SENSIBLE INVESTMENT STRATEGIES  


Intermediate and Short-Term


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 - Vanguard Equity Income (veipx)

balanced (moderate allocation) - 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); Loomis Sayles Bond (lsbrx);
                                 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/non-agency bond - DoubleLine Total Return N (dltnx); 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)

Website Links and  800 Telephone Numbers

  Dodge & Cox: 621-3979   

DoubleLine: 877-354-6311    Oakmark: 625-6275   

T. Rowe Price: 638-5660    Vanguard: 662-7447

Other Strategies - select from the following:


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