No. of Recommendations: 2
RK,

ARRGH. Me and my big mouth and jumping to conclusions.

I went back and reread your original post more carefully. The question you should be asking isn’t whether you could beat the pros, but which pros could beat which pros?

Let me explain. If the benchmark for the advisors you’re considering is the Barclay’s US 5-10 Yr Gov’t/Crdit Index, then why not just buy a fund, such as VBIIX, that tracks that index? Since the inception date of fund, 03/01/94, VBIIX has returned 6.36% (expenses included). Since 03/01/94, the underlying index has returned 6.50%. Your advisors will deduct 50 bps. Therefore, if they do no better than track the index over an equivalent period going forward, VBIIX should beat them by 36 bps/year.

https://advisors.vanguard.com/VGApp/iip/site/advisor/investm...

With $300k to work with as merely the fixed income portion of your portfolio, you obviously are dealing with a lot of money, enough money that any fund company would give you personalized service. Simply find a fund company you want to do business with and turn the money management problem over to them. If you want to learn the bond game for the challenge, then set aside $50k to play with. Likely, you’ll have fun, as well as do quite well. Bond investing isn’t hard to do. But managing a portfolio takes time, and if you’re old enough to be dealing with RMD’s, then time is more precious to you than money. Farm the money out to someone you can trust and get on with your life.

If you want names of firms you should consider, then focus on “value shops” like Oakmark, Third Avenue, Tweedy Brown, Dodge and Cox, Long Leaf Partners, etc.

Again, best wishes, Charlie (who manages his own money because he was too small when he started for anyone to be willing to fuss with.)
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