UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: readyteddy Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75639  
Subject: Re: 15 years to retire Date: 4/18/2000 5:54 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi:

For what it is worth, here are a few suggestions for investing with a 15 year time horizon.

1. I believe the core holding should be in a no load index fund based on the S & P 500, such as Vanguard Index 500. Over the long haul, few actively managed funds out perform the Index.

2. Given the long time horizon, if you want to swing a little, you might consider buying a few shares of the Nasdaq-100 Index Trust. These shares trade on the Amex under the symbol QQQ. The shares are based on an index of Nasdaq's largest non-financial companies. This index actually has outperformed the S & P 500 over the last 15 years. What I like about this one is that it will give you a play in most of the big name tech stocks like Intel, Microsoft, Oracle, ect. and also give you a fractional interest in Yahoo!, Amazon.com, JDS Uniphase, ect. I believe at this point some of these stocks will be home runs but it is impossible to quess which ones, so buying a basket containing a number of the better names is the way to go.

I would keep a little cash in a money market fund...maybe 5%.

Also, starting in about 10 years, I would reduce the stock holdings of the portfolio by 10% each year for five years, replacing the stocks with Treasuries of 5 years maturity. Year 10, sell off some stocks and buy 5 year treasuries; year 11, sell same amount of stocks as the previous year, buy 5 year treasuries.

This way, 15 years from now, your dad will have a diversified stock portfolio and a bond ladder to generate income and will have reduced the risk each year for five years as he moved closer to retirement.

Good luck
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement