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Allocation and Index funds?
Old 04-21-2007, 06:16 PM   #1
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Join Date: Mar 2007
Posts: 26
Allocation and Index funds?

Aloha once again!

Quick Stats: $500k to invest, currently 100% in a money market fund. 29yrs old, want to retire at age 35.

I have decided I'm comfortable with 70% in stocks and 30% in bonds. I want to keep my investing really really easy, just a handful of holdings, re-balance my portfolio twice a year, after any big bumps.

What that info, do I dare go jump in with just index funds? It seems like the low cost and returns from these two index funds meet my goals; Is there a risk that I am over looking of having just two index funds? One other thing I'm not sure about are tax issues, any tax issues I need to know about when holding index funds? Here are the funds I'm looking at currently:

60% in FSTMX
10% in FSIIX

As for bonds, both of these come highly recommended from

20% in MBDFX
10% in AGG

What do you think? I'm happy with my 5% MM fund until I figure out where exactly I want to go with this...


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Re: Allocation and Index funds?
Old 04-21-2007, 06:38 PM   #2
Recycles dryer sheets
Join Date: Apr 2007
Posts: 251
Re: Allocation and Index funds?

If you have $100k or more to put into fstmx, you need to discuss with them about getting the "advantage class" rather than "investor class". I may be mixed up on the name, but the expense is a little bit lower on the clss that takes $100k. You may need to make them dig since the guy I asked about it did not know about it at first and had to go ask somebody.

I dont remember the exact cost but if the normal one was .10% then this one was .08%

They said that the funds were the same, just different charges. They also have "institutional class" but I think that takes $1M.

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Re: Allocation and Index funds?
Old 04-21-2007, 07:48 PM   #3
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Join Date: Jun 2005
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Re: Allocation and Index funds?

i think 6 years is too short term on planning to make enough to retire in stocks. for all you know we are repeating 1965-1982 and in 6 years we will be exactly where we are now in terms of market valuation
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