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Posted: 2/28/2006 7:32:23 AM EDT
The following is an investment advice article that I think is well-researched, analyzed, and drafted. It is called the Ultimate Buy-and-Hold Strategy. There are also other good articles. Maybe one of you can make it hot.

http://www.merrimancapital.com/education.html

I have no relationship, profit or other incentive or connection to the author or the firm. I don't have my money with that firm because (1) I don't have enough and (2) paying a percentage of my portfolio's gross value to someone to "manage" is against my strategy. But I like their theory and proposed portfolio (which is modern portfolio theory in practice) and their position to minimize expenses by using low-cost index funds. I like having the tools and resources to study for myself and make my own decisions.

My father-in-law came across the article and I was skeptical at first to some of the propositions. But after studying the article I have come to be a believer. I have spoken with several people about the article and they can't find any flaws in it. I like the idea that I don't have to constantly keep up on the market but that I can check from time to time and rebalance after a year or so. I also like the confidence of many years worth of data and spreading the risk.

Before reading the article late last year I was in large cap value (DODGX), midcap value (HWMIX) and large cap international (FDIVX) through my work's 401k. I have added the small cap value (the DFA fund), reduced my mid-cap fund, and put some money in a short-term investment grade bond fund to provide me with some comfort. I will put more into international later after a correction (which I think will happen). I am gradually moving toward the recommended portfolio. Let me know what your thoughts are on the article. Even if you don't use the proposed portfolio, I think we can all learn something from the data. If you find a fault with it, please explain and provide reasoning and data if possible. Maybe we'll learn something from your comment.
Link Posted: 2/28/2006 3:35:43 PM EDT
[Last Edit: 2/28/2006 4:10:16 PM EDT by mags]
As I've been advocating to those here it compares itself to 'vanguard' indexes. The allocations seem ok however vanguard now "charges" .5% entrance and exhit fees in some of its funds. Glad I started before that, now nearing retirement i'll only have to pay the .5% exhiting fees on any funds that charge it. Sometimes they wave the fees also altogether. Sector funds have had the greatest returns w/vanguard for me. Indexes are for those of us with less than seven figures IMO.Unless your a player ....to them I say go play!
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