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Does anybody do this and/or is this something that makes sense?

I am setting up a SEP-IRA and I was planning on using the Unemotional Growth 5 stategy through Ameritrade. (I currently have a non-retirement account which includes the foolish four stategy so that is why I am using the UG-5)

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Hi Soltan,

Yes, I've tried Robert Sheard's UG5 approach. It might work, but it has two big strikes against it. First, it requires monthly reballancing. That eats up a lot of dollars in commissions. Second, it is a highly volitile strategy. You need ice water in your veins to stick with it. I tried twice and couldn't do it.

There are several good alternatives to the UG5 approach. I like the PEG models. They work well with either 6mo or 12mo reballancing. They start with Value Line 1 & 2 Timeliness ranked stocks, and they have a value component.

The VL Timeliness ranking is a time-tested method of picking superior performers. Models that start with have a great chance of succeeding. Adding the PEG ratio gives a value component to the selection process and tends to reduce volitility.

Drop by the FOOLISH WORKSHOP board for lots more information on these types of investment strategies.

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