&YPP
ing the stock market’s epic run from Oct. 11,
1990, to March 24, 2000.
1EVOIXMR,MWXSV]
But there’s a huge if built into that
assumption. The bull is sure to reach this
milestone “only if we hit a new all-time high”
between now and then, notes Sam Stovall,
chief investment strategist at CFRA.
The rally that began in March 2009 is on the You see, on Jan. 26, the S&P 500 rose to a
verge of becoming the longest ever. But are record level of 2,872.87. Since then, stocks
you sure about that? BY PAU L J . L I M have fallen more than 5%. If the market
doesn’t make it back to its former peak, then
it’s entirely possible that this bull market
could have died at the beginning of this year.
We just may not realize it yet.
Call it a foible of Wall Street. define bull and bear markets. The Feb. 11, 2016, shares of small U.S.
Sometimes you don’t know what most commonly accepted marker companies fell more than 26%.
type of market you’re in until you of a bull and a bear is a 20% rise or And between May 21, 2015, and
look at it in retrospect. “You have fall in the broad market. And since Feb. 11, 2016, the broad U.S.
to put the celebration on hold until the S&P 500 hasn’t fallen by more market lost more than a quarter of
we find out later if the bull is in than 20% since this rally began in its value, if you measure it with the
fact still alive,” says James Stack, early 2009, conventional wisdom Value Line Geometric Index.
president of InvesTech Research. says the bull is alive and well. This helps explain why Ned
“If we go down 20% from that But does it have to be the S&P Davis Research, a respected
January high, then January was 500? Between June 23, 2015, and market research firm, believes a
the end of the bull.” bear market actually occurred in
Something similar occurred late 2015. And in turn, Ned Davis
after the bursting of the dotcom believes the current bull was born
bubble on March 24, 2000. When The Oldest Bull? in February 2016, making this rally
stocks began to fall after hitting less than 2½ years old.
The stock market rally that began on
what was then a record high, Meanwhile, there are others
March 9, 2009, could become the oldest
investors initially thought it was a on record in August. who believe this bull actually
momentary lull in the rally. Some sprang to life in 2011, after a bear
called it a buying opportunity. BULL MARKET’S AGE IN DAYS that spanned from May to October
Investors didn’t realize that the 2011. Purists disagree, since the
bull had actually died until nearly 2009–present* S&P 500 fell only 19.9% during
a year later, on March 12, 2001, 3,453 days that stretch, just shy of the oicial
when the S&P 500 lost more than 2002–07 20% marker. However, that’s based
20% of its value from that March 1,862 on the S&P 500’s closing values,
2000 peak. not its peaks and troughs through-
Do market watchers think 1990–2000 out the middle of each trading day.
we’re in the same boat? Most 3,452 If you look at midday prices, the
don’t. “I totally believe that this 1987–90 market actually fell around 22%
bull market is still intact,” says 955 in 2011.
Henry Smith, co–chief investment 1982–87
Stack isn’t convinced. “To be
oicer for the Haverford Trust Co. truly objective, you have to draw a
1,839
Of course, history says we may line someplace,” he says. Stack
have to reserve judgment for at 1974–80 believes that to be consistent, you
least a few more months. 2,248 have to measure these markets
1970–73 using day-end prices.
INSTEAD OF THE OLDEST RALLY, 961
COULD THIS BE A BABY BULL? YOU WON’T BELIEVE WHAT THE
1966–68
To recap: This bull market is BEST-PERFORMING STOCKS ARE
784
either about to turn 9½ years old, If you read the headlines, you’d
or it died several months ago. 1962–66 assume that the best-performing
Actually, there’s a third option. 1,323 stocks in this record bull have
There are those who believe 1957–61 been tech. And not just any tech
that the bull market may actually 1,512 shares—the so-called FAANG
be a lot younger than people give it stocks, which stands for Facebook,
1949–56
credit for. And because of its Amazon, Apple, Netflix, and
2,607
relative youth, the bull may have Google-parent Alphabet.
many more years to roam. 1942–46 Yes, those stocks have been on
It all comes down to how you 1,492 a tear. But only one of the FAANG
M O N E Y. C O M * Assumes bull market in S&P 500 survives until Aug. 22, 2018. Based on S&P 500 level on June 18. SOURCE: Standard & Poor’s
stocks is among the top 20–
performing stocks since this bull 4988,)')0)&6%8-3232,30(
started on March 9, 2009, accord-
ing to Morningstar. 928-0;)*-2(3980%8)6-*8,)
At the top of the list: Patrick
Industries (PATK), a small company
&900-7-2*%'878-00%0-:)š
—JAMES STACK, PRESIDENT OF INVESTECH RESEARCH
that manufactures furniture,
shelving, and paneling used in
homes and recreational vehicles.
It’s certainly not as sexy as
artificial intelligence or streaming listen to most market watchers of boring companies that often get
media, but the stock is up a now, they’ll tell you that this bull overlooked. Well, fast-forward to
staggering 39,800% so far in market is nothing like the record- today: “After the longest run of
this bull market. breaking ’90s bull. outperformance of growth stocks
Many of the other top- Are you sure about that? Like ever, we think value may be poised
performing stocks in this bull are that bull, this one emerged after a for a comeback,” notes John Lynch,
just as boring: MGP Ingredients major financial crisis—the chief investment strategist for LPL
(MGPI)—a distiller that also supplies savings-and-loan crisis in the late Financial. On our MONEY 50 list of
ingredients used by other compa- 1980s and the global financial recommended ETFs, you can find
nies to make distilled spirits—has panic in 2007–08. And like that such stocks in Vanguard Value ETF (VTV)
seen its stock rise 17,500%. Sleep bull, this one was led by tech. In or Invesco FTSE RAFI U.S. 1000 ETF (PRF).
Number Corp. (SNBR) sells specialized, the late ’90s, investors were
adjustable beds to consumers; fixated on just four stocks—the HOLD STOCKS FOR THE LONG RUN
you’ve probably seen the com- four horsemen of tech: Microsoft, Even as stock prices have re-
pany’s infomercials. The stock is Intel, Cisco Systems, and Dell. turned to near record highs, faith
up 14,800% since March 2009, Today, Wall Street’s focus is on in equities hasn’t. Between 2001
which is around double the gains just five names—the FAANGs. and 2008, 62% of U.S. adults
for Netflix. Throughout the ’90s bull, owned stocks directly or through a
Then there’s the rental car investors overlooked the fact that fund or in their retirement
company Avis Budget Group (CAR). In stock market valuations were at accounts, according to Gallup. But
the age of Uber and Lyft, you’d record highs because they thought today, only 54% of adults do so.
think Avis would be left behind. faster-than-historic economic After a “lost decade” in which
But the rental-car giant is riding growth justified high price/ stock values went pretty much
the coattails of autonomous earnings ratios for stocks. Today, nowhere from 2000 to 2012, it’s
vehicles by partnering with the P/E for the S&P 500, based on not surprising that investors are
Alphabet to support the tech 10 years of averaged profits, is back wary. But with interest rates and
giant’s fleet of driverless cars. The to historically high levels—32.1, or inflation on the rise, it’s risky to be
stock is up 10,500% in this bull. double the historical average. making big bets on bonds.
Don’t make the same mistake. Okay, but isn’t a bear market in
HISTORY IS REPEATING ITSELF, SO The bear market of 2000 didn’t stocks a risk? Sure. But recent
DON’T MAKE THE SAME MISTAKES just end the historic ’90s bull; it history has shown that if you’re
The phrase “This time, it’s marked a turning point in the type willing to hold stocks for the long
diferent” was the undoing of of stocks that the markets favored. run—we mean decades—you’ll
millions of investors who got Out were highflying, expensive overcome short-term drops.
suckered into making big bets on “growth” stocks in rapidly expand- Thanks to this bull, for instance,
speculative Internet stocks in the ing industries. In were underap- stocks have gained 9.2% annually
late 1990s, only to see the dotcom preciated or beaten down “value” for the past 15 years—erasing the
bubble burst in 2000. Yet if you stocks, the bargain-priced shares efects of that lost decade.
AUGUST 2018 M O N E Y. C O M
-RZIWX THE FOUR-COMMA CLUB
-W%TTPI6IEPP]
boom in the trade of tulip bulbs,
whose prices soared in the 1630s.
“Tulip mania” is not only consid-
to be? If you look at just U.S. companies now, it may seem SOUTH SEA CO.
that way. In the S&P 500, Apple sits atop the list with Industry: Trade
a $900 billion market value, followed by Amazon and Value in today’s dollars: $4 trillion
Google-parent Alphabet, each at around $800 billion. The South Sea Co. positioned
But when you search globally and historically, you’ll itself as a British version of the
find plenty of examples of dominant corporations Dutch East India Co. in the 1700s.
that actually dwarf Apple’s market size—after you But instead of contributing to a
inflation-adjust their value to today’s dollars. Once you bubble (in the trade of tulip bulbs),
do that, several dominant companies have already South Sea was itself the bubble.
made it into the four-comma club. Dubbed by modern analysts as
WITH FROM 10-year default rate of just 0.09% between 1970 and 2015.* That means
while there is some risk of principal loss, investing in rated investment-grade
municipal bonds can be an important part of your portfolio.
YOU’VE get your principal back before the maturity date, subsequent municipal
bonds you purchase can earn more or less interest than the called bond.
According to Moody’s 2016 research,* default rates are historically low for
the rated investment-grade bonds favored by Hennion & Walsh.
HEARD OF? taxes. Tax-free can be a big attraction for many investors.
About Hennion & Walsh
Since 1990 Hennion & Walsh has specialized in investment-grade
It could be the tax-free municipal bonds.The company supervises over $3 billion in assets
in over 16,000 accounts, providing individual investors with institutional
smartest retirement quality service and personal attention.
© 2018 Hennion & Walsh, Inc. Securities offered through Hennion & Walsh Inc. Member of FINRA, SIPC. Investing in bonds
involves risk including possible loss of principal. Income may be subject to state, local or federal alternative minimum tax. When
interest rates rise, bond prices fall, and when interest rates fall, bond prices rise. *Source: Moody’s Investor Service, May 31, 2016
“US Municipal Bond Defaults and Recoveries, 1970–2015. Past performance is not a guarantee of future results.
-RZIWX THE FOUR-COMMA CLUB
M A C : H U LT O N A R C H I V E /G E T T Y I M A G E S ; J O B S : A P/ R E X / S H U T T E R S T O C K ; C O O K : B R E N D A N M C D E R M I D — R E U T E R S
the “Enron of England,” the South PETROCHINA STANDARD OIL
Sea Co. marketed itself as a Industry: Oil production Industry: Oil production
promising investment because it Value in today’s dollars: $1.7 trillion Value in today’s dollars: $1 trillion
enjoyed a trading monopoly with In the early 2000s, as global It wasn’t that long ago that Exxon
Mexico and South American financial markets were beginning Mobil, and not Apple, was the
nations. It was granted that to recover from the bursting of the most valuable company in the
monopoly by the British govern- dotcom bubble, two things started United States.
ment in exchange for helping to to surge—crude oil prices, which Yet what constitutes Exxon
finance the government’s debt, went from around $20 a barrel in Mobil today is just a small part of
amid war with Spain. 2002 to more than $140 by 2008, what was a much larger energy
Trouble is, Spain controlled as well as the Chinese economy giant more than a century ago.
many of those South American and stock market. Before 1911, when the U.S. govern-
trading posts, and the Treaty of Speculation in both drove ment ordered its breakup, John D.
Utrecht, which ended that war, left PetroChina, China’s largest oil and Rockefeller’s Standard Oil was the
Spain firmly in control of those gas company, beyond a $1 trillion largest company in the country.
territories, rendering the South market value, eventually reaching To understand how large
Sea Co.’s “monopoly” meaningless. $1.7 trillion in today’s dollars. And Standard Oil was, imagine Exxon
That didn’t stop its leaders from by the time PetroChina listed on Mobil, Chevron, parts of BP, and
making false claims of trade riches, the Shanghai Stock Exchange in Marathon Petroleum all in one
which sent the stock soaring, 2007, it surpassed Exxon Mobil as company. That’s essentially
reaching a peak value in today’s the world’s most valuable company. Standard Oil before the Sherman
dollars of about $4 trillion. By the Of course, that was around the Antitrust Act forced the monopoly
time the fraud was discovered and time of the global financial crisis, to unwind. Estimates pinpoint a
the bubble burst, company leaders after which oil prices collapsed, $1 trillion market cap if Standard
had sold their stakes. and Chinese stocks plunged. Oil were reassembled today.
24'5'06'&$;
%7MQTPI
before the passage of the Tax Cuts
and Jobs Act late last year.
That legislation is best known
8LMW'SYTPI
standard deduction to $24,000 for
married couples filing jointly.
But thanks to the law, taxpay-
8LSYWERHW
ers now can deduct no more than
$10,000 of their combined state
and local income taxes, property
taxes, and sales taxes. That
Relocating to a lower-tax and lower-cost state means there’s even more incentive
can make a lot of sense for retirees. BY S A R A H M A X for residents of high-tax states to
think about crossing state lines
in retirement.
CLARK HURST DISCOVERED Clear Creek Tahoe, a To understand how the math
golf community near Lake Tahoe, a few years works, consider this extreme ex-
ago when a friend invited him and his wife, Ellen, to ample of a retiree with just under
play the course for a day. $1 million in retirement income.
The Southern Californian parlayed that visit into Staying in California would
a temporary membership at the new Nevada golf cost this person more than
community. And then early last year, he and his wife $108,000 a year in state income
bought a lot where they eventually plan to build a taxes based on the 12.3% rate (the
home, just across the street from the course. “Because additional one percentage point
of the elevation and the backdrop, the ball gets a lot of to get to 13.3% kicks in after
hang time,” says Hurst, 58. “It’s really dramatic.” $1 million).
The same could be said for the potential tax Under the old tax rules, that
savings the couple can enjoy by relocating to Nevada same person could deduct the full
after they retire. amount of state income taxes paid
For Hurst, the allure of retiring to this golf commu- on his or her federal returns,
nity goes beyond its stunning 18-hole golf course, easy reducing the total tax burden by
access to skiing and hiking, or its more than 850 acres about $50,000. Under the new
of permanently protected open space. While retire- rules, most of that break goes away.
ment is still a ways of for the couple, Hurst figures Most taxpayers are only
that moving from a high-tax state (California) to a beginning to grapple with how the
no-tax state (Nevada) could save them tens of thou- 'PEVOERH new tax laws will ultimately
sands a year just in taxes. )PPIR,YVWX impact them, both on the positive
SJc&EOIVWƙIPH
He should know. He’s a certified public accountant. 'EPMJTPERXS and on the negative side, says Paul
FYMPHXLIMV Jacobs, a certified financial
THE CASE FOR MOVING TO A LOW-TAX STATE VIXMVIQIRX LSQI planner and enrolled agent with
MR'PIEV'VIIO
Sometimes the road to retirement means following 8ELSIRIEV Palisades Hudson Financial Group
the road less traveled, even if that takes you across 'EVWSR'MX]2IZ in Atlanta.
136)8,%2
=)%67
Indiana Oklahoma
Alabama Kansas
Texas Tennessee
Georgia Arkansas
Michigan Mississippi
Missouri
ś=)%67
Washington Illinois
Nevada Arizona
Colorado Wyoming
Delaware West Virginia
Virginia Utah
Pennsylvania Louisiana
Montana North Carolina
Minnesota New Mexico
South Dakota Kentucky
North Dakota Ohio
South Carolina Iowa
Florida Nebraska
Wisconsin Idaho
0)778,%2
=)%67
Hawaii Maryland
Taxes aren’t the only reason that according to Zillow. Compare that with
D.C. New Jersey
Nevada—where Clark and Ellen Hurst $543,000 in California. Nevada also
plan to retire—is a lower-cost state ranked 36th lowest among all states California Rhode Island
than California, where the Hursts cur- in 2017 in terms of cost of living. While Oregon Vermont
rently live. The median price of homes not the cheapest state, it comes in New York Connecticut
listed in Nevada is around $273,000, well ahead of California, ranked 49th. Massachusetts New Hampshire
Alaska Maine
TIME ESTIMATES, CALCULATED BY HOWMUCH.NET, ARE BASED ON LOCAL COST OF LIVING.
WITHIN EACH GROUPING, THE FIRST STATE LISTED HAS THE SHORTEST LIFESPAN FOR $1 MILLION. AUGUST 2018 M O N E Y. C O M
6IXMVI
3*
*
always be the best deal
3 available, says Edgar
Dworsky, founder and
editor of Consumer
World. “Treat it as one
possible option,” he says.
For those who want to
get their deals on the go,
the AARP Now mobile
app notifies you when
you’re in the vicinity of
any benefits and
discounts that you
program into the app.
Also check with your
local municipality to see
what kinds of discounts
might be available on
public transportation,
parking, property taxes,
and other expenses,
says Dworsky, who
takes advantage of
several such deals in his
city of Somerville, Mass.
4EWWIRKIVW
FSEVH%QXVEOŞW
'EVHMREPPMRIEX AMTRAK
XLI4VMRGIWXEXMSR Travelers 65 and older can
MR;IWX:MVKMRME get 10% off most rail fares
on most Amtrak trains.
Kathy Levine, 70, of Long
8LI
WORD HAS IT that early-bird Beach, N.Y., uses the
specials are going the way discount frequently to visit
&IWX7IRMSV
of VHS tapes and flip phones. her daughter and
But plenty of deals remain for granddaughter 200 miles
folks who were alive during the away. “I prefer not to drive
(MWGSYRXW
Johnson administration. the four hours it takes,”
When MONEY asked says Levine. “The Amtrak
readers of its Retire With discount allows me to see
BRITISH AIRWAYS
flooded in. We’ve rounded up 10 AARP members 55 and over
Earmark these now, savvy choice ones that anyone over 55 are eligible to receive $65
readers say. BY E L I Z A B E T H O’ B R I E N (or, in some cases, 50) should off economy travel and
D O U G R I D D E L L— A M T R A K
When you plan for retirement with Fidelity, you’ll have instant access to
all your retirement savings details and goals, including:
800.FIDELITY | Fidelity.com
IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regarding the likelihood of various investment
outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Your results may vary with each use and over time.
Investing involves risk, including the risk of loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2017 FMR LLC. All rights reserved. 812684.1.0
6IXMVI LOOKING FORWARD
F R O M T O P : C O U R T E S Y O F C A R R A B B A’ S I TA L I A N G R I L L ; K AT H Y T R A N — A L A M O D R A F T H O U S E
the general $80 annual-pass
rate, says Warren Gress, 67, 320=
of Parker, Colo., who has
visited Glacier National
Park, Yellowstone, Grand
Canyon, Bryce Canyon, and
Zion, among others. Plus,
Gress notes, the pass gets
you discounted site fees if
you’re staying in a federal
campground.
T-MOBILE
Customers 55 and up can
get two lines with unlimited
talk, text, and LTE data for
$35 per line with autopay.
This is the best cell
discount available right
83%6-',)60-*)
,)6)Ş7=3964)6732%040%=&33/&=/6-78)2&%,0)6
8,)%81374,)6)
',%2+)7
On each episode of the popular Netflix makeover
show, now in its second season, the “Fab Five”
torpedo into the life of a good-natured but delight- BE FRUGAL AND FUNCTIONAL
fully hapless Average Joe (or Jill) and begin to
unravel self-sabotaging ideas about how to eat, BOBBY BERK’S LOVE AFFAIR with afordable home design
dress, and live. By the end, a life is transformed, and started when he was about 18 years old, sparked by a
life-altering trip to Target.
everybody—everybody—is crying.
The retailer had teamed up with architect Michael
The Five’s uncompromising positivity, along with
Graves, who stocked Target’s housewares section with
the sheer joy they take in one another’s company, is
something extraordinary: conventional kitchen items that
intoxicating. Wherever they go, a frenzy of belly were as beautiful as they were practical.
laughs and bear hugs follows—it’s hard to avoid “It was teakettles, soup ladles, and spatulas that were
O N B O B B Y: R I N G J A C K E T O L I V E S P O R T C O AT, S U N S P E L ST R I P E D T- S H I R T, A P C D A R K R I N S E J E A N S , T O B O O T G R AY S L I P - O N S
getting sucked into the vortex. designed really cool,” Bobby recalls. “And I remember
Their job descriptions are simple enough—each walking into the aisles and for
is an expert in grooming, design, food, culture, or the first time in my life going,
fashion—but the philosophy they espouse is nothing TIP
‘Huh, the things in your life
that are functional can also
short of revolutionary. They don’t swoop into
;,%8Ş7
bring you joy.’ ”
someone’s life, hammer him or her with pep talks
On-screen, the 36-year-old
8,)
about interior design and eating healthy, and expect
is tasked with reviving spaces
it all to stick. Instead, they lay out a series of small
',)%4)78
that in the world of high design
steps, a sustainable chain of progress that contin- are rather unconventional (a
ues long after the cameras have stopped rolling.
The Queer Eye credo isn’t about flagrant spend-
;%=83 double-wide trailer, a college
6)*6)7,
student’s first apartment, a
ing either. Living your best life doesn’t mean tiny home with six tiny kids).
switching from olive to trule oil or using only
salon-grade hair products. It’s about the intan-
%6331# This isn’t unfamiliar territory.
Bobby was raised by working-
gibles: showing up for your family, creating lifelong class parents in Missouri, and
Š;LIRWSQISRI
friendships, feeling confident in your own skin, and [ERXWXSJVIWLIR interior design didn’t exactly
living comfortably within your means. YTXLIMVLSQIE top his own family’s list of
This, more than anything else, is Queer Eye’s FMXERHXLI]HSRŞX priorities.
[ERXXSWTIRHE At the beginning of his
secret sauce. The Fab Five’s guide to life is as
XSRSJQSRI] career, Bobby bounced
attainable to the home viewer as it is to the show’s
SRGSRWXVYGXMSR between retail and restaurant
own subjects—a ragtag group of Georgia locals who,
-EP[E]WXIPP jobs in the Midwest. In 2003 he
over the course of a week, become remarkably moved to New York City with
comfortable with five gay guys fussing with their XLIQXSWXEVX
SJJ[MXLTEMRX about $100 in his pocket, and
hair, rolling up their collars, and holding their freshly
%JVIWLGSEXGER just a few years later, he
manicured hands. It might call for some lifestyle
VIEPP]GLERKI launched Bobby Berk Home,
changes, but it’s feasible. On any budget. XLI[LSPIPSSO an online furniture brand.
Skeptical? We asked each of the guys to prove it. SJELSQIš Today, Bobby lives in Califor-
&SFF]WE]W
nia with his husband and runs an interior design firm. But average family budget). So when he refreshes a home,
those penny-pinching days in New York made a lasting Bobby weighs aesthetics and practicality with the same
impression. tape measure.
“Living there for years with small spaces, all [my] “I want it to feel very personal, but it also needs to
furniture needed to do double time,” he says. “It needed function,” he says.
to be seating, it needed to be storage, it needed to be this, Often, he pairs quality, mid-range pieces from CB2 and
it needed to be that. So when I think about design, I think West Elm with inexpensive staples. And he loves a good
about how things are going to work in a home and how Ikea hack: On the new season of Queer Eye, he made a row
people are going to interact with it daily.” of Billy bookcases “look like $10,000” with a little crown
On Queer Eye, Bobby is characteristically thrifty. His molding and some baseboards.
home transformations, done in just a few days, create “I’m all about the highs and lows,” he says. “I’m not a
living spaces that are modern but not stark. Snazzy decor designer that thinks you need to spend a lot of money. You
might look great in a Pottery Barn catalog, but that can get the look you want between thrift stores and stores
doesn’t mean it will work for the average family (or the like Ikea and Target.”
THE QUEER EYE GUIDE TO A RICHER LIFE
%RXSRM4SVS[WOM
*33(%2(;-2))<4)68
O N A N TO N I : J A M E S P E R S E N AV Y T E E F R O M B L O O M I N G D A L E ’ S , A P C J E A N S , H I S O W N A D I D A S S N E A K E R S
Antoni never set out to be a food expert, though. Born
in Montreal to Polish parents, he moved to New York
City in his twenties to pursue a career in acting. To pay
the bills, he took a bunch of food-service jobs (busboy,
sommelier, sushi instructor) but found the restaurant
world exhausting.
Cooking was a diferent story. For as long as
Antoni can remember, preparing a meal—and all the
little rituals that go with it—has been a reliable source
of comfort.
“I come from a pretty
TIP dysfunctional family, but
dinnertime was when we all
%2832-Ş7 shut up … the one time we
actually got along,” he says.
8,6)) If you want to step up your
',)%4 home cooking game, Antoni
/-8',)2 says you don’t need a bunch of
94+6%()7
fancy QVC gadgets to get
started. Just find some
cooking videos on YouTube,
1MGVSTPERI
or better yet on PBS, and
Š6IEPP]KSSHJSV jump right in.
4EVQIWERERH After all, the point isn’t to
PIQSR^IWXš learn how to chop an onion at
record speed or to school all
*PEXXST[SSHIR your friends on the benefits of
WTSSR
sous vide cooking.
people on Queer Eye don’t have the time or wherewithal Š8LIWILIPTWGVETI “It’s about the language,”
to make a restaurant-worthy meal every night. The XLIFSXXSQSJXLI he says. “For some people,
simple dishes Antoni vouches for are replicable, fast, TERIEWMIVXLERE it’s a way of communicating
and—to someone like season one’s Tom, who had never VSYRHIHWTSSRš with someone. For others,
seen the inside of an avocado before Antoni sliced one it’s about cooking for
open—transformative. ;LSPIFPEGOTITTIV themselves and learning
“With everybody, it’s really learning how to do that QMPP
that there’s nothing
one simple thing,” Antoni says. “If you have a medjool Š=SYŞPPRIZIVFIEFPI pathetic about that. It’s the
date, and you put in a bit of blue cheese and an almond XSKSFEGOXSXLI greatest form of self-love
and wrap it with bacon, you’re covering salty and sweet, TVIGVYWLIHWXYJJ out there.”
IZIVEKEMRš
AUGUST 2018 M O N E Y. C O M
M O N E Y. C O M AUGUST 2018
THE QUEER EYE GUIDE TO A RICHER LIFE
THE FIRST THING YOU NEED to know about Tan France is that
he is, without a doubt, the spiiest reality TV star to walk
God’s green earth. (Sorry, Honey Boo Boo.)
TIP TIP
I don’t know how many Instagram photos he’s added
since I wrote this sentence, but I’m positive there’s
pomade-perfect hair and a crisp, not-quite-tucked-in
13()62 ,3;83
shirt in every single one of them. ;%6(63&) (6)77
The second thing you need to know about Tan France )77)28-%07 *36%.3&
is that it takes him two minutes to get ready every
-28)6:-);
Š-J]SYŞVIWXVYKKPMRK
-2
morning. Two minutes!
O N TA N : A L L S A I N T S L E O PA R D P R I N T S H I R T F R O M B L O O M I N G D A L E ’ S , A C N E B L U E J E A N S , H I S O W N A D I D A S S N E A K E R S
O N K A R A M O : J O H N VA R VAT O S D E N I M S H I R T, D R I E S VA N N O T E N B O M B E R J A C K E T, B L U E F R A M E J E A N S , T O B O O T TA N C H E L S E A B O O T S
'90896))<4)68
A former cast member of MTV’s The Real World, he’s says. In college, when he couldn’t aford the $50 football
uniquely qualified for this job. Karamo brings an out- tickets his friends bought every weekend, he took
sider’s perspective to everything he does, informed by a concession jobs so he could still watch the games. Now
lifetime of volunteer and social services work and the he encourages others to toe the line between “fun” and
decade he’s spent as a single parent. “responsibility.” On Queer Eye, he’s a witness to the power
As a first-generation American, he says money didn’t of spending on experiences over things—paintball,
come easily for his immigrant family. Still, his parents drinks with pals, the perfect proposal.
managed to put multiple kids through college. “Look around,” he says. “There are other ways into
Karamo mastered the art of frugal living early on, he this party. You can have the fun but still save your penny.”
AUGUST 2018 M O N E Y. C O M
THE QUEER EYE GUIDE TO A RICHER LIFE
.SREXLER
Like the rest of the Fab Five, Jonathan comes from the
same tireless, “pull yourself up
:ER2IWW
O N J O N AT H A N : G R A M I C C I R O S E S W E AT S H I R T F R O M S H O P W I T T M O R E . C O M , M S G M D E N I M J A C K E T W I T H R A C I N G S T R I P E S , H I S O W N A L L S A I N T S J E A N S , H I S O W N S A I N T L A U R E N T B O O T S
2))(83
ship with a stylist—someone
willing to work with your
74)2( budget, style, and hair
83+)8% type—over spending a bunch
6SFSEHZMWSVW
call it a robo even though it’s not a substantively diferent
solution, says Michael Kitces, blogger and director of
wealth management at Pinnacle Advisory Group.
VIP]SRGSQTYXIVEPKSVMXLQW
where securities that are down will be sold to ofset
capital gains elsewhere in your portfolio. A number of
[MXLGSRWYQIVW
to consultants PriceMetrix).
Robo-advisors, by contrast, are betting on scale. So
there’s no need to have $500,000 saved. Investors can
Last year, total assets managed by robos hit $222 bil- start with as little as a dollar, and the average manage-
lion, which was more than double from the prior year. Yet ment fee is roughly a third of traditional human advisors,
despite this growth, robos still collectively control less just 0.36%, according to MONEY’s analysis. Some
than one-third of the assets of a single mutual fund— platforms like WiseBanyan and Schwab Intelligent
Vanguard Total Stock Market Index. That could change. Portfolios don’t even charge a fee at all; they simply pass
“When you say robo-advisor, people don’t necessarily along the underlying cost of the funds used.
understand,” says David Goldstone, a research analyst for The low price, proliferation of companies in the space,
the Robo Report, which tracks robo-advisor performance. and growing capabilities have helped push investors
“Often people think of accounts being traded frequently, toward these platforms. But for robos to become more
algorithms that are driving trading strategies—and that’s than a niche solution, they’ll have to appeal to a broader
not really the case.” For the most part, he says, robos audience. Right now, the audience is made up primarily of
ofer managed accounts that consist largely of low-cost self-directed investors who want to take the burden upon
index mutual and exchange-traded funds (ETFs). themselves to choose the “right” robo (i.e., the right
The perception of robos is likely to evolve now that a managed-account provider). Yet finding the right auto-
majority of the startups have faded from the scene, and mated platform can be diicult to determine.
traditional financial services providers such as Fidelity and To help narrow the field, MONEY looked at roughly
KEY FACTORS
Human-advice availability:
Licensed advisors are
available to answer simple
questions via chat or phone.
AUGUST 2018 M O N E Y. C O M
8,)&)7863&3%(:-7367
The more complex your financial needs, the more CAVEATS: If you’re looking
you’re likely to need—and want—human help. WHY IT WINS: Schwab to minimize your tax bills,
That’s where a “hybrid robo-advisor” can be seriously upped its game in you’ll need to have at least
beneficial. The best hybrid robos will also ofer the robo space when it $50,000 with Schwab in
both retirement and taxable accounts, complete introduced Intelligent order to qualify for tax-loss
with tax-eicient strategies and analysis of Advisory—a major step up harvesting services.
outside accounts like 401(k)s so investors can get from its original, fully In the past, Schwab’s
a comprehensive picture of their total wealth. automated Intelligent robo ofering has also been
Portfolios platform. criticized for holding more of
The new premium service its clients’ assets in cash, on
ofers access to investment average, than some of its
management and comprehen- peers. While that cash cushion
sive planning delivered by helped Schwab’s portfolios
certified financial planners hold up during the first-
(CFPs) who are available six quarter market rockiness,
days a week (customer higher cash stakes can create
service is available 24/7). a drag on an investor’s
And planner help is portfolio, Goldstone says.
available from the get-go—
KEY FACTORS
an initial planning call or video
chat generally lasts an hour Minimum to open account:
and guides investors through $25,000
the “onboarding” process.
Follow-up meetings can easily Average all-in cost: 0.43%
be scheduled through the
online booking system. Human-advice availability:
Schwab Intelligent Advisory Certified financial planners
does require a $25,000 are available for initial
investment to start. But the onboarding, and investors
management fee is only can schedule an unlimited
0.28% of assets a year. Once number of appointments via
you factor in the average costs phone or web chat.
SEE HOW ALL THE MAJOR ROBO-ADVISORS STACK UP ON THE TABLES THAT FOLLOW.
AUGUST 2018 M O N E Y. C O M
8,)&)7863&3%(:-7367
8,)63&3692(3;2
To find the right robo-advisor for you, there are a few basic things you need to know. For instance, how much
money do you have to bring to the table? How much human help is available to you if you need more than digital
assistance? What are the tools and services each robo-advisory ofers to address your specific needs? And
finally, how much does it cost, a question that everyone—regardless of what stage they’re at as investors—
needs to ask. MONEY has assembled the answers to those essential questions in the tables here.
ALLY INVEST $2,500 0.40% None Formerly TradeKing Advisors, Ally’s rebranded robo-
MANAGED platform ofers integration with the banking features
PORTFOLIOS found at Ally.com. This robo-advisor does not manage
its own proprietary funds, making its investment
recommendations more independent.
BETTERMENT $0 0.36% Team of licensed advisors available No minimum to start investing. Betterment ofers a wide
;-22)6
DIGITAL to answer simple questions via text range of investment and retirement tracking tools. You can
or by phone. also see how much your outside accounts are costing you
in fees and uninvested cash.
BETTERMENT $100,000 0.50% Unlimited text- or phone-based Betterment’s Premium platform allows for unlimited one-
PREMIUM access to a certified financial on-one access to a financial advisor as well as access to its
planner (CFP) to answer questions “flexible portfolios” tool to adjust the percentage of your
and engage in financial goal money invested in any particular ETF.
planning.
ELLEVEST DIGITAL $0 0.42% Financial counselors available via Like all Ellevest platforms, this ofers a unique algorithm
email or text for simple questions. that adjusts portfolios based on women’s income trends
and life cycles. The platforms also invest in companies
driving social and economic change by empowering
women.
ELLEVEST PREMIUM $50,000 0.67% Team of financial advisors available Ellevest Premium clients can access certified financial
to answer questions via phone, text, planners, as well as personalized career coaching to help
or email. with gender-pay-gap issues such as negotiating a raise
and compensation package.
ELLEVEST $1,000,000 1.17% Video-chat or phone-based access For high-net-worth investors, Ellevest ofers a bespoke
PRIVATE WEALTH to a dedicated certified financial service with a dedicated wealth manager and personalized
MANAGEMENT planner to answer questions and investment options that align with clients’ social values.
engage in financial planning goals.
E*TRADE CORE $5,000 0.37% Team of advisors available The individual investments in E*Trade’s portfolio are
PORTFOLIOS to answer simple questions chosen by the investment strategy team at E*Trade
via phone. Capital Management.
FIDELITY GO $10 0.35% None directly attached to Fidelity Investments are managed by the Fidelity Go team. In April,
Go, but Fidelity Go customers enjoy the underlying funds were changed to Fidelity Flex Funds,
the full advice oferings available to actively and passively managed portfolios with zero
all Fidelity clients through phone or expense ratios. The Flex Funds are available only to certain
chat or at investor centers. fee-based accounts ofered by Fidelity, like Fidelity Go.
FUTUREADVISOR $10,000 0.65% Team of advisors available to answer Basic robo-advisor, but the accounts are not held by
questions via phone or email. FutureAdvisor. Instead, they are held at Fidelity or TD
Ameritrade.
TABLES CONTINUE
MERRILL EDGE $5,000 0.55% Ask an advisor general questions by The investment plan is directed by strategists (at Merrill’s
GUIDED INVESTING phone, email, or in person. Clients Global Wealth and Investment Management Chief
with at least $20,000 get customized Investment Office) rather than by algorithm.
advice via a separate team of advisors.
MORGAN STANLEY $5,000 0.75% None Ofers clients the ability to devote a portion of their
ACCESS INVESTING portfolio to an investment theme such as sustainability or
gender diversity.
PERSONAL $100,000 0.92% In-person, video-chat or phone- Clients have access to customized portfolios that ofer
CAPITAL based access to a team of licensed exposure to individual stocks and socially responsible
financial advisors to answer strategies. Personal Capital also ofers a “smart
questions and engage in goal weighting” approach that emphasizes economic
planning. diversification and risk-adjusted returns.
REBALANCE IRA $100,000 0.65% Video-chat or phone-based access This robo specializes in retirement accounts, relying on
to a dedicated licensed financial low-cost exchange-traded funds that track major indexes.
advisor and qualified client service
representative to answer questions
and help with planning financial
goals.
SCHWAB $25,000 0.43% Video-chat or phone-based access Schwab’s premium platform ofers clients access to a
INTELLIGENT to a team of licensed financial financial advisor, as well as upgraded features such as the
;-22)6
ADVISORY advisors to answer questions and ability to sync up outside accounts to your financial plan.
help plan financial goals.
SCHWAB INTELLIGENT $5,000 0.15% None Schwab doesn’t charge a management fee, although the
PORTFOLIOS service does have higher allocations of cash.
SIGFIG $2,000 0.35% Video-chat or phone-based access This robo-advisory platform ofers to manage your first
to a team of licensed financial $10,000 for zero investment management fees (you
advisors to answer questions and still must pay the underlying fund fees). Management
help plan financial goals. expenses after that are 0.25% of assets per year.
TD AMERITRADE $5,000 0.37% A team of licensed counselors Funds are recommended by Morningstar. Clients can
ESSENTIAL is available to answer simple access quarterly snapshots and market commentaries,
PORTFOLIOS questions via chat or phone. while Amazon Alexa and Echo can provide on-demand
market information and educational resources.
TD AMERITRADE $25,000 1.10% In-person at any of 364 branches or Each client receives individual personalized performance
SELECTIVE phone access to a licensed financial videos on a quarterly basis. Facebook Messenger and
PORTFOLIOS counselor to answer questions and Twitter chatbots are also available. Tax-loss harvesting
help plan financial goals. available for clients in taxable accounts.
TIAA PERSONAL $5,000 0.67% A team of licensed advisors is TIAA is a pioneer in socially responsible investing and has
PORTFOLIO available to discuss a range of topics ofered SRI funds to customers since 1990.
related to retirement, savings, and
investing.
VANGUARD $50,000 0.38% Video-chat or phone-based access In addition to broad investment management, this robo
;-22)6
PERSONAL ADVISOR to a certified financial planner to can help with retirement drawdown strategies. Vanguard
SERVICES answer questions and help plan also ofers tools to help with spending advice and Social
financial goals. Security optimization.
WEALTHFRONT $500 0.33% None Aimed at investors in their thirties and forties, Wealthfront
focuses on delivering fully automated investment
management, financial planning, and banking-related
services.
American Lung Association’s LUNG FORCE, Breast Cancer Research Foundation, Canadian Cancer Society, Canadian Institutes of Health Research,
Cancer Stem Cell Consortium, Farrah Fawcett Foundation, Genome Canada, Laura Ziskin Family Trust, LUNGevity Foundation, National Ovarian Cancer Coalition,
Ontario Institute for Cancer Research, Ovarian Cancer Research Fund Alliance, Society for Immunotherapy of Cancer
STAND UP TO CANCER IS A DIVISION OF THE ENTERTAINMENT INDUSTRY FOUNDATION, A 501(C)(3) CHARITABLE ORGANIZATION. IMAGES ARE FROM STAND UP TO CANCER TELECASTS AND EVENTS.
THE AMERICAN ASSOCIATION FOR CANCER RESEARCH (AACR) IS STAND UP TO CANCER’S SCIENTIFIC PARTNER.
M O N E Y. C O M AUGUST 2018 PHOTOGRAPHS BY MARK PETERMAN
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WEPEV]SJE]IEV
AUGUST 2018 M O N E Y. C O M
FOR 12 MINUTES one night in October
2017, Mallory Heath could not speak.
The 31-year-old Arizona English
teacher was sufering from
migraine-induced aphasia. She
couldn’t write or talk as she usually
could; her words came out jumbled
and nonsensical. But amid the
terrifying episode, Heath chose not
to go to the emergency room. She
knew she couldn’t aford it.
“I realized,” Heath says, “how
often do I put my health on the line
because I just don’t have the funds
to be able to take care of myself?”
Almost a year later, Heath has
left the profession she calls her
identity. She used to live and
breathe teaching—spending hours
outside the classroom listening to
education podcasts, reading
pedagogy, attending conferences,
and serving on the board of the
Arizona English Teachers’ 1EPPSV],IEXL “I didn’t really have a choice,” Heath says of her
Association. PIJXLIVNSFEWER departure. “So I’m just finalizing the choice that has
)RKPMWLXIEGLIV
But making $42,000 a year MR%VM^SREŞW been made for me.”
before taxes and pension contribu- 'LERHPIVWGLSSP Heath is one of hundreds of teachers across the
tions, she couldn’t aford basic HMWXVMGX country leaving the profession as a result of low pay.
living expenses like rent—nor MONEY spoke with half a dozen of them. They detailed
could she replace her decade-old years-long salary freezes, second or third jobs taken to
pair of glasses. With a high- make ends meet, and classrooms filled to the brim with
deductible insurance plan, she had students amid teacher shortages and dwindling funding.
to choose carefully how she used As pay fell or grew stagnant, their costs for health
her health savings account for insurance rose. (See charts on following pages.)
medical expenses. Once those Meanwhile, a public employee pension crisis left
funds dried up, she had to pay for teachers concerned about attaining a financially stable
medical costs upfront—and having retirement—even as higher pension costs have dug into
any savings, she says, has been their paychecks.
almost out of the equation. Educators at sufering school districts in a number of
AUGUST 2018 M O N E Y. C O M
The rise of the tech industry PUBLIC SCHOOL TEACHER ... AND TEACHERS NOW PAY
has also made it more diicult for SALARIES HAVE BEEN A LARGER SHARE OF
DECLINING … HEALTH CARE PREMIUMS
school districts to acquire and
retain promising science, technol- $65,000 38%
ogy, engineering, and mathematics
AVERAGE TEACHER AVERAGE SHARE OF
(STEM) teachers. Sean Dufy, a PAY, ADJUSTED FOR INSURANCE PREMIUMS
former Colorado teacher whose INFLATION PAID BY TEACHERS
64,000
parents were both educators, left 36 36%
teaching several years ago when he
found more lucrative opportunities
63,000
in Austin’s tech scene. He says he
now earns significantly more than 34
his annual $43,000 teacher salary,
though he declines to disclose 62,000
specifics. Dufy says he misses his
students and his classroom, but he $60,934 32
was glad to leave the other aspects 61,000
of teaching and working in a school
district behind.
“I had a bachelor’s and master’s,
60,000 30
and all my peers in other sectors
were making higher salaries with 2003 2016 2008 2017
increases and bonuses,” Dufy says. NOTES: MEASURED AT BEGINNING OF THE SCHOOL NOTES: DATA IS FOR PRIMARY, SECONDARY, AND
YEAR AND ADJUSTED FOR INFLATION. ESTIMATES SPECIAL EDUCATION SCHOOLTEACHERS, AND
Now he works at Capital Factory, USED FOR 2006 AND 2016. ASSUMES FAMILY COVERAGE.
an Austin-based company that SOURCE: NATIONAL EDUCATION ASSOCIATION’S
ANNUAL RANKINGS & ESTIMATES REPORTS
SOURCE: BLS, NATIONAL COMPENSATION
SURVEYS, 2008–2009
helps entrepreneurs start their
businesses. His in-box, he says, is
filled with teachers seeking advice
on how to escape. their income. Working a second or third job is common-
A number of organizations place, they say. To find more lucrative teaching salaries,
around the country are trying to some have moved to diferent states with higher
find ways to lure talented teachers pay—and others to countries halfway around the world.
back to the classroom. But low pay
and limited resources make that FEW HAVE DITCHED THE PROFESSION to enter
work diicult. state politics and gain a seat at the table. As
“You can’t have teachers be the law- and policymakers, they can use their
engines of equality and social experience to push for higher budgets for
mobility if they themselves cannot public education. Kathy Hofman, a speech therapist in
provide for their—and their the Tucson schools, wants to do just that. She is now
family’s—economic security,” says running for superintendent of public instruction, which
Talia Milgrom-Elcott, the cofound- oversees Arizona’s public school system and depart-
er and executive director of ment of education. The confirmation hearing of Educa-
100Kin10—a group whose name tion Secretary Betsy DeVos, a charter-school advocate
and purpose stem from Obama’s who has been criticized for her lack of attention to
2011 call to get 100,000 STEM struggling public schools, inspired Hofman to run.
teachers in the classroom by 2021. “I strongly believe we need more teachers running
Other teachers who spoke to for oice,” says Hofman, whose platform focuses on
MONEY detail the extreme teacher pay and programs for bilingual students, among
measures they have taken to boost other issues, “not just politicians.”
Shawn Sheehan, the 2016 Oklahoma Teacher of the educators say there’s still a long
Year, ran for state senate to help tackle similar issues. way to go.
After a failed bid, however, he and his wife, also a teacher, Heath, the former English
moved to Texas—to a school district with a higher teacher from Arizona, is hopeful.
average salary. Now the couple earn $38,000 more a year She recently started a job as a
than they did in Oklahoma. Even with Texas’s higher cost literacy curriculum specialist at
of living, Sheehan says, they come out ahead. multinational corporation Pearson
“We weren’t expecting to be rich,” he explains. “We Education—a gig that will keep her
were expecting to make ends meet and pay the bills. close to the profession she loves.
We’re highly trained and qualified, and we do expect to And if this year’s big protests
be paid at least a livable wage—and that’s still not the and strikes manage to create
case for Oklahoma educators.” long-term, substantial change,
Even so, there’s a chance for improvement in these Heath says she may even return to
sufering states—thanks in part to this year’s teacher the classroom. She could get back
uprisings. A nine-day teacher walkout in Oklahoma in to teaching The Great Gatsby (her
April led to millions more dollars in education funding favorite book). She could return to
in the state. And in Arizona, Gov. Doug Ducey signed a her students—and to the career
plan in early May that would raise teacher pay by 20% she most identifies with.
over the next three years—with a 10% pay bump this “I’m trying to hold tight to the
year. That will add more than $1 billion to the state idea that everything happens for a
budget in education spending—even as Arizona reason,” she says.
6)'311)2()(
*92(7
7QEPP7XSGOW
MONTH YEAR YEARS 1
FUND (TICKER)
Vanguard Inflation-Protected (VIPSX) 0.0% 0.1% 1.7% 0.20 662-7447
Vanguard Short-Term Infl.-Prot. (VTIPX) 0.1 0.6 0.9 0.15 662-7447
Vanguard Total Intl. Bond Index (VTIBX) 1.6 3.2 0.13 662-7447
7MKREP+VS[XL
–0.3
CUSTOM FUNDS
Large-Cap
Dodge & Cox Stock (DODGX) 1.8 14.1 11.1 0.52 621-3979
Schwab Fundamental U.S. Large (SFLNX) 1.9 13.9 10.3 0.25 435-4000
Sound Shore (SSHFX) 1.7 7.9 7.4 0.91 551-1980
TYPICALLY, WHEN THE ECONOMY begins to accelerate and Vanguard Value Index(VIVAX) 1.1 11.8 10.4 0.17 662-7447
investor confidence climbs, riskier but faster-growing Primecap Odyssey Growth (POGRX) 3.3 30.2 17.7 0.67 729-2307
T. Rowe Price Blue Chip Growth (TRBCX) 3.1 31.5 17.9 0.70 638-5660
small-company stocks tend to outpace the broad Midcap
market. True to form, mutual funds on our recom- Vanguard Mid-Cap Value Index (VMVIX) 1.4 9.7 9.0 0.19 662-7447
mended list that specialize in small-capitalization Vanguard Mid-Cap Growth (VMGIX) 3.2 16.8 9.4 0.19 662-7447
T. Rowe Price Div. Mid Cap Gro. (PRDMX) 3.0 19.4 11.4 0.84 638-5660
stocks were among the best performers in the four Small-Cap
weeks ended June 13. This came just as economists Vanguard Small-Cap Value (VISVX) 3.3 13.1 10.1 0.19 662-7447
were raising their forecasts for U.S. gross domestic Schwab Fundamental U.S. Small (SFSNX) 4.0 16.6 10.8 0.25 435-4000
Vanguard Small-Cap Growth (VISGX) 4.3 23.4 10.9 0.19 662-7447
product growth in the second quarter to more than T. Rowe Price QM U.S. Small-Cap Gro.(PRDSXX) 3.4 20.1 11.6 0.79 638-5660
4%, double the rate of growth at the start of the year. Specialty
Among the mutual funds in the MONEY 50, the T. Rowe Price Dividend Growth (PRDGX) 1.1 11.7 10.9 0.64 638-5660
Vanguard Intl. Div.Appreciation (VIAIX) 0.6 9.9 N.A. 0.35 662-7447
Schwab Small Cap Index fund gained 4.4% in the Cohen & Steers Realty Shares (CSRSX) 0.6 –0.5 6.0 0.97 437-9912
month, compared with the 1.9% gain for the larger Vanguard Global. ex-U.S. Real Estate(VGXRX) –1.0 10.0 6.3 0.34 662-7447
stocks in the Schwab S&P 500 Index fund. Fidelity Select Natural Resources (FNARX) –1.1 17.1 0.7 0.83 544-8544
Foreign
Oakmark International (OAKIX) –3.5 9.3 6.7 0.95 625-6275
Vanguard International Growth (VWIGX) 1.6 23.8 12.6 0.45 662-7447
,3;8397)3966)'311)2()(0-78
T. Rowe Price Emerging Markets (PRMSX) –2.5 16.7 10.5 1.23 638-5660
Bond
Building-block funds: For broad exposure to core asset classes Dodge & Cox Income (DODIX) –0.2 0.1 2.5 0.43 621-3979
Custom funds: Specialized investments that can tilt your strategy Fidelity Total Bond (FTBFX) 0.0 –0.5 2.4 0.45 544-6666
One-decision funds: If you want stocks and bonds in one portfolio Vanguard Short-Term Inv. Grade (VFSTX) 0.0 –0.2 1.5 0.20 662-7447
Fidelity Corporate Bond (FCBFX) –0.3 –0.5 3.0 0.45 544-6666
Loomis Sayles Bond (LSBRX) –0.1 1.0 2.8 0.91 633-3330
Fidelity High Income (SPHIX) 0.8 4.2 5.5 0.72 544-8544
TOTAL RETURN EXPENSES PHONE Vanguard Intm.-Term Tax-Ex. (VWITX) 0.3 0.4 2.4 0.19 662-7447
(AS % OF NUMBER
ONE ONE THREE ASSETS) (800) Vanguard Limited-Term Tax-Ex. (VMLTX) 0.4 0.3 1.2 0.19 662-7447
FUND (TICKER) MONTH YEAR YEARS 1
Templeton Global Bond (TPINX)2 –1.5 –2.0 1.0 0.96 632-2301
BUILDING-BLOCK FUNDS Fidelity New Markets Income (FNMIX) –1.8 –3.0 5.4 0.82 544-6666
Large-Cap
ONE-DECISION FUNDS
Schwab S&P 500 Index (SWPPX) 1.9% 15.9% 12.1% 0.03 435-4000
Balanced
Schwab Total Stock Market Index (SWTSX) 2.3 16.3 11.8 0.03 435-4000
Fidelity Balanced (FBALX) 1.9 11.3 8.1 0.55 544-6666
Midcap/Small-Cap
Fidelity Asset Manager 60% (FSANX) 0.8 9.4 6.8 0.73 544-6666
Vanguard Mid-Cap Index (VIMSX) 2.3 13.1 9.2 0.17 662-7447
Vanguard Wellington (VWELX) 0.3 7.8 7.9 0.25 662-7447
Schwab Small Cap Index (SWSSX) 4.4 19.1 11.4 0.05 435-4000
Target Date
Foreign
T. Rowe Price Retirement series (STOCK/BOND ALLOCATION)
Fidelity International Index (FSIIX) –1.7 9.1 5.1 0.16 544-8544
Ex: 2005 Fund (36%/64%) (TRRFX) 0.1 4.6 4.9 0.58 638-5660
Vanguard Total Intl. Stock Index (VGTSX) –1.6 10.7 5.9 0.17 662-7447
Ex: 2020 Fund (58%/42%) (TRRBX) 0.4 8.0 6.7 0.63 638-5660
Vanguard FTSEA/W ex-U.S. Small (VFSVX) 0.1 14.7 8.2 0.25 662-7447
Vanguard Target Retirement series
Vanguard Emerging Markets (VEIEX) –2.7 12.3 5.1 0.32 662-7447
Ex: 2025 Fund (62%/38%) (VTTVX) 0.5 8.7 6.8 0.14 662-7447
Specialty
Ex: 2035 Fund (77%/23%) (VTTHX) 0.6 10.9 7.9 0.14 662-7447
Vanguard REIT Index (VGSIX) 1.0 –2.5 5.1 0.26 662-7447
Bond
Vanguard Total Bond Market (VBMFX) 0.1 –1.3 1.4 0.15 662-7447 NOTES: As of June 13, 2018. N.A.: Not available. Load funds are included for those who prefer
to use a broker. 1Annualized. 24.25% sales load. SOURCES: Lipper, New York, 877-955-4773;
Vanguard Short-Term Bond (VBISX) 0.2 –0.7 0.7 0.15 662-7447 the fund companies
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Markets ETF (VWO)
Specialty
Vanguard REIT ETF (VNQ) 1.0 –2.3 5.3 0.12 662-7447
Bond
Vanguard Total Bond ETF (BND) 0.1 –1.2 1.5 0.05 662-7447
Vanguard Short-Term Bond ETF (BSV) 0.2 –0.6 0.8 0.07 662-7447
FEAR OF A FULL-BLOWN TRADE WAR, sparked by a new
Schwab U.S.TIPS ETF (SCHP) 0.1 0.5 1.8 0.05 435-4000
round of tarifs imposed by Beijing and Washington, Vanguard Short-Term Infl.-Prot. ETF(VTIP) 0.1 0.7 1.0 0.06 662-7447
led to a sellof in shares of foreign stocks in the four Vanguard Total Intl. Bond ETF (BNDX) –0.2 1.7 3.2 0.11 662-7447
weeks ended June 13. Among the big losers were CUSTOM ETFs
Chinese equities, and that hit the broader emerging Large-Cap
Invesco FTSE RAFI U.S. 1000 ETF (PRF) 1.6 12.3 9.8 0.39 983-0903
markets. On our recommended list of ETFs, Vanguard Vanguard Value ETF (VTV) 1.1 12.0 10.5 0.05 662-7447
FTSE Emerging Markets lost 2.7% in the month. WisdomTree U.S. LargeCap Dividend(DLN) 1.2 10.3 10.3 0.28 909-94732
iShares Edge MSCI Min.Vol. USA ETF(USMV) 1.2 9.9 11.6 0.15 474-2737
Invesco S&P 500 High Qual. (SPHQ) 2.8 12.3 12.1 0.29 983-0903
7
46%8-37 Vanguard Growth ETF (VUG) 3.0 20.8 13.6 0.05 662-7447
Midcap
P/E DIVIDEND YIELD Vanguard Mid-Cap Value ETF (VOE) 1.4 9.8 9.1 0.07 662-7447
WisdomTree U.S. MidCap Dividend (DON) 3.1 11.9 11.5 0.38 909-94732
24.0 2.1% Vanguard Mid-Cap Growth ETF (VOT) 3.2 17.0 9.5 0.07 662-7447
Small-Cap
Vanguard Small-Cap Value ETF (VBR) 3.3 13.2 10.3 0.07 662-7447
WisdomTree U.S. SmallCap Dividend (DES) 4.4 12.0 11.1 0.38 909-94732
23.0 2.0
Invesco FTSE RAFI U.S. 1500 S-M(PRFZ) 4.5 19.4 11.5 0.39 983-0903
Vanguard Small-Cap Growth ETF (VBK) 4.3 23.6 11.0 0.07 662-7447
ONE-
22.0 YEAR 1.90 ONE- Specialty
RANGE
1.9 YEAR SPDR S&P Dividend ETF (SDY) 1.6 8.3 11.5 0.35 787-22572
RANGE
CURRENT CURRENT Vanguard Intl. Div.Appreciation (VIGI) 0.6 10.0 N.A. 0.25 662-7447
iShares Cohen & Steers REIT ETF (ICF) –0.3 –2.9 4.9 0.34 474-2737
21.0 1.8 Vanguard Global ex-U.S. Real Estate (VNQI) –1.0 10.2 6.5 0.14 662-7447
21.0
iShares N.Amer. Nat. Res. ETF (IGE) –0.6 15.3 1.7 0.48 474-2737
Foreign
20.0 1.7 Invesco FTSE RAFI Dev. Mkts. ex-U.S.(PXF) –2.6 9.7 5.3 0.45 983-0903
iShares Edge MSCI Min.Vol. EAFE (EFAV) –0.4 7.5 6.3 0.20 474-2737
SPDR S&P Emerg. Mkts. Small Cap ETF(EWXX) –0.5 11.9 6.1 0.65 787-22572
,3;8397)3966)'311)2()(0-78 Bond
Fidelity Total Bond ETF (FBND) –0.1 –0.7 2.0 0.36 343-3548
Building-block ETFs: For broad exposure to core asset classes Pimco Active Bond ETF (BOND) 0.0 –0.3 2.0 0.61 400-43832
Custom ETFs: Specialized investments that can tilt your strategy Pimco Enhanced Short
One-decision ETFs: If you want stocks and bonds in one portfolio Maturity Active ETF (MINT) 0.2 1.7 1.5 0.35 400-43832
iShares iBoxx $ Inv. Grade Corp. ETF(LQD) –0.3 –1.6 2.9 0.15 474-2737
Vanguard Short-Term Corp. ETF (VCSH) 0.2 –0.1 1.6 0.07 662-7447
iShares iBoxx $ HighYield Corp. ETF(HYG) 0.8 2.2 4.1 0.49 474-2737
TOTAL RETURN EXPENSES PHONE Vanguard Tax-Exempt ETF (VTEB) 0.2 0.8 N.A. 0.09 662-7447
(AS % OF NUMBER
ONE ONE THREE ASSETS) (800) SPDR Nuveen Bloomberg
FUND (TICKER) MONTH YEAR YEARS 1 Barclays S/T Muni (SHM) 0.5 –0.5 0.8 0.20 787-22572
BUILDING-BLOCK ETFs Invesco Intl. Corporate (PICB) –1.7 3.4 1.5 0.50 983-0903
Large-Cap SPDR Bloomberg Barclays
Vanguard 500 ETF (VOO) 2.0% 15.9% 12.1% 0.04 662-7447 Emerging Markets Bond ETF (EBND) –3.6 –1.6 1.8 0.40 787-22572
Schwab U.S. Broad Market ETF (SCHB) 2.3 16.3 11.8 0.03 435-4000 ONE-DECISION ETFs
Midcap/Small-Cap Balanced
iShares Core S&P Mid-Cap ETF (IJH) 2.9 14.3 10.9 0.07 474-2737 iShares Core Conserv.Alloc. ETF (AOK) 0.0 3.3 4.0 0.25 474-2737
iShares Core S&P Small-Cap ETF (IJR) 5.1 21.3 14.1 0.07 474-2737 iShares Core Moderate Alloc. ETF (AOM) 0.1 4.6 4.8 0.25 474-2737
Foreign iShares Core Growth Alloc. ETF (AOR) 0.1 7.5 6.3 0.25 474-2737
iShares Core MSCI EAFE ETF (IEFA) –1.4 10.6 6.1 0.08 474-2737 iShares Core Aggressive Alloc. ETF (AOA) 0.2 10.3 7.7 0.25 474-2737
Vanguard Total Intl. Stock ETF (VXUS) –1.6 10.7 6.0 0.11 662-7447 SPDR SSGA Global Alloc. ETF (GAL) 0.1 10.1 5.8 0.35 787-22572
NOTES: As of June 13, 2018. N.A.: Not available. 1 Annualized. 2Phone numbers are 866.
M O N E Y. C O M AUGUST 2018 SOURCES: Lipper, New York, 877-955-4773; the fund companies
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BY M I K E AY E R S
disorder, and I talk about it your favorite purchase in away. I bought a pair of black They’d just say, “Okay, you just
all the time. recent memory? sequin culottes. Did I say I’m lost me.” Then you think, What
I got it so my family would 61? I bought them somewhere did those culottes cost me?
In the final essay of your have a place at the beach. We in Tokyo. But I already found Twenty seconds onstage?
latest book, Calypso, you all get together there. I have somebody to give them to who When I no longer can go on
discuss your father’s fru- brothers and sisters in North can’t possibly afford them and tour, then all this will shut
gality and how it’s a source Carolina; they can just go would actually wear them all down. As long as I do this,
of tension. At the same there on their own. But the the time. When I do a live there’s no stopping me.
1
National savings average rate courtesy of the FDIC’s Weekly National Rates and Rate Caps, as of 04/09/2018; average rate used is for deposits under $100,000.