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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • 2013 Investment Portfolio Makeover Week 0 comments
    May 24, 2013 9:03 PM

    Morningstar Investment Research

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    May 24, 2013 - 2013 Investment Portfolio Makeover Week - by Morningstar Investment Research

    The numbers are remarkable. It started in 2011, when the oldest members of the baby boom (those born between 1946 and 1964) reached age 65. At the time, Pew forecast that 10,000 of them would hit that age each day in 2011. And in 2012. And in 2013. And every year until 2030, when 18% of the population (up from 13% in December 2010) will be age 65 or older. Concurrent with this tremendous demographic shift is another big transition--the move away from defined-benefit plans--pensions--to so-called defined-contribution plans--401(k)s, 403(b)s. Because these trends will be with us for the long term, getting a solid handle on your own portfolio will be critical not just for baby boomers, but workers of all ages, many of whom are juggling multiple investment goals. During Morningstar.com's 2013 Portfolio Makeover Week, our director of personal finance, Christine Benz, helped a diverse set of investors fit the pieces together. She sized up existing holdings and presented a possible new lineup of investments for those in similar situations, while offering ideas on allocation, asset location, and other upgrades. See the complete makeover lineup here.

    Opening a Coverdell May Require Shopping Around

    I'd like to open a Coverdell account for my child, but my fund company doesn't offer them. How do I go about getting one?

    Morningstar assistant site editor Adam Zoll said a Coverdell Education Savings Account can be a great way to save for educational expenses, especially for families with precollege costs. A Coverdell is similar to a Roth IRA in that contributions grow tax-free and distributions are also tax-free if used for qualified educational expenses. Coverdell accounts are often mentioned alongside 529 college-savings plans in that both offer tax-advantaged ways to save for education. But there are some key differences, in terms of both advantages and drawbacks.

    Among the other topics we addressed this week:

    Once Again: Are Bonds a Bubble? On bubbles, balanced investing, and Rekenthaler's latest fail.

    Can Vanguard Keep the Faith While Expanding Even Further? The biggest U.S. fund firm still stands out.

    T. Rowe Expands Target-Date Business With New Series. In a tough week for Marsico, the firm is removed as a subadvisor on two separate funds. Also, Calamos plans dividend and mid-growth funds, Oppenheimer to close Discovery to new investors, and John Hancock makes a raft of portfolio-management changes.

    The Devil, the Details, and Fund Manager Changes. Why some funds' Analyst Ratings change when their managers do and others don't.

    Our Pick for Emerging-Markets Small-Cap Exposure. This dividend-weighted strategy has resulted in a relatively less volatile fund.

    Risk and Return for Emerging-Markets Income. We look at two facets for analyzing emerging-markets bond CEF distributions.

    Has Exelon's Rally Run Its Course? We're still bullish for the long term, but the stock may have gotten ahead of itself in the short term.

    If the Sun Continues to Shine on Japan, These Foreign Funds Are Ready. Investors looking for diversified foreign large-cap funds that have an overweighting in the country should consider these names.

    How Risky Are International Dividend ETFs? Don't forget about quality when investing in dividend-paying companies abroad.

    Click Here for a Free Trial of Morningstar Investment Research

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