These selections indicates that you desire a strategy and recommendations for (1) an intermediate-term, balanced-oriented return objective, (2) an intermediate-term, income-oriented return objective or (3) a short-term, income-oriented return objective. Short-term strategies have a time horizon of 1-3 years; intermediate-term strategies are appropriate for 3-5 year time horizons.The strategies are listed in ascending portfolio size with conservative, moderate and aggressive risk tolerances. Fund categories are designated by Morningstar style definitions (e.g., balanced, multi-sector bond, short-term corporate, etc.).
Recommended 100% no-load mutual funds are listed, including ticker symbols, at the bottom of the page. Morningstar is an excellent research site to learn more about the funds; simply type the fund symbol in the box on their home page and hit enter on your keyboard.
Intermediate Term - balanced-oriented
Portfolio Size Aggressive Moderate Conservative
$10,000 large value (equity income) - 50% balanced (moderate) - 70% balanced (conservative) - 70%
multi-sector bond - 50% multi-sector bond - 30% multi-sector bond - 30%$10,000 + large value (equity income) - 50% balanced (moderate) - 70% balanced (conservative) - 70%
multi-sector bond - 40% multi-sector bond - 20% multi-sector bond - 20%
high-yield bond - 10% govt mortgage bond - 10% short-term corp bond - 10%
Intermediate Term - income-oriented
$10,000 multi-sector bond - 80% multi-sector bond - 75% multi-sector bond - 60%
high-yield bond - 20% govt mortgage bond - 25% short-term corp bond - 40%
$10,000 + multi-sector bond - 75% multi-sector bond - 80% multi-sector bond - 80%
high-yield bond - 15% high-yield bond - 10% govt mortgage - 10%
emerging market bond -10% govt mortgage bond - 10% short-term corp bond - 10%Short Term - income-oriented
$10,000 short-term corp bond - 100% short-term corp bond - 100% short-term govt bond - 100%
$10,000 + short-term corp bond - 80% short-term corp bond - 70% short-term govt bond - 70%
short-term govt bond - 20% short-term govt bond - 30% short-term corp bond - 30%
Recommended Funds
large value - T. Rowe Price Equity Income (prfdx); Vanguard Equity Income (veipx)
balanced (moderate allocation) - Dodge & Cox Balanced (dodbx); Oakmark Equity & Income (oakbx);
T. Rowe Price Capital Appreciation (prwcx); Vanguard Wellington (vwelx)balanced (conservative allocation) - Vanguard Wellesley Income (vwinx)
multi-sector bond - Dodge & Cox Income (dodix); T. Rowe Price Spectrum Income (rpsix);
high-yield bond - T. Rowe Price High-Yield (prhtx); Vanguard High-Yield Corporate (vwehx)
emerging market bond - T. Rowe Price Emerging Markets Bond (premx)
government mortgage bond - Vanguard GNMA (vfiix)
intermediate-term corporate bond - Vanguard Intermediate-Term Investment-Grade (vfitx)
short-term corporate bond - Vanguard Short-Term Investment-Grade (vfstx)
short-term government bond - Vanguard Short-Term Federal (vsgbx)
money market - T. Rowe Price Summit Cash Reserves (tscxx); Vanguard Prime Money Market (vmmxx)
