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URL:  http://boards.fool.com/heres-my-take-do-we-invest-in-the-same-funds-18463569.aspx

Subject:  Re: Asset Allocation for Retirement Date:  1/21/2003  3:26 PM
Author:  FuskieFool Number:  35596 of 75383

Here's my take...

Do we invest in the same funds in lock-step?

No. If you do, then if you pick a bad fund, your wife loses too. Best to diversify - she may have a different investment strategy, such as more risk or fewer stocks.

1) Do we manage each of our separate IRA portfolios individually or separately?

What is the difference? Roths are individual (not co-owned), so they have to be separate accounts. But they can be with the same institution.

In chosing future index funds to invest in should we buy funds that benefit a one portfolio concept or a two portfolio concept?

If you strongly feel you will stay together until the end, create a strategy in which each account is a part of the whole (like your marriage). If there is a possibility that you may go your separate ways, then treat each account as a complete strategy.

Because we will be retiring at different times, she is 50 and Iam 56 how does this impact our retirement withdrawal rates if we treat both of our portfolios as one retiremnt fund?

This will depend on how each account is performing, I guess. You want your in-fund reserves to continue appreciating in your retirement years. You will probably switch to a more conservative approach before your wife does, but eventually you will be focusing on preservation and appreciation rather than growth.

At the present time my wife and I have the following asset allocation: 1) S&P 500 index Fund in a tavable account; 2)She has a Total Bond Market Index Fund in a Roth; and 3)I have a Small CAp Value Index Fund in a Roth. Ultimately we would like a 65% to 35% stock to bond allocation. This year we are considering a REIT for her and a Short Term Corporate Bond Index for me. Any thoughts or ideas regarding our problems and questions would greatly be appreciated. Thanks in advance for your time and consideration in this matter.

Maybe it is just me but at your age, with retirement less than 20 years away, you may want to consider a less agressive approach. As far as bonds go, I would persue proven high yield funds. As far as stock go, I would avoid large cap and growth stocks and focus on value stocks that will catch the wave of a market rebound.

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