Is this a good portfolio balance?

Question

Hi,

Let me first tell you what my plan is for my stock and then I'll give you the portfolio. I plan to invest as a moderate to aggressive investment with no plan to withdraw funds over the next 15 years. I will rebalance annually and dollar-cost average my investments monthly. By choosing these stocks I avoid trading fees and the minimum investments are VERY low, is this a good portfolio balance?

20% of Investments into Mutual Fund: SWTIX

30% of Investments into Mutual Fund: SWMSX

30% of Investments into Mutual Fund: SWLBX

10% of Investments into Mutual Fund: SWINX

10% of Investments into Mutual Fund: SWOIX

If you answer yes, sweet~ If not, please provide details of stocks only if they can be purchased through Charles Schwab or etrade with no trading cost! I also need funds with very LOW starting investments and low amounts that you can contribute afterwards. I would really like to know how balanced this is before I start investing!

Answer 1

I think it looks good.  It has a good mix of international, bonds, small cap and large cap.  As long as the fees are low and you have the right percentage in each according to your risk tolerance.

Answer 2

I'd skip the two Laudus funds (SWOIX and SWMSX

) -- primarily because of the higher fees compared to index funds, and high turnover, and they don't reliably outperform their equivalent indexes.  The SWOIX overlaps somewhat with the SWINX, doesn't it?  And the SWMSX to a small degree with the SWTIX?

You can construct a nice minimalist index mix with just the other ones.  (Although if you are doing this with a 15-year horizon, I'd also keep the bond allocation lower.. 10% perhaps.)  There is no need to complicate this further until you have accumulated a significant sum in these.

Your plan overall is an excellent one and if followed will put you ahead of the vast majority of people.

Answer 3

I beleive it is a good mix of what you say as long term, safe and aggressive  strategy. Go ahead .

Answer 4

Hi,

I suggest you go to a site dedicated to answering questions like yours.  You can list your information and get some good advice, without people trying to solicit your business.   Two sites,  Morningstar.com-- has a forum, pay for other info.  Moneyrec.com-- free to users and very helpful.  I use moneyrec when I have an investment question.

Best of Luck

Grace

Answer 5

I would hold no more than 3 mutual funds.  The funds overlap and you do need a good energy play:  my suggestions would be PBR, or XOM in oil.  BUCY as a way to play coal. Or JOYG a coal eqipment co. I have read your "plan" it is well thought out.  I would be OK with you going that way if you like. But, I really think all of these holdings should be inside a qualify retirement funds, usually an IRA.  The tax conseqences

would be a nightmare in a taxable account.

Answer 6

Why mutual funds? try this

15% Dividend-growth Financial stocks

10% banking (Citigroup)

5% brokerage/insurace (UBS/Credit Suisse/AIG/Manulife)

15% Dividend-growth Commodity stocks

5% oil & gas (PetroChina/BP)

5% agriculture (Potash)

5% precious metals (BHP Billiton)

20% Dividend-growth Consumer discretionary stocks

7.5% restaurant (McDonald's/Yum!)

7.5% household products/beverages/food processing (P&G/Pepsi/Kraft)

5% drugs (Johnson&Johnson)

20% Dividend-growth Technology stocks

7.5% computer (Intel/IBM)

7.5% industrial/alternative energy (Caterpillar/General Electric)

5% automobile/aerospace (Honda/Boeing)

15% Foreign indexes

7.5% Asia (Malaysia & China)

7.5% America (Latin America & Canada)

15% Liquid Assets

10% cash/bonds

5% gold

Answer 7

So sorry, I'm not familiar with the funds. (fund name) I'm from Malaysia.

It's always good to invest with diversifying into different type of funds, sectors, regions...

And you are right, Dollar Cost Averaging is VERY Important in Mutual Fund Investment.

Fund selection is depend on few foctors such as your Risk Profile, Investment Objective, Investment Time Horizon & etc

regards

Adrian