This selection indicates that you desire a strategy and
recommendations for a long-term, income-oriented return objectives. For most
people, retirement means an essential shift in portfolio strategy and
allocation -- an important and relevant article is "Portfolio
Changes in Retirement".
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., large value, mid blend, small growth, 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.
Basic Allocation Mix - 30% stock funds/60% bond funds/10% Cash*
* -- for
aggressive risk tolerances, large blend can replace large growth to slightly
decrease the risk tolerance.
** -- for moderate risk tolerances, large blend can replace large value to
slightly increase the risk tolerance.
Portfolio Size Aggressive * Moderate ** Conservative
$10,000
large growth -
30%
large value -
30%
large value (equity income) - 30%
- $25,000 multi-sector bond - 60% multi-sector bond -
60%
multi-sector bond - 60%
money market
-10%
money market
-10%
money market -10%
$25,000
large growth - 20%
large value - 20%
large value (equity income) - 25%
- $50,000
foreign (lb) - 10%
mid blend - 10%
mid value - 5%
multi-sector bond - 60% multi-sector bond
- 60%
multi-sector bond - 60%
money market
-10%
money market
-10%
money market
-10%
$50,000
large growth - 20%
large value - 20%
large value (equity income) - 25%
- $100,000 foreign (lb) - 10%
mid blend - 10%
mid value - 5%
multi-sector bond - 45% multi-sector bond
- 50%
multi-sector bond - 50%
high-yield bond -
15%
high-yield bond -
10%
govt mortgage bond - 10%
money market
-10%
money market
-10%
money market -10%
$100,000 large growth - 15%
large value - 15%
large value (equity income) - 20%
- $150,000 foreign
(lb) - 10%
mid blend - 10%
mid value - 5%
small blend - 5%
small value - 5%
small value - 5%
multi-sector bond - 40% multi-sector bond
- 40%
multi-sector bond - 40%
high-yield bond -
15%
high-yield bond -
10%
govt mortgage bond - 10%
emerging market bond - 5% govt mortgage bond -
10% short-term corp
bond - 10%
money market
-10%
money market
-10%
money market -10%
$150,000 + large growth -
10%
large value - 10%
large value (equity income) - 15%
foreign (lb) - 5%
mid blend - 5%
mid value - 5%
small blend - 5%
small value - 5%
small value - 5%
large value - 5%
foreign (lv) -
5%
global (lb) - 5%
mid value -
5%
reit -
5%
multi-sector bond - 30%
multi-sector bond - 40%
multi-sector bond
- 40%
govt mortgage - 10%
high-yield bond -
15%
high-yield bond -
10%
intermediate-term corp bond - 10%
emerging market bond - 5% govt mortgage bond -
10% short-term corp
bond - 10%
money market
-10%
money market
-10%
money market -10%
Depending upon risk tolerance, a short-term government bond fund can
substitute for a portion of a money market fund.
Recommended Funds
large growth - T. Rowe Price
Growth Stock (prgfx); T. Rowe Price Spectrum Growth (prsgx);
Vanguard Morgan Growth (vmrgx)
large blend - T. Rowe Price Dividend Growth (prdgx)
large value - Dodge & Cox Stock (dodgx); T. Rowe
Price Equity Income (prfdx);
Vanguard Equity Income (veipx); Vanguard
Windsor II (vwnfx)
mid growth - Meridian Growth (merdx); T. Rowe Price Mid-Cap Growth (rpmgx)
mid blend - Meridian Value (mvalx); Royce Premier (ryprx)
mid value - T. Rowe Price Mid-Cap Value (trmcx)
small growth - Royce Value Plus Service (ryvpx)
small blend - Royce Low-Priced Stock (rylpx); Royce Micro Cap (ryotx); Royce Pennsylvania Mutual (pennx)
small value - Delafield (defix); Royce Total Return (rytrx)
sector reit - T. Rowe Price Real Estate (trrex)
sector health - T. Rowe Price Health Sciences (prhsx)
foreign (large value) - Dodge & Cox International Stock (dodfx); T. Rowe Price International Growth & Income (trigx)
foreign (lb) - Vanguard International Value (vtrix)
foreign (small/mid growth) - T. Rowe Price International Discovery (pridx)
foreign (small/mid value) - Oakmark International Small Cap (oakex)
pacific/asia ex-japan - Matthews Asian Growth & Income (macsx)
diversified emerging markets - T. Rowe Price Emerging Markets Stock (prmsx)
global (lb) - Oakmark Global I (oakgx); Vanguard Global Equity (vhgex)
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); Loomis Sayles Bond (lsbrx); T. Rowe Price Spectrum Income (rpsix)
emerging market bond - T. Rowe Price Emerging Market Bond (premx)
high-yield bond - T. Rowe price High-Yield (prhtx); Vanguard High-Yield Corporate (vwehx)
world bond - Loomis Sayles Global (lsglx)
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)
800 Telephone Numbers
Delafield: 682-4683 Dodge & Cox: 621-3979 Loomis Sayles: 633-3330 Meridian: 446-6662
Oakmark: 625-6275 Royce: 221-4268 T. Rowe Price: 638-5660 Vanguard: 662-7447
