Kiplinger Today

Mutual Funds

We Want to Live Comfortably

Lynda and Tim Kalucki are comfortably on track for retirement, a goal they hope to realize in 15 years. In addition to socking money away for college for their three daughters, ages 7 to 12, they save $80,000 to $100,000 per year toward retirement.

They can afford to do so because Tim, 42, co-owns ITS Technologies, a specialized job-placement service, and Lynda, 41, runs the office of a large medical practice near their hometown of Sylvania, Ohio. Tim isn’t sure whether he will sell his company outright after he retires or cash out over time. Either way, the couple will get a big boost in retirement.

The success of Tim’s company, like any other small business, is tied to the economy. Because the couple’s future income is so dependent on the business, they have a large amount of stock-like risk built into their finances. As a result, they should hold more in bonds than another couple with the same time horizon might need (we suggest this portfolio as a starting point for someone who is six to ten years away from a goal). The portfolio would have lost 40% during the bear market but recovered 80% since.

See the balanced portfolio for medium-term goals.

See all 22 of our recommended portfolios.

Editor's Picks From Kiplinger

More Sponsored Links


Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit any posted comments for clarity, appropriateness, civility, and relevance to the topic.
View our full privacy policy


Market Update

Featured Videos From Kiplinger