Mutual Funds/401K


My company has below choices:
Galliard Ret Income 35     %  
PIMCO Total Return Instl     %  
Vanguard Wellington Adm    100%  %  
Vanguard Windsor II Adm     %  
Vanguard Institutional Index     %  
Harbor Capital Appreciation     %  
JPMorgan Mid Cap Value I     %  
Vanguard Mid Cap Idx Adm     %  
T.Rowe Price Mid-Cap Growth     %  
DFA US Targeted Value I     %  
Invesco Small Cap Equity R5     %  
T.Rowe Price New Horizons     %  
Oppenheimer Intern Growth Y     %  
Harbor International Instl     %  
T.Rowe Price Health Sci     %  
Fidelity Adv Real Estate I     %  
Vanguard Target Retir Inc Inv     %  
Vanguard Target Retir 2010 Inv     %  
Vanguard Target Retir 2015 Inv     %  
Vanguard Target Retir 2020 Inv     %  
Vanguard Target Retir 2025 Inv     %  
Vanguard Target Retir 2030 Inv     %  
Vanguard Target Retir 2035 Inv     %  
Vanguard Target Retir 2040 Inv     %  
Vanguard Target Retir 2045 Inv     %  
Vanguard Target Retir 2050 Inv     %  
Vanguard Target Retir 2055 Inv     %  
Vanguard Target Retir 2060 Inv  

I am in my mid 40, what % contribution would be a good portfolio?


Dear F:

Here are some guidelines to creating a good retirement portfolio:

Tip your portfolio toward large-company stocks, especially those that seem undervalued.
But have exposure to small-company stocks, too--perhaps 15% of your total exposure to stocks.
Same goes for foreign stocks: a 10-20% exposure seems reasonable.

Own a variety of fixed-income investments. Government bonds, foreign bonds, and so forth.

In putting together a portfolio, ask yourself:

Do you want to spend a lot of time tracking your holdings? If not, a target retirement fund is a good idea.

Before choosing a mutual fund, check what Morningstar Mutual Funds writes about it. Does it get four/five stars? Does M* recommend it? Is it too volatile for you?

I myself am a big fan of Vanguard, and there are benefits to having most of your money under one roof.

But your choices do NOT seem to include any fixed-income funds apart from Galliard--which is an impressive multi-manager fund.

Finally, double up on everything. Better too many funds than too few.

What you might do is put your money into Vanguard Target Retirement  2040 or 2045 until you do your research into the other funds--and decide which you want in your portfolio. The Target funds already have exposure to bonds, so you would avoid the Galliard fund.

Good luck.  

Mutual Funds

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Warren Boroson


Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.


Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.

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