If she is looking to invest in just one fund to start out with, I would go with one of their retirement target date funds. Their all-in-one retirement funds are some of the best out there.
One of my favorite funds I use from TRP is the New Era PRNEX fund. It holds natural resource and energy stocks. Like most of their funds, it's a good steady-eddie fund if you want to be in this sector. Less volatile than most.

A New Winner on the Mutual Fund Charts
http://www.businessweek.com/magazine/content/11_18/b4226047177881.htm
top 5 franklin templeton funds to buy now
http://www.investorplace.com/38034/franklin-templeton-401k-mutual-funds-to-buy/
the secret to smart investing
http://money.usnews.com/money/blogs/On-Retirement/2011/04/21/the-secret-to-smart-investing-
several huge dividend payout stocks [ot]
http://www.fool.com/investing/general/2011/04/19/one-huge-dividend-play.aspx
Cali Muni Market commentary [ot]
http://www.leisurecapital.net/links/newsletters/03-2011.pdf
Bond Investors Bound for Shock When Rates Surge, Cohen Says
http://www.businessweek.com/news/2011-04-21/bond-investors-bound-for-shock-when-rates-surge-cohen-says.html
are small cap etf overheating
http://community.nasdaq.com/News/2011-04/are-smallcap-etfs-overheating.aspx?storyid=71801
the power of passive investing
http://www.indexuniverse.com/publications/journalofindexes/joi-articles/9130-the-power-of-passive-investing.html?tmpl=component&print=1&layout=default&page=
investors cashing in on higher food prices
http://www.etfchannel.com/article/201104/investors-cashing-in-on-higher-food-prices-de-mon-pot-adm-moo-jja-dba-fud-food041911.htm/
Don't Let Hidden Costs Gobble Up Your Return
http://news.morningstar.com/articlenet/article.aspx?id=377289
an etf portfolio for cheapskates
http://money.msn.com/exchange-traded-fund/an-etf-portfolio-for-cheapskates-moneyshow.aspx
muni bonds that won't blow up
http://www.wibw.com/nationalnews/headlines/Muni_bonds_that_wont_blow_up__120099699.html
How to Buy Silver At a Bargain Price Using Options
http://www.marketoracle.co.uk/Article27641.html
S&P Downgrade Shows U.S. Debt Crisis Could Have Dire Consequences
http://moneymorning.com/2011/04/19/sp-downgrade-shows-u-s-debt-crisis-could-have-dire-consequences/
defaults unlikely
http://www.bondbuyer.com/issues/120_75/fed-banks-defaults-unlikely-1025733-1.html
fairholme fund weighed down by poorly performing financial stocks
http://www.gurufocus.com/news/129199/fairholme-fund-weighed-down-by-poorly-performing-financial-stocks

Hi Burt,
ACINX appears to be available for $1K minimum in retirement accounts at Wellstrade according to a test trade I just made. SGOIX is available for $1K minimum in retirement accounts at Thinkorswim, according to recent reports on the M* forums. And a M* forum member reportedly made a $10K purchase of SGOIX recently in a WT retirement account using a WT rep.
I would own only one of these funds, and I would definitely prefer SGOIX due to better performance over the past 3-, 5-, and 10-year periods with much lower standard deviations over these periods.
Kevin

Hi rmt,
YES, but the limitation of $5K per year and foregoing one's part of a retirement plan would not be my personal preference. One may, if I recall the IRS info properly is that a 529 annual limit is $13,000K per year.
Your point, however; is well taken and good info.
Take care,
Catch

Congratulations on your new family member. I salute you for looking ahead to college savings. I recommend:
1) You think of this investment task as initiating construction of a portfolio. Choice of fund should be subordinated to a plan for asset-allocation. See savingsforcollege.com for an overview of how different 529 plans approach the idea of age-based allocation. I suggest this not to steer you toward any particular model, but just as a prompt for your own thinking about what sort of allocation you want to choose now, and how you might like to change it over time.
2) Although saving for college is similar in some respects to saving for retirement, I think it is important to remember the differences (particularly if you choose to adapt a target date retirement fund for this purpose). To me, the major differences are that the timeframe for college savings is generally shorter, and then the spending period is much shorter. Both differences imply being more conservative with education money than you would be with retirement money.
3) I assume that you chose the Roth IRA approach over the 529 approach because you preferred flexibility about the ultimate use of the money, and about choice of investment vehicles. I have twice had to reclassify 529 money (once for unpleasant, and later for pleasant reasons), I believe this to be a canny choice. While it seems appealing to keep money in separate bins for separate purposes, many unexpected things can happen in 18 years. Unexpected events tend to occur life-wide; they don't respect the categories for money that our plans depend upon. It is humbling enough to have to change plans without also having to pay penalties.
Best of luck.
gfb

Hi, geis!
Remember that this will be a first fund, not your final portfolio. Mr. Yacktman, blessed in mind and apprehension, is about 70 now and while there are a few 88-year-old fund managers . . .
Over time, it would be wise to shift your asset allocation toward short-term investments so there's less risk of a catastrophe when your child's in high school. Three ways to do that:
1. monitor the allocation and shift it yourself (maximum control, maximum prospect for forgetting to)
2. invest in a 529 with an age-option. Iowa, for example, has an age-track that invests in a changing mix of Vanguard index funds. Dull but predictable.
3. invest in a retirement date fund, where the "retirement" date is about the same as the start date for college (2025 or 2030, I'd guess). These funds are broadly diversified, but become more conservative every few years. My own preference would be for one of the T. Rowe Price Retirement funds. Retirement 2025 (TRRHX) is 60% US stocks, 20% international (including a sliver of emerging markets), 20% income (including slivers of commodities, junk, e.m. and international bonds).
For what it's worth,
David

Congrats...some thoughts:
1. If you & your wife have an employer who provides a match to your 401k you double each dollar invested...do this first.
2. After you max this out, both of you should contribute to your ROTH.
3. Finally, its a toss up whether you should fund a taxable accounts (think emergency fund, rental property, land, art, collectibles) in your names or a college plan in your children's name. My experience is that your family will be better served if you first provide for your retirement...not college. College will take care of itself with grants, scholarships, work study and student loans. After all of these student based opportunities are realized you may very well assist your kids with your money. But, when you designate your money early on in their names (529 Plans) formulas like (FAFSA) change dramatically. You actually hinder your son or daughter chances at these need based college financial programs because you sacrificed your retirement plan. Later, will they resent the fact that you are broke in old age and you need their help? The best gift we can give our kids is often our own financial health.

Two Thoughts:
(1) Yacktman and most others allow you to establish monthly contribution plans without putting any money up front. Great way to start investing-almost as "painless" as payroll deduction. You are also allowed to change the amount at any time or stop completely once you reach the normal minimum. Linked Yacktman's IRA application (see section #5). Not trying to push you to Yacktman because I know absolutely nothing about them. Just wanted to show how these AIPs work.
http://www.yacktman.com/pdfs/iraapp.pdf
(2) Recommend you try to keep this money separate from your retirement funds, as 00BY mentioned, and also that you devise some form of graduated allocation model for the college money so as not to have it all in the stock market as college begins. Example: you could allocate 100% to an equity fund during the first year. Than move 5% of the total to a short-term bond fund, laddered CDs or other low risk product at the beginning of each new year. When the child turns 11, you'd have half the money safeguarded from the gyrations of the stock market. At 16, you'd have 75% so positioned. I considered target date retirement funds. However, these assume you are going to live an additional 30 years or so after their stated retirement date. Some still hold 50% in equities at that time. Wouldn't advise using them for this purpose.

Howdy,
First, congratulations to both of you; and to looking forward for your newborn.
ROTH IRA's, a few things to consider:
---A ROTH IRA will be limited to $5,000/year and less if your income is more than $105K/year.
---Your household will be subject to a 10% early withdrawal penalty (as you or your wife will not be age 59.5) and regular taxation of any monies drawn for your child's use for educational purposes. FED and STATE.....
---You will not have your "own" ROTH for retirement
529 college accounts:
---negative....you may only reallocate the invested monies once per calendar year. This is subject to change.
---positives: 529's generally allow (varies state to state) to investment up to $325K into the account, at which time no further investments may be made, BUT...anyone may place the monies into the account......so, if you can convince a total stranger to fund the 529; NO problem with where the money comes from. Relatives may give to you or the fund directly for bdays and such for your child.
---you may qualify for state tax breaks using a 529 from your home state.
*****although the ability to move money around in a 529 is restricted to the once a year thingy; most 529's have enough fund choices to create a balanced "fund of funds". Also, one is not restricted to using a 529 from your own state and if you find 5 different 529's that you like from 5 different states, you may open a 529 with each state.
GOOGLE the words: 529 "and the name of a particular state" to find plan info. Also, Savingforcollege.com has some features to review that do not require a subscription.
NOTE: you will find "broker" sold 529 plans. I would avoid the extra cost of this arrangement; unless you are not comfortable with deciding the investment allocations.
This link regards the current IRA rules and regs.
http://www.irs.gov/publications/p590/index.html
Everything is subject to change and I may have forgotten something; but this will give you something else to chew upon.
Take care,
Catch

My note is that I'd actually suggest the more aggressive form of inflation protection of Pimco Commodity RR (PCRDX for D shares, I think), given the age and given the long-term reinvestment of the rather large distributions of the fund has had a history of throwing off. Not to say that Permanent Portfolio isn't great, but I'd recommend it for those closer to retirement.

Congratulations on your new arrival!
Have you considered using a 529 account for baby's college education. ROTH IRA will give you more flexibility (i.e. you don't have to use it for college, you can also use it for retirement). But I do prefer to keep retirement separate from kids college if you can swing it.
Do you already have a brokerage account (fidelity, charles schwab, etc)? Which one? I'm trying to get an idea of which funds may be available to you. Most discount online brokers have some low minimum investment mutual funds that you can choose from for an IRA. But there are also some funds that still require $2,500 or more as an initial investment.
DplhcOracl gave some good options. I will add a few more:
FPACX FPA Crescent
GLRBX James Balanced Golden Rainbow
EXWAX Manning & Napier World Opportunities
ARTGX Artisan Global Value Inv
A few questions that might help us to help you. Do you want a balanced fund with stocks and bonds? Domestic or international fund? Risky or conservative? In my recommendations, I tried to stick with funds that could be considered as a core part of your portfolio.

http://www.sec.gov/Archives/edgar/data/1217286/000119312511100451/d497.htm
Supplement dated April 18, 2011 to the Prospectuses dated February 28, 2011
Effective May 2, 2011, the Highbridge Dynamic Commodities Strategy Fund (the “Fund”) will be publicly offered on a limited basis. Investors will not be eligible to purchase shares of the Fund, except as described below:
Shareholders of record of the Fund as of May 2, 2011 are able to continue to purchase additional shares in their existing Fund accounts either through J.P. Morgan Funds Services or a Financial Intermediary and may continue to reinvest dividends or capital gains distributions from shares owned in such Fund;
Shareholders of record of the Fund as of May 2, 2011 are able to add to their accounts through exchanges from other J.P. Morgan Funds;
Group employer retirement plans including 401(k), 403(b) and 457 plans (and their successor plans), which have the Fund available to participants on or before April 18, 2011, may continue to open Fund accounts for new participants and purchase additional shares in existing participant accounts. Group employer retirement plans including 401(k), 403(b) and 457 plans (and their successor plans) may also establish new accounts with the Fund, provided the group employer retirement plan has been accepted for investment by the Fund and its distributor on or before May 2, 2011. Additionally, certain fee-based advisory programs may purchase shares of the Fund for new and existing accounts. These particular programs were accepted for continued investment by the Fund and its distributor on or before May 2, 2011;
Ÿ Current and future JPMorgan SmartRetirement Funds and such other J.P. Morgan Funds as are designated by the J.P. Morgan Funds Board of Trustees will be able to purchase shares of the Fund.
If all shares of the Fund in an existing shareholder’s account are voluntarily redeemed or involuntarily redeemed (due to instances when a shareholder does not meet aggregate account balance minimums or when participants in Systematic Investment Plans do not meet minimum investment requirements), then the shareholder’s account will be closed. Such former Fund shareholders will not be able to buy additional Fund shares or reopen their accounts in the Fund. The foregoing restrictions, however, do not apply to participants in eligible employer retirement plans.
If the Fund receives a purchase order directly from an investor who is not eligible to purchase shares of the Fund, after the limited offering dates outlined above, J.P. Morgan Funds Services will attempt to contact the investor to determine whether he or she would like to purchase shares of another J.P. Morgan Fund or would prefer that the investment be refunded. If J.P. Morgan Funds Services cannot contact the investor within 30 days, the entire investment will be refunded.

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
by Burton G. Malkiel
http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393081435
I recommend this book because it covers a lot of ground for beginner investor and this is 10th edition of book which even long time investors can find something for themselves. I strongly believe this should be one of the first set of books an investor should read. If I had to pick only one book, I would pick this one.
All About Asset Allocation, Second Edition
by Richard Ferri
http://www.amazon.com/All-About-Asset-Allocation-Second/dp/0071700781
This book covers in good detail the act of building a portfolio that incorporates different asset classes. There are many books in this category which I could recommend, but this one is easily digested by an beginning investor.
Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition
by John Bogle
http://www.amazon.com/Common-Sense-Mutual-Funds-Anniversary/dp/0470138130
This is updated version of Bogle's 1999 book. He actually left the original text in and updated data, charts and provided comments of what happened in the 10 years, what worked and what didn't. As the title indicates, it is geared towards mutual funds and mutual fund investors.
Unconventional Success: A Fundamental Approach to Personal Investment
by David F. Swensen
http://www.amazon.com/Unconventional-Success-Fundamental-Approach-Investment/dp/0743228383
This book, written by Yale Endowment Manager David Swensen, has useful discussions regarding asset classes and which ones to use in a portfolio, the conflicts of interests in the industry and some model portfolios.
Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich
by Jason Zweig
http://www.amazon.com/Your-Money-Brain-Science-Neuroeconomics/dp/0743276698
This book might help an investor avoid common behavioral mistakes in investing which most everyone (beginners and seasoned alike) fall from time to time. By understanding what happens when we feel emotions like Greed, Fear, Regret, and Confidence we might (hopefully) avoid some of the costly mistakes. The earlier an investors is aware of these behavioral shortcomings, the better.
The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines
by Christopher L. Jones
http://www.amazon.com/Intelligent-Portfolio-Practical-Investing-Financial/dp/0470228040
FinancialEngines.com is a company that Nobel Laureate William Sharpe has founded. This book explains the use of Monte-Carlo portfolio simulation techniques to determine the likelihood of reaching goals (retirement etc.) and success rate. Armed with this knowledge an investor can be better prepared for the future (adjust savings level, portfolio risk, lifestyle etc.)
Peter L. Bernstein Classics Boxed Set : Capital Ideas, Against the Gods, The Power of Gold
by Peter Bernstein
http://www.amazon.com/Peter-Bernstein-Classics-Boxed-Set/dp/0471736252
A classic from Financial Historian, late Peter Bernstein. This is probably not a beginner set. But, this 3-book set is important to understand how financial theories evolved and portfolio construction and management changed from complete ad-hoc to what it is today.
Note: Hard to pick a best investment book of all times. It is probably yet to be written.

Hank, while you are looking for tax efficient funds, keep a note that some funds' tax efficiency had been boosted due to accumulated losses. Those losses have largely gone and in 2011 more funds are likely to distribute capital gains incurred by trading. Don't be fazed when you get unexpected distributions.
Keep high distribution funds in retirement accounts and more growthy (less income) funds in taxable accounts. Look for low turnover funds or specifically tax-managed funds. If you are likely to be in high tax bracket, consider investing some of your money in muni-funds.

SGIIX and SGOIX have been purchased fairly recently by M* forum members for reasonable minimums in Thinkorswim and WT retirement accounts using online trades. Of course these windows of opportunity may close quickly.

Howdy,
Again, a thank you to all who post the links and also 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 retirement, capital preservation and to stay ahead of inflation creep; if and when it returns. 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 fund. Gains or losses are computed from actual account values.
While looking around.....PREFACE: OTC drug alert ! It appears that, as our physical bodies are dynamic, ever changing organisms; that mine is attempting to find whether it is becoming sensitive to pollen and other near springtime cooties. I started some of this write last weekend and have since been using OTC meds and a few concoctions from the wizards cabinet to eliminate a most crappy physical feeling. Today, Tuesday; i feel a bit better. I will now attempt to assemble a few words, that in the very least; are less goofy than normal.
"Farewell....." One should suspect that the word farewell and its meaning, is tempered as to the final meaning and feeling by each user of the word. There are farewells that may be permanent, those that may be transistions and those that are much less serious in nature, and may indicate a most fleeing circumstance of a short time goodbye. Here we are at MFO and have bid farewell to FA; but the farewell is a transistion, not a real goodbye; at least for me.
We also say farewell to funds from time to time; but this does not rule a permanent goodbye, perhaps a "see you later or again".
With fund investing, farewells usually indicate a need for a change for any number of reasons; of which, a few areas may be risk vs reward; or just the plain appearance of little forward direction/trend.
My personal farewells many times involve a need to down-size activities in order to regain control of the limited amount of time that our earthly clock affords each of us. I have farewelled an investment club where the others chose not to participate fully, a monthly email newsletter attempting to express governmental/poliical interconnects with investments; including basic topics of having a budget and not being one's own worse enemy with hard earned money and to giving over of some personal tasks of homeowner and auto "Mr. Fixit". I have learned much from all of these endeavors; but there are the times when one must decide to let go of certain things and focus into other areas. My most recent farewell was to our elected federal senators and representative. I have been a writer to these folks for many years and have grown tired of the "plastic" replies and find very little real thinking taking place. I noted a farewell and that a lobby of one (me) can not compete with the "K" street crowd and finally that I hoped they, their children and grandchildren all have a most qualified investment advisor; as they all need one going forward. Yes, I still will follow political events; but focus more on our local conditions.
So, FAREWELL to FA; as I transistion to MFO.
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
SELLs THIS PAST WEEK:
CASH, for purchase of below FRIFX
BUYs THIS PAST WEEK:
Fidelity Real Estate Income, FRIFX
Portfolio Thoughts:
Our holdings had a +.37% move this past week. I am sure, for whomever reads this; that you are surprised to find our mish-mash of funds have any forward movement at all. And yes, we are satisfied with our risk adjusted returns YTD. If the portfolio can pull a +10 to12% for the year; you will not hear any whining from this house. The Fidelity Real Estate Income fund added may provide another avenue of some growth and even if the fund NAV goes sideways, we may gather a 4% yield. Hey, who knows; this may be a decent return for 2011.
All of us have more than enough charts, graphs and numbers to view and ponder; to hopefully aid us in being better investors. I will note a few comments here about Bob's Mutual Fund page (link just below) and at this first page you should investigate the "definitions" link, if you are not familiar with data pages to view. Clicking upon the "fund leadership" link brings up a list of 1,000 funds. A big chunk of fund names in the bright red (not good) color or the dark green (good) color are easy to look through. One quick and dirty look I take is to find how many funds on the "leader board list" have a MO of "200" or more. I won't provide a year's worth of numbers, but a few snips: April 1, 2010 = 48, May 1, 2010 = 104, June 4, 2010 = 4, July 15, 2010 = 1, Oct 1, 2010 = 26, Oct 15, 2010 = 112, Nov 15, 2010 = 155, Jan 3, 2011 = 189 and downhill from here since......Mar 14, 2011 = 8 and through April 11 the number has been between 1 and 3. No big science here; but the MO numbers can be roughly matched to broad market reference points, too; as with VTI, SP500, etc. BIG NOTE: The funds list is a real mix of fund types, and one finds a fair number in the past month in the dark green area; which is an okay indicators. HOWEVER, in spite of a fund name; one will also find that many of the funds in "dark green/happy", regardless of name, have had more focused investments in energy and commodity sectors........and this is of no surprise to us, eh???
http://customer.wcta.net/roberty/
Anyway, take a peek; as your time permits. Perhaps you will discover an algo formula that is of the visual type, with looking !!!
OK, time for my nap.
The old Funds Boat may make 5% or 25% this year. I expect some rough waters, changing winds and opposing currents; causing the most serious attention being given to a firm hand upon the rudder control.
How our boat's cargo is doing:
Week: = +.37%
YTD = +3.11%
Reference points, week / YTD:
SP-500 "SDY" = -6% / +4.1% (SP-500,dividend inclusive etf)
Nasdaq = -.3% / +4.8%
(per Google Finance)
And the cargo is:
CASH = 15%
Mixed bond funds = 78.4%
Equity funds = 6.6%
-Investment grade bond funds 12.2%
-Diversified bond funds 18.5%
-HY/HI bond funds 28.8%
-Total bond funds 14.6%
-Foreign EM/debt bond funds 4.3%
-U.S./Int'l equity/speciality funds 6.6%
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 Fed High Income
DIHYX TransAmerica HY
DHOAX Delaware HY
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
DGCIX Delaware Corp. Bd
FBNDX Fid Invest grade
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
TEGBX Templeton Global
LSBDX Loomis Sayles
---Speciality Funds (sectors or mixed allocation)
FCVSX Fidelity Convertible Securities (bond/equity mix)
FRIRX Fidelity Real Estate Income (bond/equity mix)
FSAVX Fidelity Select Auto
FFGCX Fidelity Global Commodity
FDLSX Fidelity Select Leisure
FSAGX Fidelity Select Precious Metals
---Equity-Domestic/Foreign
CAMAX Cambiar Aggressive Value
FDVLX Fidelity Value
FSLVX Fidelity Lg. Cap Value
FLPSX Fidelity Low Price Stock

TBGVX with $4.8B in AUM has an excessively high expense ratio of 1.40%. I am not interested in this fund, regardless of their hedging stance. First Eagle Overseas (SGOIX), which is reportedly available for a reasonable minimum in retirement accounts at Thinkorswim and Wellstrade, is definitely a more attractive fund in this space.
Kevin

Howdy,
I congratulate you both on being prudent and staying with your plans. It's very easy to get giddy as so many of us did back in the '90s. I remember old Art saying, that no one ever went broke taking profits.
Simple rebalancing can avoid a lot of losses. Back in the dot.com bull, let's say your target allocation was 60/30/10 but the equity portion had appreciated to 80%. When the market puked in 00', most equities about half. This means that without rebalancing, you lost 40% whereas if you had rebalanced, you would have only lost 30%. Yeah, still a lot, but when it comes to your retirement, every bit helps.
peace,
rono

vanguard.com - email
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