Achiever51
Thinks s/he gets paid by the post
- Joined
- Feb 28, 2007
- Messages
- 1,015
In the June 25 "special investor's issue" of Forture (the same one that has a feature on Nords), the "Questions for...Ben Stein" article includes Ben Stein's following portfolio AA recommendations:
"What I generally recommend for the noncash portion of your portfolio - and this has been unbelievably successful - is a mix of various index funds and exchange-traded funds [ETFs], with roughly
25 percent in an S&P 500 index fund from Vanguard or Fidelity;
25 percent in a Vanguard or Fidelity total stock market fund;
25 percent in EFA, which is an ETF for developed overseas markets;
15 percent in EEM, an emerging-markets ETF;
5 percent in ICF, the ETF for real estate investment trusts; and
5 percent in XLE, which would be your energy fund.
I'm not a big lover of bonds because I think the risks involved in buying long-term bonds are tremendous, and the payment from short-term bonds is trivial. That said, you should have 20 percent of your portfolio in cash. I would say if you can get 5 percent or more on your cash in a CD or savings account, go for it. That way, you have it to tide you over if you lose your job or your health worsens."
What do y'all think about his suggestions? Comments are welcome.
"What I generally recommend for the noncash portion of your portfolio - and this has been unbelievably successful - is a mix of various index funds and exchange-traded funds [ETFs], with roughly
25 percent in an S&P 500 index fund from Vanguard or Fidelity;
25 percent in a Vanguard or Fidelity total stock market fund;
25 percent in EFA, which is an ETF for developed overseas markets;
15 percent in EEM, an emerging-markets ETF;
5 percent in ICF, the ETF for real estate investment trusts; and
5 percent in XLE, which would be your energy fund.
I'm not a big lover of bonds because I think the risks involved in buying long-term bonds are tremendous, and the payment from short-term bonds is trivial. That said, you should have 20 percent of your portfolio in cash. I would say if you can get 5 percent or more on your cash in a CD or savings account, go for it. That way, you have it to tide you over if you lose your job or your health worsens."
What do y'all think about his suggestions? Comments are welcome.
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