Model Portfolios for Short- and Intermediate-Term Goals

Plus: Data to help you decide where to index or go active. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=57609&elqTrackId=945c02a4d9d64a13a5065f65ea163743&elq=cd47eaf9a60542f291c906d74c778ac3&elqaid=57609&elqat=1&elqCampaignId=29390&elqak=8AF5A76437A1FC58E1E6F255FC34892DA625C39907A1ED40DA7818BF97A9F7120958) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] Investing for financial goals that are close at hand is a bit like putting and chipping is for golfers. It seems like it should be easy, but it can also be easy to goof up. If you’ll need the funds in fewer than two years, I’d stick with cash. But if your proximity to needing your money is more than a few years but less than a decade away, you naturally want to outearn inflation. At the same time, with a shorter holding period, not taking too much risk is also crucial. I’ve created some [model portfolios for short- and intermediate-term time horizons]( informed in part by [Morningstar’s Role in Portfolio framework](. And because most of us invest for shorter- and intermediate-term goals outside of tax-advantaged retirement vehicles, I’ve created tax-efficient versions, too. These model portfolios all use inexpensive active bond funds, though I think that bond index funds and ETFs are also a perfectly reasonable option. Morningstar’s analysts regularly check in on the performance of active funds versus their index counterparts in a report called [The Active/Passive Barometer](. They’ve found that the long-term success rate for active US equity funds (especially US large caps!) is poor, but a touch better for actively managed foreign-stock and bond funds, especially the lowest-cost 20%. The active versus index debate is one of the biggies in investment circles, but John Rekenthaler waded into even more controversial territory with his look [at the two presidential candidates’ economic and tax plans](. If you’re worn out by our current political season, you’ll appreciate John’s attention to balance and humor. Finally, [I got my hands on my new book, How to Retire](zg_bs_g_2731_d_sccl_1/143-2932733-6203903?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=57609&psc=1&elqTrackId=e7cb7c313b7d4634bd86689b79f63217&elq=cd47eaf9a60542f291c906d74c778ac3&elqaid=57609&elqat=1&elqCampaignId=29390&elqak=8AF5A4837E4C1205EBDB434863168577049FC39907A1ED40DA7818BF97A9F7120958), over the weekend, and that was a wonderful feeling. My joke is that now I know what I can accomplish when I work all the time. But I’m super proud of the book, and I loved my recent conversation about it with [my longtime friend and collaborator Susan Dziubinski](. I hope that you’ll enjoy exploring the retirement-planning terrain with me. Enjoy these waning days of summer! With warm regards, Christine Benz [Model Portfolios for Short- and Intermediate-Term Goals]( Investing for shorter time horizons can be harder than it looks. Here’s how to make sense of it. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [What to Make of the Presidential Candidates’ Economic Plans]( An agnostic guide to Harris’ and Trump’s proposals on tax cuts, tariffs, and more. [Check It Out]( [Bond Managers Give US Actively Managed Funds a Narrow Leg Up in Early 2024]( Exploring the latest edition of the US Active/Passive Barometer. [Read More]( [Morningstar’s Role in Portfolio Framework]( Discover Morningstar’s practical guidelines for goals-based financial planning. [Find Out More]( [5 Things I Learned About Retirement Planning From My New Book]( When it comes to preparing for life after work, the learning never stops—not even for the experts. [Watch]( [Hendrik Bessembinder: Do Stocks Outperform Treasury Bills?]( The Arizona State professor delves into his provocative finding that most stocks have underperformed cash over time and the implications for investors’ portfolios. [Listen Now]( [How to Use Taxable Bonds in a Portfolio]( The value of taxable bonds in reducing risk and generating income. [Read More]( [Order Christine's New Book, How to Retire, Today!](zg_bs_g_2731_d_sccl_1/143-2932733-6203903?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=57609&psc=1&elqTrackId=a68ce115c5eb4e348a4b4a7025738670&elq=cd47eaf9a60542f291c906d74c778ac3&elqaid=57609&elqat=1&elqCampaignId=29390&elqcst=272&elqcsid=4241&elqak=8AF5826062BDA3485EC1463200C6F23F3907C39907A1ED40DA7818BF97A9F7120958) What's the secret to a healthy, happy, and wealthy retirement? To find out, Christine Benz asked 20 retirement experts to each share one key lesson they believe leads to success. The result is her new book, How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement. Her latest work is designed to give you the tools and insights you need—whether you're nearing retirement or already retired—to approach it with confidence, wisdom, and a specific plan to maximize both your financial and personal resources. 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