Asset Allocation

[kenepp1]

O.K. you experts out there. I have just retired & moved all my assets (about $1.1 mil) to VG. I just received their recommendation and they don't cut it in my 1997 to date model. They wanted to put more about 34% in LC (including US growth (ugh)) including 40% into the various bond accounts (including LTB). I get a much better total with less down year percentage with more equal (similar to Coffeehouse) than that.

Here is my question: I get the best model (including 9 year average, 3 yr and 5 yr) if I put 10% into Fairholm (FAIRX) and reduce LC and Mid cap. Fairx is rated 5 stars, did not lose in 2001 or 2002, but does charge 1% ER. It seems like an alternative to adding value to LC. What say you?

[LOL!]

FAIRX is just a mid-cap value fund with a big cash percentage. MDY, the midcap SPDRS and the Vanguard Midcap fund VIMSX did as well.

FAIRX did not exist in the first half of 2001.

Anyways your plan seems OK to me.

[kenepp1]

Actually FAIRX started up in Dec '99. They don't really replace the MCV index. Their portfolio shows 57% LC; 31% MC; and 12 SC. This includes 18% foreign. I know they are classed as MCB. I was mistaken tho, they did lose 1.6% in 2002.