Re: Balanced portfolio with index funds

There is the rule of 100. Take 100 subtract your age, the difference is the
percentage that should be in equities and the rest in fixed income.

However what you are proposing is not close to a balanced retirement plan.
Having all your retirement in 2 types of funds, a large cap index and a bond
fund. Go look at some asset allocation models and compare them to your risk
tolerance profile. Up to 95% of your return can be linked to proper asset
allocation.

"Anoop Ghanwani" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
> Are there rules of thumb for building a balanced retirement
> portfolio with index funds such as the S&P 500 and the total
> bond market index fund?  For example, would it make sense
> to allocate funds as follows:
>
> Age     S&P 500   Total Bond Market
> <30     100%      0%
> 30-40   80%       20%
> 40-50   60%       40%
> 50-60   40%       60%
>
> Is this too simplistic a plan?  I'm basically looking
> for a long-term investment strategy that is known to work
> reasonably well in all market conditions so that one
> doesn't have to keep watching what the fund manager is
> up to.
>
> Anoop
>