ETFs, STocks, Bonds

IBSS’s ETF/Mutual Fund Model Portfolios

Many InvestBetterSpendSmarter (IBSS) subscribers have IRA Rollovers and taxable brokerage accounts that they want to manage better on their own. These accounts are outside and separate from their 401k or 403b accounts with their employers. In this blog we present two generic model portfolios (see below) that share our thoughts on how these accounts can be structured. These two model portfolios are based on our TSOA investment method (Timing, Selection, Optimal Allocation). The portfolio you choose to use will depend on the results of your MOAAA experience.

Be sure to check back frequently to see if our recommendations have changed (shown in red). We could make changes at any time.

Please note: When you make actual purchases, the percentages may not exactly match the allocated percentages due to the fact that you cannot buy fractional shares of ETFs. This is not an issue with mutual funds, because you can buy fractional shares of them. Your investments do not have to equal the exact percentages. If you get close, that will suffice.

Conservative Growth Model Using Exchange Traded Funds (ETFs) and/or Mutual Funds (MFs):

Percentage

  1. Cash (Money Market)                                      2
  2. Short Term Bonds                                          10
  3. Intermediate Term Bonds                             15
  4. Small Cap Growth Stocks                                5
  5. NASDAQ Index Stocks                                   15
  6. S&P 500 Stocks                                               20
  7. Information Technology Sector Stocks       10
  8. Healthcare Sector Stocks                                 5
  9. Real Estate Sector Stocks (REITs)                  10
  10.  Utility Sector Stocks                                        10

 

Preservation Income Model Using ETFs and/or MFs:

Percentage

  1. Cash                                                                    5
  2. Master Limited Partnerships                        10
  3. Short Term Bonds                                          15
  4. S&P 500 Index Stocks                                     10
  5. Short Term U.S. Treasury Bonds                    5
  6. Intermediate Term U.S. Treasury Bonds     10
  7. Long Term U.S. Treasury Bonds                   10
  8. Real Estate Sector Stocks (REITs)                  10
  9. Utility Sector Stocks                                        10
  10.  Top Dividend Yield Stocks                             20

Good Investing!

Jim Tso


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Jim Tso wants to “give back” and share his 35+ years of successful personal money management experience to help others to achieve their financial goals. Jim created this InvestBetterSpendSmarter blog (IBSS) to provide you with free investing, planning, savings, retirement, and inspirational tips derived from his unique, innovative, and proven approaches to money management. He welcomes and appreciates your feedback.

Jim would also appreciate it if you would kindly share our IBSS website and blogs with your family, friends, and business associates. Thank you!

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