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| *Ostroff, Fair and Company>>>Personal Finance |
Ideal portfolio in retirement with modest risk for growth and income? |
Ideal portfolio in retirement with modest risk for growth and income? You probably want more bonds than stocks -- a 60/40 ratio or so. The bonds could be some combination of a Total Bond Index Fund, with some smaller percentage of higher yield bond funds. The stocks could be most a Total Stock Market Index Fund plus some smaller percentages of Small Company Index Funds and International Stock Index Funds. Stick to the large companies like Vanguard, Fidelity, or Schwab and pick the index funds with low expense ratios (0.20% and smaller). The broad combination gives you balance between highs and lows of various sectors of the economy (and the bonds ensure a stream of income). Or you could just go to Vanguard and take the VTOVX Fund -- Target Retirement 2005 Fund. They charge an expense ratio of 0.21%, which you can beat (especially if you have more than a couple hundred thousand dollars and can get Vanguard's "Admiral" funds, which are down in the 0.10% area -- that tenth of a percent is hundreds of dollars per year and compounds with time!) Good luck to you! Doug |
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