Well..

1. How's your Investing Methods Done for you over say the past 5,8 & 10 yrs? Have you done a few ports of trying your luck and see how they would have come out?

then compare them to those Balance Funds?

If the last Bear market was the Longest in recent history? ie: 3 yrs

Then I would think is pretty safe to say 5 yrs horizon is ok

Especially in a Balanced Portfolio or Funds

To be Extra Safe? I'd add some Bond Funds to get down ot a 50/50 or even a 40/60 mix.

As for Int'l? Outside whatever My Bal. Funds have? Not for me

You may alos want to look into WMRIX.. not just for now, but for your Future.. assuming yo Do Grad and Pass the Bar, etc..and make the Bigger Incomes.. You can sneak in the back ddor thru Setting up a Fido/IRA and gor only $2,500 get in it. vs the $500k Min. or Just buy it's sister Load Fund WMMRX.

3 yrs? I would consider short term bonds like; 1st yrs $ in MMkt, 2nd & 3rd in VSGBX, FIBIX

and Now sure looks like a Great time to get in the game..some great buys going on..

but most are waiting until they see the Banks do Some Lending , etc.. I follow the Price of Copper and a few other indicators..that worked for me last Time around ..in the 1st qtr of 03'...

and on the positve side? What's $15k and Whatever you add to it? Vs Making $150k+ once you join a Law Firm? This $ is going to look like Pocket change then..and I'd be using it for Training School/Education for by the time you have some Real $, you will have some experience going for you..

Best of Luck Counselor..

I have 90% of my retirement $ In Bal Funds > FPACX,OAKBX,PRPFX,PRWCX, WMRIX with some Bonds ot have a 50/50 mix..10% in Short funds..

Question: Where I’m stuck is what to do for the next five years.

Consider buying 5 year TIPS. They offer more than 2% plus inflation even at 5 years. This is a rare buying opportunity.

Have fun.

John Walter Russell

Thanks for the feedback, I have ordered Bernstein's book and will check it out.

I agree on limiting risk and exposure to equities for my short term goals (that's why I am only looking at balanced funds or other non-equity options) but shouldn't I want to focus on equities for my IRA, since I won't be retiring for 30 years? Its agressive, but I tried to diversify among equities, hitting domestic, international and small, mid and large cap.

 Adam
 

Well, I'm going to try to post a second time. I replied yesterday, but today the reply isn't here.

When you have two goals with different time frames, you need to assign each it's own asset allocation. But, this is usually done by mental accounting because in actuality you only have one portfolio. So, with a time frame of less than 5 years, you should not be in equities for that particular goal.

As for you retirement goal, it's OK to be aggressive as long as you have a good strategy, otherwise you take on uncompensated risk. There are three things you should be aware of with your portfolio; No large cap international, no bonds, and using FMI for domestic large cap. I know I'll have a tough time convincing you that FMI is not a good choice considering it's record, but it's an extremely concentrated fund with just 23 stocks. Funds like this do very well when the the market is favorable, but when the market turns, focused funds can get hit very hard. As for large international and bonds; they are essential asset classes for a long term diversified portfolio.

I'm glad to see you are going to read Bernstein. I think you will find in both enlightening and enjoyable. Post again when you're done.

Paul 

Paul,

Thank you so much for the advice regarding Bernstein's book! I'm sold on the concept of index investing and I'm putting together a 70/30 portfolio.

I have one problem with an international index fund (foreign large blend). I need to screen out a few international companies that are involved in Sudan and almost all of the index funds have a few of those companies in them. Do you have any suggestions for actively managed international foreign large blend funds with low fees?

Thanks!

Adam
 

Hi Adam,

 I'm glad you enjoyed the book. I don't have any recommendations, but you might take a look at Vanguard's European Index, VEURX. You can also run a free screen on M* for low cost active funds, but I don't think you can screen for Sudan.

Excellent time to get into the marke by the way, but be reasonable in your equity allocation and be diversified as you can.   

Paul 

Based on my plan, the first international fund I want to move into is the Vanguard Total International Stock Index Fund, but unfortunately, it has Sudan-linked holdings.

I couldn't find an index fund to substitute it, but two other Foreign Large Blend funds that I like are Vanguard International Growth Fund (VWIGX) and Manning & Napier World Opportunities. The Vanguard has a lower expense ratio, but I'm hit with a $50 transaction fee through Schwab that is waived with the Manning & Napier fund. Any thoughts on these guys?

Being a Do-It-Yourselfer is cute, but do you Do your own Plumbing, Electrical, And Auto Repairs too? To do you Build Your Own House? and how about taking care of your own Teeth..do you do your own Dentist work? Or howa bout People doing their own Lawyer Work?

Point is? It Takes a Pro to Keep up with or Beat A Pro and It takes a Pro to Stay even with or Beat the House..so, why are you going into a territory that is Run by Pro's?

To be a Penny Wise and a Dollar Foolish...to save a Few bucks..

and look what that has done to some 93% of Investors who have tried?

All these Individual MFunds were created to Get your Money... The Pro's set all this MF business up, since it was a easier way to get to the Publics $ vs fighting each other..Like hiring a 10 yr Veteran Lawyer to fight some 3rd Yr College Kid in Law School...

i bet you probably do your own taxes to save a few bucks too.. and think you beat the pro's?  LOL

The Odds R Against you"   Read this> 11 reasons passive investors let Wall Street steal their money - MarketWatch    &  Amazon.com: The Brainwashing of the American Investor: The book that Wall Street does not want you to read!: Steven R. Seleng.. 

Either Hire other Pro's by Owing Only Balanced Funds from VWINX, VWELX, FPACX, OAKBX,PRPFX,WMRIX/WMMRX or like kind Or Stay out of the Business... Your trying to get into a Business of Trying the Beat the House and you know what that means in Vegas don't you?  You Haven't got a Chance.. The Odds are stacked against you..

Own nothing buy CD's/ Treasuries until you get the $ to Hire A Pro or Ready to invest for the long term and into Balanced Funds..and focus your Energy, Money and time becomming a Pro in your Field of work and make your fortune that way.. not trying to beat The Pro's..that know every play in the book to get your $..While you ? Haven't got a clue..and won't for Decades, no matter How many books you read !

Time management: If you can make $500/hr as a Lawyer? To make $10,000 takes 20 hrs and to make $10,000 in the market? Your going to have to either(a) have $150,000 plus to invest in bonds or Have to devote at least 50 hrs to have a 5-1 odds of doing so with less.. Which gives you the Best Odds of accomplishing that goal?

Now, which do you want to do?

;0>)