From: "jIM" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Portfolio Allocation
Date: Thu, 23 Nov 2006 04:39:48 -0600
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>
> What is an optimal portfolio allocation strategy for a 21 year old?
> Different websites have markedly different strategies, but I'm looking
> for something that is mostly value oriented and makes sense.

The important issue is what are you saving for (hopefully retirement is
the answer?).  If saving for retirement in ~30-40 years, then "what
makes sense" is probably AT LEAST 75% in equities.  I am 33 and have
90% in equities.  I own some funds which have convertables and own one
foreign bond fund... but other than that, I take on the risks of
equities expecting greater returns.  There is no guarantee the
additional risk will pay off, but conventional wisdom suggests this is
the way to grow money.


>
> Here's what I have so far:
>
> DODFX - 1/7 of portfolio (Dodge and Cox International)
foreign large value

> FAIRX - 1/7 of portfolio (Fairholme Fund)
mid blend

> MFOCX - 1/7 of portfolio (Marsico Focus Fund)
large growth

> MGRIX - 1/7 (Marsico Growth Fund)
large growth

> MIOFX - 1/7 (Marsico International Opportunities Fund)
international large growth

> MXXIX - 1/7 (Marsico 21st Century Fund)
large growth

> PGVFX - 1/7 (Polaris Global Value Fund)
world stock


It appears you chose 7 funds and contribute "equally" to each.  Why?

It appears to me there are 3 large cap funds which more or less overlap
and 3 international funds which more or less overlap.  Consider some
small cap, mid cap, large cap, domestic and international to find ~5-8
fund which make sense.

For example- Domestic Large Value fund X, Domestic Large Growth fund Y,
Domestic Mid Cap fund Z, Domestic Small Cap fund AA, International
Large Cap fund BB, International small cap fund CC.  After choosing one
fund in each of these 6 categories, possibly consider a technology fund
(like QQQQ) or other ETF to use for around 2-5% of the overall
portfolio.