Part of must-read guide: How to build an all-weather portfolio, step-by-step.
What are Balanced and Target-Date Funds
Step 11. Consider a one-fund alternative to (see whether it might be a simpler solution.)(and other practical considerations.)
So far, we have built a very robust and flexible all-weather portfolio by describing three portfolios:
- U.S. stocks
- Non-U.S. stocks
- U.S. bonds
Time to look under the hood in the name of simplicity. We need to consider:
- one-fund portfolios (two types)
- two-fund portfolios
- three-fund portfolios
Target-Date Funds (a popular one-fund alternative)
Balanced Funds (and other popular one-fund alternatives)
Two-fund portfolio (combine all stocks into one)
Low Cost Mutual Fund Providers
Step 12. Choose a custodian for your investments
How to choose an institution to be custodian for your investment?
- Do you need face-to-face attention? AGEdwards? Fidelity office?
- Should you use several institutions for safety?
- How is their product line? Cost
- do they need to sell you products …
Top Ten Mutual Fund Providers
Ordered by size or service:
How do you re-balance?
Step 13. Rebalance every year to stay on plan. Most important: stay the course.
Set and Forget, Buy and Hold
Re-balancing during accumulation phase
Re-balancing during retirement phase