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Diehard Sunny Sarkar's beautiful IPS
Taylor Larimore 09-18-2006, 8:27 PM | Post #183427 | 
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Hi Diehards:
Many of our best posts are never read because they are "buried" in long Conversations.

I have copied below a link in Reply 27, Conversation 53291, which I think deserves its own Conversation:
_____________________________________________________________________

INVESTMENT POLICY STATEMENT:

Investment Philosophy:
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

Asset Allocation:
Maintain overall 60% stock + 40% fixed-income allocation until home purchase to accomodate both short-term and long-term requirements. Assets should be diversified across major asset classes including domestic equity, international equity (20-25% of equities), conventional bonds of short to intermediate term, and TIPS (50% of fixed).

Funds & Accounts:
Use low cost mutual funds - index funds preferably - which do not overlap and provide maximum diversification across asset classes. Try to assume only market risk as far as possible. Try to shelter tax-inefficient funds in tax-advantaged accounts to reduce tax drag.

Target Allocation:
VTSMX - Total Stock Market Fund 45% - Taxable account VGTSX - Total Int'l Market Fund 15% - Roth IRA
VIPSX - TIPS Fund 20% - Traditional IRA
IIBAX - Intermediate Bond Fund 20% - 401k
VMMXX - Money Market fund (6 months' expenses) - Taxable account

Other considerations:
Automate future contributions wherever possible. Rebalance yearly. No market timing. Exact sub-allocations are not as important as maintaining the overall 60/40 stock/fixed allocation - no need to make things complex in order to meet sub-allocation targets.

Signed: Bhaskar Sarkar
_____________________________________________________________________

Thank you, Sunny--and best wishes.
Taylor

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