AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
Question I retired 2 years ago and have left part of my retirement investments in a 401K plan that my former employer has handled. The funds include ICAP Equity Fund, Northern Trust S&P Equity Index and EuroPacific Growth Fund. The gains have been modest over the years and I have been looking to roll over these funds to something else. I have been reading "The Lazy Person"s Guide To Investing" in which they talk about "The Couch Potato Portfolio' and "The Coffeehouse Portfolio" basically featuring investments with Vanguard. I claim ignorance when it comes to the stock market and mutual funds. Should I be rolling over my existing plan to something that would provide a better return? I am not looking for a "get rich quick" scheme but something I would have more confidence in
Answer In my opinion, how your portfolio should be invested depends on your specific goals, risk tolerance, etc. In my opinion, the first decision to make is how much do you want in cash/stocks/bonds. Once this decision is made, then I feel a low cost index approach (such as Vangaurd) when implementating makes sense. Since you are retired, depending on the amount in your plan, you may want to consider talking to a professional, fee only financial planner for further guidance. www.napfa.org is a good resource. In addition, brokers such as TD Waterhouse and Charles Schwab have advisor programs that you may find useful.
