3 Fund Portfolio
eddy409 
04-20-2008, 4:42 PM | Post #2510033 |  5 Replies

What do people think of the following portfolio:

 60% Fundamental Investors
 20% Bond Fund of America
 10% Reit Fund

5 Replies
Re: 3 Fund Portfolio
04-20-2008, 7:43 PM | Post #2510074
Hide

Eddy,

What are your investment objectives?

Wayne.

Re: 3 Fund Portfolio
04-21-2008, 6:05 AM | Post #2510137
Hide

Wayne,

 I just want something that I can put my money into not really worry too much.  I have 35 years until retirement.

Re: 3 Fund Portfolio
04-21-2008, 5:31 PM | Post #2510358
Hide

Eddy,

Is this in a tax sheltered account or in a taxable account? Are you familiar with the load structure of the funds and the debates for or against load funds? Do you have any other funds or accounts that you are currently invested in? What funds are available to you besides the one you listed?

What would say is your level of knowledge in terms of investing. It is very important for one to be aware of what qualities are in a fund that a person owns and his/her threshold for risk!

Something I found helpful is I defined my objectives wrote them down and began a dispassionate journey in seeking to find funds that met those objectives. I encourage you to think about doing the same...I found it helps one to stay on track over the long term.

Thanks, Wayne.

Re: 3 Fund Portfolio
04-22-2008, 10:25 PM | Post #2510769
Hide
[quote user="eddy409"]

What do people think of the following portfolio:

 60% Fundamental Investors
 20% Bond Fund of America
 10% Reit Fund

[/quote]

I would go with more international exposure and more mid/small cap exposure for someone with 35 years to retirement:

10% New World - NEWFX

10% EuroPacific - AEPGX

10% Small Cap World - SMCWX

10% REIT Fund

10% Capital World Bond  - CWBFX

25% Fundamental Investors - ANCFX

25% Growth Fund of America - AGTHX

Re: 3 Fund Portfolio
04-24-2008, 8:14 AM | Post #2511281
Hide

American has already put together a few three fund portfolio suggestions for you.

 The long-term growth oriented TRICAP:

33.3% each in AMCAP, Smallcap World, EuroPacific
 

 The Asset Allocation Growth strategy called TRIAD:

33.3% each in New Perspectives, ICA, and Bond Fund of America 

For steady growth and lower volatility, you may want the "All Weather Foundation":

40% AMCAP

40% American Mutual

20% Bond Fund of America
 

 

Of the pre-packaged ideas I like All Weather best. I do my own three fund portfolio

 35% AMCAP
 35% CWGIX
30% CAIBX