Suggested Portfolios for 2006
In the May 2006 issue of Kiplinger's Personal Finance, we offered the following portfolios using funds from the 2006 Kiplinger 25. We have since updated the Kiplinger 25 and adjusted our suggested portfolios to include different funds and allocations.
Read about the new Kiplinger 25 for 2007, see which funds have been added and removed and view our updated portfolios.
Long-term: 10+ years away
This package is ideal for your toddler's college kitty -- or for retirement a decade or more away. Invested entirely in stocks, it has a healthy weighting in foreign companies, including a small allocation to an emerging-markets fund. Two-thirds of the stocks are invested in large companies, both foreign and domestic. If this portfolio seems too aggressive, place 10% or 20% of your money in a bond fund, which will provide ballast.
| Fund name (symbol) |
% of portfolio | Fund style |
| Bridgeway Aggressive Investors 2 (BRAIX) | 25% | All-cap growth |
| Marsico Growth (MGRIX) | 25% | Large-cap growth |
| RS Value (RSVAX) | 25% | Mid-cap value |
| Dodge & Cox International Stock (DODFX) | 20% | International |
| SSgA Emerging Markets (SSEMX) | 5% | International (Emerging) |
Mid term: 5 to 10 years away
When you're getting closer to retirement or when your children are nearing high school, add a bond fund. Do so gradually, selling off your stock funds and placing the proceeds in the bond fund. You'll still have the majority of your assets in stock funds, which should provide opportunities for growth, but the inclusion of the bond fund will dial down the portfolio's overall volatility.
| Fund name (symbol) |
% of portfolio | Fund style |
| Dodge & Cox International Stock (DODFX) | 20% | International |
| T. Rowe Price Growth Stock (PRGFX) | 20% | Large-cap growth |
| Bridgeway Aggressive Investors 2 (BRAIX) | 15% | All-cap growth |
| RS Value (RSVAX) | 15% | Mid-cap value |
| Loomis Sayles Bond* (LSBRX) | 30% | Global corp. |
*In a taxable account, substitute Fidelity Intermediate Municipal Income.
Short-term: You need it now
This package is appropriate for those who are within five years of a goal or who are already retired. Investing in retirement is particularly tricky. You can't be too conservative, but you can't afford big losses, either. In figuring your allocation, think of your pension as equivalent to bonds.
| Fund name (symbol) |
% of portfolio | Fund style |
| Dodge & Cox International Stock (DODFX) | 15% | International |
| T. Rowe Price Growth Stock (PRGFX) | 15% | Large-cap growth |
| Bridgeway Aggressive Investors 2 (BRAIX) | 10% | All-cap growth |
| T. Rowe Price Real Estate (TRREX) | 10% | Real Estate |
| RS Value (RSVAX) | 10% | Mid-cap value |
| Harbor Bond* (HABDX) | 20% | Intermediate-term corp. |
| Fidelity Floating Rate High Income (FFRHX) | 10% | High-yield corp. |
| Loomis Sayles Bond* (LSBRX) | 10% | Global corp. |
*In a taxable account, substitute Fidelity Intermediate Municipal Income.
Updated April 2006
