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Author: TwoCybers 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 76384  
Subject: Re: Is not the time to Sell High? Date: 7/18/2013 1:40 PM
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One Dull Portfolio = VWENX

Other configurations exist - the concept is very simple.

#1 A balance of equities & fixed income - in the range of 60/40 to 70/30 (Growth to cover inflation requires equities. Fixed income, unless one thinks interest the ten year bond rate will decline another 10%, will not even break even).
#2 Although many people say passively managed index mixes will work better, I prefer some level of active management - I would rather avoid the parts of the market that are going no where.
#3 I live in the the USA, so exposure to places beyond the USA, while nice is not critical. In point of fact there are very few companies in the S&P 100 that do not have at least 5% of their profits & sales from outside the USA.
#4 Have enough cash or cash equivalents that you can live for at 24 months without selling the investment side - that may be less than years normal spending if you are willing to hunker down, skip a vacation, stop dining out, etc.

If you don't like VWENX, another good fund would be DODBX. There is certainly no guarantee these funds will do as well, but they have a track record that is decades long and they have never reached to the top growth - they have tried to be balanced. In both cases 2008 was very scary. Both returned to previous highs in 2010.

Morningstar has a Premium feature that "Finds Similar Funds" compared to any target fund. The analysis is returns different lists based on Overall Morningstar Scores, Risk, Performance and Portfolio. A very useful tool.

Gordon
Atlanta
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