SENSIBLE INVESTMENT STRATEGIES  


In Retirement


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%                        equity income (lv) - 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%                        equity income (lv) - 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%                        equity income (lv) - 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%                       equity income (lv) - 20%
- $150,000          foreign (lb) - 10%                     mid blend - 10%                        mid value - 5%
                           small blend - 5%                       small blend - 5%                         small blend - 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%                        equity income (lv) - 15%
                           foreign (lb) - 5%                       mid blend - 5%                            mid value - 5%
                           small blend - 5%                       small blend - 5%                          small blend - 5%
                           large value - 5%                        foreign (lv) - 5%                          world stock (lb) - 5%
                           mid value - 5%                          sector - 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 Blue Chip Growth (trbcx)T. Rowe Price Growth Stock prgfx);
                         T. Rowe Price New America Growth (prwax)

large blend - T. Rowe Price Dividend Growth (prdgx); Vanguard Dividend Growth (vdigx)

large value - Dodge & Cox Stock (dodgx); Vanguard Equity Income (veipx);
                        Vanguard Windsor (vwndx)

mid growth -  T. Rowe Price Diversified Mid Cap Growth (prdmx); T. Rowe Price Mid-Cap Growth (rpmgx)

mid blend - Vanguard Strategic Equity (vseqx)

mid value - T. Rowe Price Mid-Cap Value (trmcx); Vanguard Selected Value (vasvx)

small growth - T. Rowe Price New Horizons (prnhx); T. Rowe Price Diversified Small Cap growth (prdsx)

small blend/value - Vanguard Strategic Small Cap Equity (vstcx);  Wasatch Micro Cap Value (wamvx);
                                Wasatch Small Cap Value (amvx)

sector reit - T. Rowe Price Real Estate (trrex)

sector health - T. Rowe Price Health Sciences (prhsx); Vanguard Health Care (vghcx)

sector technology - T. Rowe Price Global Technology (prgtx)

foreign large value - T. Rowe Price International Growth & Income (trigx)

foreign large blend - Oakmark International I (oakix); T. Rowe Price Spectrum International (psilx)

foreign large growth - Vanguard International Growth (vwigx)

foreign small/mid growth - T. Rowe Price International Discovery (pridx)

foreign small/mid value - Oakmark International Small Cap (oakex)

diversified pacific/asia - Matthews Asian Dividend (mapix)

pacific/asia ex-japan - Matthews Asian Growth & Income (macsx); Matthews Pacific tiger (maptx)

world stock (multi-sector growth) - Wasatch World Innovators (wagtx)

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)

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 - T. Rowe Price Global Multi-Sector ond (prsnx)

bank loan - T. Rowe Price Floating Rate (prfdx)

intermediate-term corporate bond - Vanguard Intermediate-Term Investment-Grade (vficx)

government mortgage/non-agency bond - DoubleLine Total Return N (dltnx); Vanguard GNMA (vfiix)

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   

  Loomis Sayles: 633-3330    Matthews Asia: 789-2742    Oakmark: 625-6275       

T. Rowe Price: 638-5660    Vanguard: 662-7447   Wasatch: 551-7100

Other Strategies - select from the following:


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