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Subject:  Re: Rip Van Winkle Portfolio Date:  3/22/2004  10:14 AM
Author:  yobria Number:  39933 of 88775

Asset allocation depends drastically on one's age and years to retirement. With almost half its assets in bonds, this portfolio would be appropriate for a retiree, but not a 40 year old (assuming this is retirement money) who has 20 years of new money to contribute before retirement.

Further, you'd want to move the bonds in the taxable account to the IRA, and the IRA stocks to the taxable account. Stocks lose their preferential cap gains treatment if left in an IRA. At that point you'd no longer need tax exempt bonds.

I'd also mix a CD ladder in with the bond funds, since CDs have more favorable risk/return characteristics at the moment.

I like the fund families, and choice of funds.

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