For the short term (5 years) I would look at alternative investments for at least 25% of your portfolio, esp higher yield and emerging. Not lowest cost, but better risk management. Here’s a list starting with the least volatile:
Alpine Ultra Short Tax Optimized Inc Inv
ATOIX
Hussman Strategic Total Return
HSTRX
Janus Flexible Bond T
JAFIX
DoubleLine Total Return Bond N
DLTNX
PIMCO Unconstrained Bond D PUBDX
DoubleLine Emerging Markets Income N
DLENX
Permanent Portfolio (lots of gold, silver)
PRPFX
Matthews Asia Dividend
MAPIX
Harbor High-Yield Bond Inv
HYFIX
For longer term I would suggest variable annuity, but the benefits and guarantees by the Prudential’s and MetLife’s of the world have been greatly reduced since 2008.
From Financial Planning (Sep 2010), “VA’s Head for a Slowdown” – “Strong compensation and the continuation of guarantees, albeit somewhat more expensive and restrictive, are clearly appealing to the independent advisor.”
Damn, I just don’t know when to keep my mouth shut, that’s why I don’t have a Ferrari like the Grammy winning poster who was screaming about the value of VA’s earlier this year.
