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 New America Growth (prwax); T. Rowe Price Spectrum Growth (prsgx)

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

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)

mid value - American Century Mid Cap Value (acmvx); Delafield (defix); T. Rowe Price Mid-Cap Value (trmcx);
                    Vanguard Selected Value (vasvx)

small growth - T. Rowe Price New Horizons (prnhx)

small blend/value - Royce Dividend Value (rydvx); Royce Low-Priced Stock (rylpx);
                              Royce Pennsylvania Mutual (pennx); T. Rowe Price Small-Cap Value (prsvx)

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

sector health - T. Rowe Price Health Sciences (prhsx)

foreign large value - Dodge & Cox International Stock (dodfx)

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

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)

latin america - T. Rowe price Latin America (prlax)

diversified emerging markets - T. Rowe Price Emerging Markets Stock (prmsx)

world stock (large blend) - Oakmark Global I (oakgx)

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 - Loomis Sayles Global (lsglx); T. Rowe Price International Bond (rpibx)

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)

Website Links and 800 Telephone Numbers

American Century: 345-2021    Delafield: 697-3863    Dodge & Cox: 621-3979  

 Loomis Sayles: 633-3330    Matthews Asia: 789-2742    Meridian: 446-6662   

Oakmark: 625-6275    Royce: 221-4268    T. Rowe Price: 638-5660    Vanguard: 662-7447

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