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Subject:  Allocation Date:  2/19/2005  9:49 AM
Author:  rrosenkoetter Number:  44730 of 98506

Here's what I've finally come up with... (All Vanguard funds)

Fund Name	                Type     % in Class	% Stocks/Bonds
                               Stocks	                     60%
Total Stock Market Index         Tax	      20%	
Tax Managed Small-Cap	         Tax	      20%	
Tax Managed International        Tax	      20%	
Windsor II	                 IRA	      20%	
REIT	                         IRA	      20%	
	                       Bonds		             40%
Total Bond Market Index	         Tax	      25%	
Short Term Investment Grade	 Tax	      25%	
Limited Term Tax Exempt	         Tax	      25%	
Intermediate Term Tax Exempt	 Tax	      25%	

Here's the dollar amounts

Fund Name                         Shooting for    Start With   Monthly Contrib

Total Stock Market Index            20,000          $5,000        $500
Tax Managed Small-Cap               20,000         $10,000        $250
Tax Managed International           20,000         $10,000        $250
Windsor II                          20,000          $5,000        $500
REIT                                20,000          $5,000        $500

Total Bond Market Index             20,000          $5,000        $500
Short Term Investment Grade         20,000          $5,000        $500
Limited Term Tax Exempt             20,000          $5,000        $500
Intermediate Term Tax Exempt        20,000          $5,000        $500

It will take me about 30 months to get all the money invested. The money that gets put in 
each month will be sitting in a money market during those 30 months.

During those 30 months or after, if and when the stock market becomes more inviting to me 
(i.e P/E ratios come way down, dividend yield goes up, etc.), I will change to an 80/20 mix.

I'm hoping that these funds should be all I need to be well diversified. Asset 
re-allocation every 2-3 years.

Is this a good long-term (20-30 years) allocation plan?

I'm trying to keep it very simple.

Any comments would be very welcome.

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