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I am retiring in 4 years. What is to outlook for the sequioa fund. Should I hold or move to another fund?

Jul 27, 2014 by peter from Lithia, FL in  |  Flag
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1 vote

Here are a couple of links to reviews of the Sequoia Fund:

http://money.usnews.com/funds/mutual-funds/large-growth/sequoia-fund/sequx

http://quotes.morningstar.com/fund/SEQUX/f?t=SEQUX

Overall a great fund. If you're retiring in four years you should think about your investment allocations now. You don't need another Great Correction taking a big chunk of your savings right before you'll need them.

Comment   |  Flag   |  Jul 27, 2014 from Canton, GA

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Hi Peter! As you get closer to retirement, I'm sure you are beginning to think more about your investments and which ones are right for you. Without knowing your overall financial situation, it is difficult to give you any answer and impossible to give you a correct answer. I recommend you find a fee-only planner in your area and have this discussion with him/her to determine the best portfolio for you given your situation and risk comfort level.

Comment   |  Flag   |  Jul 29, 2014 from River Hills, SC

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Peter,

The decision to hold or sell an investment is important, but it isn't the first question you need to answer. First, consider what your retirement income will look like.

  • Will you be collecting a pension or social security?
  • Will a spouse be collecting a pension or social security ?
  • How much additional income will you need beyond these sources?

Once you've determined how much income you need your investments to generate, you can better assess whether Sequioa is a good fit to help achieve your retirement income goal.

As a fee-only advisor, we work with clients every day to determine what they need, and then identify the investments that help lead us toward that goal. If that's what you're looking for, give us a call or find a local advisor to work with.

Best wishes as you approach your retirement!

Comment   |  Flag   |  Aug 05, 2014 from Midland, MI

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Peter, Without knowing more about your retirement plans I don’t think anyone can give you an answer. If your question is because this fund has underperformed this year, you should look into the reason why. One of the reasons is that because it has a very high cash position. It’s a very concentrated fund with relatively few positions (for a mutual fund) and depends on superior stock selection by its management.
If it’s the only fund you own, or if it represents the bulk of your investment portfolio I would recommend you begin to diversify. Even the best portfolio managers can make bad decisions and cause severe losses after years, even decades of superior performance. SEQUX has a great history and deserves our respect. But the old “putting all your eggs in one basket” warning is well worth heeding.

Comment   |  Flag   |  Aug 05, 2014 from Suffolk, VA

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18% in Valaent Pharmaceuticals and a 1% expense ratio is enough for me to pass. But as the others said you should be more concerned about your allocation as opposed to this one fund. What is your plan?!

Comment   |  Flag   |  Aug 05, 2014 from Minneapolis, MN

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Richard P Taylor Level 17

I would agree with the other posts on this. Don't worry too much about the particular "fund" or trying to time in or out of it. Get your allocation right. Make sure the fees are acceptable and leave it alone.

Comment   |  Flag   |  Aug 06, 2015

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Hi Peter,

Unfortunately my crystal ball is in the shop so the best I can come up with is "uncertain." The fund has done well in the past, however, with you getting close to retiring, you should consider making your portfolio more conservative.

Comment   |  Flag   |  Jul 28, 2014 from Las Vegas, NV

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