Reply to @catch22: I was hopeful that folks might wander by and learn a bit. I can spot-check tomorrow; the Analytics program allows us to see where folks are coming from. While about 100 people a month go from here to Amazon, we've rarely noted the reverse.
As to bonds, I don't know about the timing but I can't find much attraction to them, and haven't for a while. My portfolios tend toward emerging markets and global debt, including high yield global, called bonds, some floating rate stuff, rather than simple investment grade debt. In the non-retirement stuff, I've got money in Matthews Asia Strategic Income (Ms. Kong was very persuasive), RPHYX, Northern Global Tactical Asset Allocation (successor to Leuthold with 12% in a broad bond index) and T. Rowe Price Spectrum Income.
David

Immediate fixed annuities have a place in some folks' retirement arsenal. But as was already noted, current yields are not attractive enough to make this kind of guaranteed income doable. That will change, of course. It is still amazing to me how many con artists, (oops, I mean salespersons) there are ready to sell high-priced and high-expenses products that are tied in some way to the market that "guarantee" 5% or 6% or better. And these folks prey on seniors who think their bank or insurance agent would never put them in something that is not right for them. It is, course, just right for the folks who sell them and their companies. Fortunately we have been able to get money back for a few people who came to us right after they were sold one of these, prior to the refund expiration date.

Just outstanding David.
Very much enjoy December post. Rich with content.
PIMCO is so utterly impressive. Funny though how Real Retirement or Retirement Target funds never seem to inspire much.
Glad to see note about Redleaf's Whitebox. If it helps, Schwab offers institutional customers (eg., 401k) no load entry, with lowest fee, $2500 basic, or $1000 IRA minimums.
Glad too to see note about interesting Bretton Fund.
Will look forward to discussion with Andrew Foster of SeaFarer, as well as with Matt Moran and Dan Johnson of ASTON River Road.
Hey, in addition to looking at long-short alternatives, you might look into risk-parity approach, which Aness' shop AQR seems to be executing quite well with AQRIX, for example. I like how they seek multiple markets, daily, based on pre-defined volatility level.
Not sure I like idea of sister sites, but I'm getting old. Are you sure? Seems we are just now starting to achieve critical mass. Perhaps we could bulk-up a bit, grow our AUM, before expanding...
In any case, thanks again for doing what you do and all the best during the holiday season.
PS. I'm heavy RNSIX, which is proxy to being heavy Gundlach. Let's trust that if he can forecast the impending instability in traditional fixed income holdings, he can manage us through it.

I thank you all for the various responses. I won't panic. ..... Investor, I'm already holding the lion's share of all my total stuff in a tax-deferred retirement vehicle. (Trad. or Rollover IRA.) When I bought-into DLFNX, I wanted to deliberately keep that money available without penalty for any early withdrawal. You're right, of course. And yet, I'm glad I own shares in that fund. I think I shall not play with it now... Just watch the divs. grow.

P.S. I hold it as a basic, ordinary, taxable account, not a retirement thing.

Have the WT rep contact the mutual fund trading desk which should confirm that there is no minimum in a retirement account. If that fails, ABNIX continues to be available in Firstrade retirement accounts for a $500 minimum.
Kevin

Reply to @ron: Ouch, on the speculation part, and a bit unfair I think, based on the case studies Berkowitz presents when taking his positions. Even the implied Heebner comparison is a stretch...who trades at frenetic speeds, if I remember correctly.
WaltJ paints the right picture.
But I certainly understand that selecting a more volatile fund, like FAIRX or FAAFX or even FOCIX, which has extraordinary yield, depends on desired investment horizon. About 6-7 years ago, I had more than 50% of my portfolio in FAIRX. Today, that honor is held by the much more steady-eddy (I trust) RNSIX, since retirement is imminent.
But I still hold Fairholme.
BTW, over the last 10 years, a solid, if not perfect, equity fund like DODGX managed to perform comparable to market. Both FAIRX and CGMFX beat, but the former did so with much less volatility and a tenth the turnover. The data:

And, if we dare go back a little further, say to 1999 (just prior to tech bubble pop), Heebner beats Berkowitz who beats Gunn...but these three active traders beat the market, as shown below. If past trends at all predict the future, I pick the blue line.

Howdy Charles,
You noted:

" I know the composition is for "near retirement, capital preservation and to stay ahead of inflation creep," but surprised to see it virtually devoid of equity."

>>>>>The M* breakdown of the portfolio "thinks" the mix is about 1.9% equity. There are times, it appears, when M* can't quite determine a full accurate reading. We are okay with this and are pleased that we are able to have a view of the mix from their angle. We do have some equity slant from FAGIX, which at times may run as high as 20% equity holdings and currently reads about 8%. FRIFX is a conservative real estate fund and generally holds about a 40% equity/60% bond mix. LSBDX may hold up to about 20% equities. The HY bond funds are generally cousins to equity as related to market moves. For 2012, an ongoing review has shown our HY funds are currently close to returns with the S&P 500 indexes. This, of course, has varied throughout the year, too. As the markets have tossed and turned for 2012, one week will find support from the above funds noted; while another week finds support from the bond funds more tilted towards the investment grade sectors. A slow and sideways portfolio mix attempting to generate some continued capital appreciation from bond pricing, while throwing off yield; generally paid and reinvested monthly.

"Maybe it really is a reluctant bull, if not "A Bull Market In Fear."

>>>>> We were not a house of bonds prior to June, 2008; with only about 10% in bonds at that time. We have held up to 30% in equity at various times beginning in 2009 and through 2012. As to the "reluctant bull"; our portfolio feels like an investment orphan at times, as so much news is oriented towards owning equity to move forward with one's portfolio growth. We do not disagree with this notion; and must be aware of which equity sectors may benefit going forward, whether broad equity markets remain "sideways" or not. Not unlike bond sectors, there are always equity sectors that may remain more favorable than others for any number of reasons. This is what all of we investors are attempting to discover, eh? I can not imagine that our portfolio will remain naked in the equity sector going forward, regardless of retirement. We will have to continue to obtain capital appreciation from one area or another, or both. However, we feel at this time; "that this time is different" and although historical investment charts are of benefit to study, this is not my parent's, nor my generation's (age 65) market place. Things have changed and sorting a forward investment path has become more difficult; in my/our opinion.

"I used to think that owning an equity share was owning a piece of a company. Has that changed? Gives me pause to think nobody wants to own companies anymore, just their debt. Has owning debt become a proxy for owning the company?"

>>>>>I don't think this has changed. Equity is still owning a part of a company; and a company's debt (bond issues) is money one is lending to a company, for hopefully; a well thought plan. Utimately, one could hold both areas for a given company with buying some of their equity, as well as some of their bonds, too. I suppose this becomes a "balanced" portfolio. I will not disagree, as has been noted here in discussion, and with linked articles; that too many folks likely do not understand the full implication of market forces that can throw their bond holdings into a negative direction. Our house is aware of this; but it will be the timing and/or vision of when a more permanent trend has begun that could cause losses in some bond holdings. What the retiring boomer generation (reportedly 10,000/day) is going to do with their monies will likely have a fairly large impact on some investment areas for the next 20 years.
As to equity and bonds, and an example; we try to view these investment areas in this fashion. We and 1,000 friends in our area have pooled our money; and are well aware of the quality or lack of, the surrounding 25 mile radius of homes for sale. We feel we know the neighborhoods and trends affecting these areas. We decide that some of the homes are worth an outright purchase (equity, growth and/or value) for future monetary growth; while other homes do not meet this criteria; we do know folks who are willing and able to do what is needed to get homes in more marginal areas into shape for sale or rent. These folks have the qualifications and desire, but do not have ready access to, or the needed money. We lend (bonds, some will be investment grade and some will be junk status) these folks some of our money for a price.....interest rate/yield. In both cases, we hope all of the this works out to our monetary benefit, with a psuedo balanced investment portfolio.
Lastly, and something we need to continue to watch; is the ongoing bond flood. As Robin might say to Batman, "Holy crap, Batman; the ECB is issuing bonds to buy bonds !!!". Well, this is taking place in too many places (central banks/govt's) around the globe; including this country. I don't like this at all. There is a limit, eh? The whole thing is like a realtime and ongoing story from a "Twilight Zone" mini-series.
It would be much easier to pursue this with a real conversation at a table at the "mutual fund cafe". Hopefully, I was able to place some of the thinking properly, into the words here.
Take care,
Catch

Reply to @Charles: Howdy. I guess I'm thinking less of asset class performance here than of investor behavior. It looks like this might be a one fund portfolio or a few funds with relatively light supervision. And while the recipients are young, the time horizon isn't huge. Alpha hopes to bequeath these no later than the time that (the eldest?) recipients reaches 25. While WAMVX or SFGIX (which I mention just because they represent my riskier non-retirement investments) might well be splendid choices for reasonably seasoned investors, for a small slice of a larger portfolio or for a black-box retirement portfolio with 20 years to grow, I was less sure of them as a grandparent's gift to a 20-something, "to do with as they like" (retire student debt, buy a home, start a family?).
But what do you do if the portfolio is small and likely to be static? I guess my first impulse is risk management. I keep thinking about the T Rowe Price research on asset allocation and risk. If you go from a conservative portfolio with 20% stock exposure to a balanced portfolio with 60%, two things happen: (1) your average annual returns increase by 1.9% from 7.4 to 9.3% and (2) your volatility explodes - you quadruple the number of losing years you'd expect to experience, you deepen your average loss in a losing year from 0.5% to 6.8% and you double your standard deviation. (That original study was 2004, of the period 1955-2003.)
And so that was the balance: if I thought I could get 7.4% and feel like my legacy (or my inheritance, depend on your perspective) was pretty secure, I'd take it.
As ever,
David

dear alpha... for children ages 1-12 to hold? i would go with at least 80% equity. the cheapest kind. something like vanguard total market. i like many funds offered, but they are for us -- those well over 40 and those near or at retirement age. you don't invest like that for children, especially since you mentioned that the educational accounts are separately provided for. being in the industry that offers many asset allocation, alternative and income funds -- those in vogue currently -- i see the asset management professionals are piling into the cheapest equity funds for their children's/grandchildren's accounts. do as they do, not as they say.

Thanks Catch. A good year indeed.
Think this is first time I really looked at the details, sad to say.
I know the composition is for "near retirement, capital preservation and to stay ahead of inflation creep," but surprised to see it virtually devoid of equity.
Maybe it really is a reluctant bull, if not "A Bull Market In Fear."
I used to think that owning an equity share was owning a piece of a company. Has that changed? Gives me pause to think nobody wants to own companies anymore, just their debt. Has owning debt become a proxy for owning the company?
In any case, very much appreciate you sharing results for your boat each week. I will be following more closely going forward, and hoping always it is going full steam.

Howdy,
A thank you to all who post the links, start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week.
NOTE: For those who visit MFO, this portfolio is designed for near retirement, capital preservation and to stay ahead of inflation creep. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around.....That's more like it, eh? Good old November has been an interesting investment month. U.S. equites, broadly noting; started the month a bit negative and had two weeks of a -1.5% and -2.2% and bounced up +3.8% last week. Our broad based bond mix has been stuck between +11.72 and +11.51% YTD for the month. I will suppose that an equity rally through year end could add 10% to equities and shave no more than 1% from our bond mix. The "fiscal cliff" thingy will likely find a blended fix; but I don't have a clue as to the blend; nor the ramifications upon investment sectors. Some U.S. companies have issued special distributions to allow investors an opportunity to perhaps obtain a lower tax rate for 2012 monies, versus potential rate changes for 2013. I am sure many companies still remain in stall mode relative to capital spending plans, too. All and all, quite a mess of unknowns remain. "That's more like it", should place the very best of traders and machine trades into the money round; as both may thrive from volatility. We continue to watch the housing/construction sector; which has already had a good yearly run. No more time remains on my personal clock, at this time; finding a short report.
The data/numbers below have been updated.
As to sector rotations below (Fidelity funds); for the past week: (Note: any given fund in any of these sectors will have varing degrees of performance based upon where the manager(s) choose to be invested and will not directly reflect upon your particular fund holdings from other vendors.) Sidenote: The average weekly return of 200 combined Fidelity retail funds across all sectors (week avg = + 2.4%, YTD +11.68%).
--- U.S. equity + 3.0% through + 4.9%, week avg. = + 3 .8% YTD = + 14.5%
--- Int'l equity + .8% through + 5.9%, week avg. = + 3.5% YTD = + 13.6%
--- Select eq. sectors - .05% through + 1.3%, week avg. = + 3.8% YTD = + 14.1%
--- U.S./Int'l bonds - 1.63% through + .68%, week avg. = - .32% YTD = + 3.76%
--- HY bonds + .10% through + .86%, week avg. = + .44% YTD = + 11.6%
A Decent Overview, M* 1 Month through 5 Year, Multiple Indexes
You may consider our portfolio to be quite boring, but you may be assured that it moves and bends each and every day; from forces beyond our control.
I have added a few blips related to our portfolio and market observations at the below SELLs/BUYs and Portfolio Thoughts.
SELLs/BUYs THIS PAST WEEK: = NONE.

Portfolio Thoughts:
Our holdings had a + .06 % move this past week. We'll continue to watch; but do not have plans at this time, to enter into equity areas.
b> Still plodding along, and we will retain the below write from previous weeks; as what we are watching, still applies.
--- commodity pricing, especially the energy and base materials areas; copper and related.
--- the $US broad basket value, and in particular against the Euro and Aussie dollar (EU zone and China/Asia uncertainties).
--- price directions of U.S. treasury's, German bunds, U.K. gilts, Japanese bonds; and continued monitoring of Spanish/Italian bond pricing/yield.
--- what we are watching to help understand the money flows: SHY, IEF, TLT, TIPZ, STPZ, LTPZ, LQD, EMB, HYG, IWM, IYT & VWO; all of which offer insights reflected from the big traders as to the quality/risk, or lack of quality/risk; in various equity/bond sectors.
The Funds Boat is at anchor, riding in the small waves, watching the weather and behind the breakwater barrier. To the high praise of MFO and the members, it is very difficult to find a topic to note here that has not been placed into the discussion boards. Excellence, as usual.
I have retained the following links for those who may choose to do their own holdings comparison against the fund types noted.
The first two links to Bloomberg are for their list of balanced/flexible funds; although I don't always agree with the placement of fund styles in their categories.
Bloomberg Balanced
Bloomberg Flexible
These next two links are for conservative and moderate fund leaders YTD, per MSN.
Conservative Allocation
Moderate Allocation
A reflection upon the links above. We attempt to establish a "benchmark" for our portfolio to help us "see" how our funds are performing. Aside from viewing many funds within the balanced/flexible funds rankings (the above links), a quick and dirty group of 5 funds (below) we watch for psuedo benchmarking are the following:
***Note: these week/YTD's per M*
VWINX .... + .91% week, YTD = + 9.42%
PRPFX .... + 1.86% week, YTD = + 6.96%
SIRRX ..... + .21% week, YTD = + 6.73%
TRRFX .... + 1.57% week, YTD = + 9.66%
VTENX ... + 1.33% week, YTD = + 8.74%
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh? Hey, I probably forgot something; and hopefully the words make some sense. Comments and questions always welcomed.
Good fortune to you, yours and the investments.
Take care,
Catch
---Below is what M* x-ray has attempted to sort for our portfolio, as of Nov. 1, 2012 ---
From what I find, M* has a difficult time sorting out the holdings with bond funds.
U.S./Foreign Stocks 1.9%
Bonds 93.9% ***
Other 4.2%
Not Classified 0.00%
Avg yield = 3.99%
Avg expense = .57%
***about 18% of the bond total are high yield category (equity related cousins)
---This % listing is kinda generic, by fund "name"; which doesn't always imply the holdings, eh?
-Investment grade bond funds 28.2%
-Diversified bond funds 22.4%
-HY/HI bond funds 14.5%
-Total bond funds 32.4%
-Foreign EM/debt bond funds .6%
-U.S./Int'l equity/speciality funds 1.9%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX.LW Fed High Income
DIHYX TransAmerica HY
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
ACITX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
LSBDX Loomis Sayles
PONDX Pimco Income fund (steroid version)
PLDDX Pimco Low Duration (domestic/foreign)
---Speciality Funds (sectors or mixed allocation)
FRIFX Fidelity Real Estate Income (bond/equity mix)
---Equity-Domestic/Foreign
NONE outright, with the exception of equities held inside some of the above funds.

Hi Scott: "Hussman eventually be proven right" - Depends on your definition of right and how we measure that. HSGFX must be close to 15 years old now. If it's able to capture - say 70% of the return of S&P, Wilshire 5000, or other widely followed indexes over that span with its inherent lower volatility, than maybe that would equal being right. Am highly skeptical that will be the case. Fifteen years seems to me a fair measure - being equal to about half the time a typical wage earner might be expected to contribute to his or her retirement plan.
Re the "Dutch Boy" - Always enjoyed Hussman's writings (aside from some of the technical ****). I think both he and Bill Gross do a real nice job here. In this case, we might apply a couple other allegories to characterize his recent investment calls: "Boy who cried wolf" & "The sky is falling" come to mind.
"I'm surprised to hear him acknowledge printing billions ..." Yep - agree with you. But isn't inflation pretty much the natural course of paper (fiat) currencies throughout history - with few exceptions (perhaps modern day Japan?). If you have to bet on one long term trend, the odds favor inflation.
Re the market: Agree - caution is advised. - If the numbers hold, 2012 looks to be a pretty decent year for U.S indexes - especially if compared to current yields on cash or short term paper.

Howdy,
A thank you to all who post the links, start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week.
NOTE: For those who visit MFO, this portfolio is designed for near retirement, capital preservation and to stay ahead of inflation creep. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around.....Short on time this week. Numbers have been updated to current data. Noting the obvious, many equity sectors were weak again this past week, with the exception of some Japanese areas; mostly due to weaker Yen currency. This situation may not remain for any longer term trend. Although one could presume that most bond sectors would have moved positive for the week, with the negative action in equities; only Friday had some broad sector positives in bonds. Exceptions for some of the week were muni's and longer term government issues. One may suspect a longer upward play in muni's, if enough money moves to this area to "avoid" higher investment area tax rates. Generally speaking, most active HY bond funds had losses between .20-.60%, indicating some reflection towards the weak equity sectors. Overall, most bond sectors performed their duty last week in helping to preserve capital. Too many investment areas remain a coin toss, eh? Going towards the yearend and the unknowns; "luck" of where one's portfolio is positioned will likely be the "main" guiding factor for shaping the next six weeks investment returns to modify one's final YTD returns. We're at the investment casino, at this time, in my opinion; whether one recalls buying the bus ticket or not.
The data/numbers below have been updated.
As to sector rotations below (Fidelity funds); for the past week: (Note: any given fund in any of these sectors will have varing degrees of performance based upon where the manager(s) choose to be invested and will not directly reflect upon your particular fund holdings from other vendors.) Sidenote: The average weekly return of 200 combined Fidelity retail funds across all sectors (week avg = - 1.12%, YTD + 9.04%).
--- U.S. equity - 2.6% through - .80%, week avg. = - 1 .5% YTD = + 10.3%
--- Int'l equity - 2.5% through + 1.2%, week avg. = - 1 .7% YTD = + 9.7%
--- Select eq. sectors - 7.7% through + 1.3%, week avg. = - 1.7% YTD = + 9.9%
--- U.S./Int'l bonds - .40% through + .22%, week avg. = - .03% YTD = + 4.1%
--- HY bonds - .86% through - .20%, week avg. = - .51% YTD = + 11%
A Decent Overview, M* 1 Month through 5 Year, Multiple Indexes
You may consider our portfolio to be quite boring, but you may be assured that it moves and bends each and every day; from forces beyond our control.
I have added a few blips related to our portfolio and market observations at the below SELLs/BUYs and Portfolio Thoughts.
SELLs/BUYs THIS PAST WEEK: = NONE.

Portfolio Thoughts:
Our holdings had a - .11 % move this past week. We'll continue to watch; but do not have plans at this time, to enter into equity areas.
b> Still plodding along, and we will retain the below write from previous weeks; as what we are watching, still applies.
--- commodity pricing, especially the energy and base materials areas; copper and related.
--- the $US broad basket value, and in particular against the Euro and Aussie dollar (EU zone and China/Asia uncertainties).
--- price directions of U.S. treasury's, German bunds, U.K. gilts, Japanese bonds; and continued monitoring of Spanish/Italian bond pricing/yield.
--- what we are watching to help understand the money flows: SHY, IEF, TLT, TIPZ, STPZ, LTPZ, LQD, EMB, HYG, IWM, IYT & VWO; all of which offer insights reflected from the big traders as to the quality/risk, or lack of quality/risk; in various equity/bond sectors.
The Funds Boat is at anchor, riding in the small waves, watching the weather and behind the breakwater barrier. To the high praise of MFO and the members, it is very difficult to find a topic to note here that has not been placed into the discussion boards. Excellence, as usual.
I have retained the following links for those who may choose to do their own holdings comparison against the fund types noted.
The first two links to Bloomberg are for their list of balanced/flexible funds; although I don't always agree with the placement of fund styles in their categories.
Bloomberg Balanced
Bloomberg Flexible
These next two links are for conservative and moderate fund leaders YTD, per MSN.
Conservative Allocation
Moderate Allocation
A reflection upon the links above. We attempt to establish a "benchmark" for our portfolio to help us "see" how our funds are performing. Aside from viewing many funds within the balanced/flexible funds rankings (the above links), a quick and dirty group of 5 funds (below) we watch for psuedo benchmarking are the following:
***Note: these week/YTD's per M*
VWINX .... - .57% week, YTD = + 8.42%
PRPFX .... - .78% week, YTD = + 5.01%
SIRRX ..... + .04% week, YTD = + 6.64%
TRRFX .... - .74% week, YTD = + 7.96%
VTENX ... - .62% week, YTD = + 7.31%
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh? Hey, I probably forgot something; and hopefully the words make some sense. Comments and questions always welcomed.
Good fortune to you, yours and the investments.
Take care,
Catch
---Below is what M* x-ray has attempted to sort for our portfolio, as of Nov. 1, 2012 ---
From what I find, M* has a difficult time sorting out the holdings with bond funds.
U.S./Foreign Stocks 1.9%
Bonds 93.9% ***
Other 4.2%
Not Classified 0.00%
Avg yield = 3.99%
Avg expense = .57%
***about 18% of the bond total are high yield category (equity related cousins)
---This % listing is kinda generic, by fund "name"; which doesn't always imply the holdings, eh?
-Investment grade bond funds 28.2%
-Diversified bond funds 22.4%
-HY/HI bond funds 14.5%
-Total bond funds 32.4%
-Foreign EM/debt bond funds .6%
-U.S./Int'l equity/speciality funds 1.9%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX.LW Fed High Income
DIHYX TransAmerica HY
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
ACITX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
LSBDX Loomis Sayles
PONDX Pimco Income fund (steroid version)
PLDDX Pimco Low Duration (domestic/foreign)
---Speciality Funds (sectors or mixed allocation)
FRIFX Fidelity Real Estate Income (bond/equity mix)
---Equity-Domestic/Foreign
NONE outright, with the exception of equities held inside some of the above funds.

Thanks Ted,
An important topic but, I have a couple of criticisms on such as study.
The article suggest using moderate allocation (balanced) funds instead of trendy retirement funds. The article doesn't suggest any balanced funds so it doesn't provide any data to compare between these two strategies. I wish they had selected a few balanced funds to compare the three retirement funds against.
I will use one of the oldest mutual funds in existence, VWELX. It is described as a 60/40 moderate allocation fund. Since this fund has been in existence for over 80 years a research study, such as this, could have created (60) rolling 20 year results. This would be great data to compare these retirement funds against. But, the success of a retirement fund should really be looked at over the entire retiree's investment time horizon...which would be closer to 40 years.
Let's assume I use a balance fund such as Wellington. If I invested in VWELX in 1929 I woud have experience a 62% loss over the first few years...sounds familiar to 2008? More importantly, it remained a negative investment for most of the first 13 years...again, sound familiar? Between 1932 - 1936 (just like 2009 - 2013) it made back what it had lost but, another big loss kept it negative until 1942...Is this where we are now?
By 1949 this fund would have turned the initial $10,000 investment into $22,000...so it roughly doubled over this 20 year period...I would not have wanted to time my retirement during this 20 year period.
If we live during these same depressionary times, neither retirement nor managed balance funds will be the answer.
Here's Wellington Fund out of the gate(1929) and graphed over the first 20 years of its struggling existence:

I think it's too soon to tell
I am still DCA into the tsp /401k...still 80%stocks 20%bonds
just bought a water bond - cusip 03040WAF2 from schwab: ytm ~ > 7.5%, not too bad but the call could be too long [hopefully I wont die before it mature LOL]
It's interesting, one of my colleague at work about to retire in couple of yrs, she is not a savvy investor but she made a brilliant move, she changed to 80% cash/cd/bonds and limited stocks at 20% in her tsp. Just like rono did prior to the crash. I think it was very wise. probably cannot afford another crash if you are near retirement.
too many variables out there -
fiscal cliff
EU recessions
middle east w/ Jewish state/Hamas/Iran
oil factors
obama factor/obamacare
printing more money from gov EU and US trying to keep afloat
china going down/? new crash
shall we say buy more gold???

I covered my nasdaq short yesterday. This is not saying that I do not think that the market could not go down further. It absolutely could, and would not surprise me if it did. However, it isn't likely going straight down and technically, the market was oversold.
Apple is still + YTD, but I wonder a bit if it won't wind up being a bigger turn-off to retail than Facebook. Facebook at least largely went in one direction from day one. Apple is the most widely held hedge fund stock and likely the most widely held mutual fund and retail stock. It's -25% or so from the high, but I wonder how many bought higher than this with all the talk of shares going to a thou. Given that it's the most widely held stock, selling seems to just snowball.
This isn't anything against Apple or Apple products, but a smartphone and tablet market that may start to turn off consumers who are faced with a new model every 3-6 months that offers some slight-to-moderate tweaks. Not saying that smartphones and tablet use won't continue to be big either, but that I think over the next few years, people may not feel the need to buy new models as often and maybe not nearly as often. Finally, not saying that Apple is going anywhere, either, but that the story needs something Inew beyond a new Ipad and Iphone and Ipod.
Sears down 18% (20% at one point, I think.)
I added lightly to Marketfield and a couple of other funds yesterday. I also am looking at boring single names (consumer staples, etc), preferably with a considerable emerging market audience. I do continue to like Canadian energy co's, as well as ag names.
MLPs are certainly more reasonable after all the worries about the fiscal cliff and tax policy. Many are rebounding considerably today. The fiscal cliff issue will be pushed yet further out in the future, like everything else, and the problems will grow.
Overall, I think one can buy a little here, but I think there will be more opportunities before year-end. I think if one does invest - especially given that this board is largely near retirement age - it should be with the view that (I think) volatility like what's been seen in recent weeks could absolutely continue for a while.

FYI:
Regards,
Ted
http://money.usnews.com/money/personal-finance/mutual-funds/articles/2012/11/13/need-income-from-your-retirement-funds-try-these

Howdy BannedfromBogleheads,
You wrote:

"And on the basis of my best understanding of prudent investment strategy I have to admit that volatility aversion does certainly seem to be an indication of stupidity because all the investment theory I know says that volatility is rewarded...which is, unfortunately, commonly misinterpreted as the impossible contradiction that "risk is rewarded"; Risk is not rewarded (it can't be because, as you noted, risk is defined from loss which is the opposite of reward and, thus, it's logically impossible for an investment to simultaneously tend towards both risk and reward), volatility is rewarded and so the key to successful investing is to minimize risk while maximizing volatility."

I am in a position of helping a friend with some retirement decisions; and attempting to define your above thoughts as they might apply to his monetary investments during his retirement.
He is being early retired due to the elimination of his current position; along with other co-workers.
He just turned age 65, has no debt, owes a small house that suits his needs and has always been prudent with his spending. He is divorced and his former wife has signed off against his small pension, so that he will receive his full amount. He was not part of a union for his work; so he will need to pay for supplemental insurance plans to offset some fees within Medicare A and B, as well as provide his own prescription medication insurance, which will total about $260/month.
What he will have going forward:
--- $1,000/month gross pension
--- $1,800/month net Social Security (if he started today)
--- About $200,000 total in IRA accounts (includes 401k rollover)
His monthly pension will be totally consumed, and more, from supplemental health insurance, house & auto insurance, utilities, food, auto gas, etc. He will also attempt to maintain an emergency cash acct. at his credit union.
He, of course; prefers to not withdraw any monies from the IRA account until the required minimum distributions after age 70.5 years.
Based upon your statement above, what 4-6 mutual funds could he use to provide capital preservation and also have some captial appreciation of his IRA funds?
Regards,
Catch

Reply to @BannedfromBogleheads: The volatility you refer is not of cash but the check for which you are seeking cash.
In fact, it is not even volatility. It is liquidity risk. Yet, we are not concerned that much as we can delay 1 day easility (not open ended - so it can be planned) and cash full value. On the other hand, with a volatile mutual fund there is no certainty regarding the when you can get the value you anticipate.
Most people do have some flexibility in payments when their income shows some variability. They can put off some spending later, etc. But, they can put off so much and if it turns out they cannot delay any more, the withdrawal from portfolio when it is down can have devastating effect because the amount you draw today will not get that huge bounce later. If you give up some upside for significant reduction of downside, you obtain more flexibility and you no longer depend on huge upside to present itself one day.
Now if you have a large enough portfolio that you can segregate some and guarantee your retirement needs, you may have the luxury to invest in such high volatility investments for the rest. Most of us are not that lucky. Similar situation exist young people with a stable work. They do not depend on the portfolio for sustaining their life yet. Everybody else should be more prudent. Even young people may have problem with large variability. Most people I have seen panic and sell at the worst possible time and never experience that huge upside. This is called "I can't stand it anymore" timing. So, it is easy to make claims and it is much harder to show mental fortitude even when you have theoretical capacity. In practice, most people is better served with an asset allocation, balanced type allocation from early investing through retirement. You don't have to follow a glide path and you would be OK.
I just don't have to hit home run or strikeouts. I think hitting singles, getting in the base is more or less consistent is enough or more productive. Did you read money all or watch the movie?
Most people here do understand this. You are welcome to disagree.