fattylikescake:

Lili:

CWGIX, ANCFX, and AGTHX approximately 20% each. AIVSX and SMCWX about 15% each. NEWFX about 10%.

I am 47 years old and a lot of my retirement is in the Texas Teachers' Retirement System. I will probably work full time for about 10 to 15 more years, and then I can teach at a local college part time under the age of 65.

Thanks,

fattylikescake 

I typed that portfolio into instant x-ray.  It comes out about 88% stocks and the rest in cash and bonds.  About 46% of the stocks are US stocks.  About 77% are large cap stocks, doesn't tilt toward value or growth.

It looks like a good mix for someone your age, but you could achieve the same mix using other no load funds.  I would keep the 20:20:20 CWGIX:ANCFX:AGTHX but look for no load options for the other funds.

If you sign up for premium membership and it is free for 2 weeks, you can find out the stock overlap between the funds and decide if you like the particular stocks you would be investing in.

I would just go with Cwgix 100%

t

Lili:

Thanks for the information. I would like to contribute the maximum to my Roth for 2008, but I want to be confident that the money is being invested well, especially since previous professional advice may not have served me very well.

Thanks,

fattylikescake

I have talked with many people recently who tell me not to worry so much about load or no load. These are people who are AF investors and have been with them for many years. Do you agree with them?

Thanks,

 fattylikescake

The load pays for a service.  If you dont need the service, then it is just an unnecessary  drag on your portfolio.  American funds have very reasonable ER's, you will do fine with them if you decide to go that route. 

Fatty, it sounds to me like you want the services of an advisor, yes?  Are you looking to Do it yourself?

If your satisfied with your choice with AF, perhaps we can forget about the load and talk funds.

 Brian

I definitely want an advisor. I liked the one that I met to discuss the transfer of money from the annuity (making 3%) to mutual funds. She talked with me about my goals, time line, and risk tolerance. She then recommended AF. After doing some research, I am very comfortable with AF. I like the team management approach, worldwide resources, and track record.

When I began the post, I was just curious about why someone would pay a load when so many companies have no load mutual funds.   

Thanks,

fattylikescake

When I began the post, I was just curious about why someone would pay a load when so many companies have no load mutual funds.

If you are doing business with a full-service brokerage, like Merril Lynch or Edward Jones, you will not have access to no-load funds.  That's how those brokerages make money, by collecting sales commissions.  But if you invest on your own, either directly with a fund company or through a discount brokerage, you can buy no-load funds and of course still have access to loaded funds like those from American.

Also, with many discount brokerages and fund families you will not pay any annual "maintenance" fee or transaction fees.

I know many people are not comfortable with investing without an adviser, but the commissions and other fees are a trade-off.

Good Luck 

Dear Fatty;

I am aware of 2 types of advisors.  It sounds to me that the one who you consulted will receive a commission based on how much money you invest in American Funds.

There is a second type of advisor.  They are called a flat fee advisor.  They will provide the same service that the person you consulted did.  You will pay them a fee for their advice.  Usually the fee is $250 to $500 for 2-3 hours of their time.  These people will also act in your best interest they will not recommend load funds as they are being paid by you.  A good flat-fee advisor will also allocate your money based on your risk tollerance, etc.

Perhaps you might consider getting a second opinion.

Good luck in whatever you choose.

Jeannie

TaylorZR:

I would just go with Cwgix 100%

According to instant xray, that would give you about 19% US stocks, 72% foreign stocks and the rest in cash and bonds.  Of the stocks, about 53% would be European and only 23% US and Canada.  That is too much European and not enough US exposure for me.

A 50:50 split between CWGIX and ANCFX gives you about 40% US stocks, 50% foreign stocks with the rest in cash and bonds.  Of the stocks, 35% are Europe.  It is a large cap portfolio with a tilt toward value stocks.  I would add in some more mid/small caps and large cap growth stocks using no load funds.