Last summer I rolled my old 401k into an IRA at Zecco and then I immediately converted it to a Roth IRA . After getting it moved over I was so excited about my accomplishment that I really haven’t done much with it since! So, recently I decided to get on the ball and so I am going to try out the Sound Mind Investing ‘Fund Upgrading’ Strategy . For those of you who don’t know SMI is a Christian Investing Newsletter. They have been around for over 20 years and have been recommended by Larry Burkett and Crown Financial . Investing Strategies Basically SMI has two investing strategies to choose from depending on how much time you want to invest. Each invests in just a small handful of mutual funds. Just the Basics This strategy is very low maintenance and requires investors to check it and make purchases or sales one time per year . According to SMI, “Just-the-Basics uses Vanguard index funds to roughly match the performance of the overall stock and bond markets. Once your money is allocated among the funds initially, your only housekeeping chore is a quick rebalancing once per year.” Fund Upgrading The Fund Upgrading strategy is still relatively low maintenance and requires investors to check their portfolios on a monthly basis. Generally funds are only sold a few times a year and don’t need to be sold each month. According to SMI, “Upgrading assembles a portfolio from the recommendations updated each month on SMI’s Recommended Funds page. It is designed for those willing to periodically adjust their mutual fund holdings with the goal of owning those funds demonstrating superior results at any given time.” Strategy Performance One of the things that got me interested in trying it out was the fact that the Fund Upgrading strategy has handily outperformed US Stocks over the last decade. Even the “Just the Basics” strategy has been outperforming US Stocks – not bad for only having to check your portfolio annually. Trying it Out The nice folks from SMI actually gave me a free web subscription to try it out a long time ago, and I am finally just getting in there to try it out. The first step is to determine your risk tolerance (or investing temperment). The site walks you through a series of questions to gauge what type of investor you are and how much risk you should be taking. Next, they look at how long you have until retirement. This affects the portfolio balance of stocks to bonds. And in the 3rd step they discuss the two investing strategies mentioned above and the investor decides which he/she prefers. I decided to go with the Fund Upgrading strategy. After making my choice I simply had to look at their latest newsletter and see their recommended funds in each of 5 categories. I then headed over to my Roth IRA at Zecco.com and purchased each of the 5 funds. A couple weeks later I got an email saying that the newest monthly newsletter was available. I went and checked it out and none of my recommended funds had changed, so I didn’t need to do anything. Easy peasy. I am going to be keeping a close eye on the performance over the next couple years as I try it out. I will be reporting back about it. Free 30-Day Trial! I asked the folks at SMI if they could work out a 30-day trial for you guys to try it out and they said yes! So, if you are interested in trying it out you can kick the tires for 30 days WITHOUT providing credit card info – not bad. In order to get the free trial go via this link . Related Articles: Index Funds, Mutual Funds, & ETFs Defined 5 Fundamentals for 401k Investing Diversification strategy from the Bible Passive Investing: A No-Brainer Christian stock investing: How to be Biblically responsible 3 keys to safe and successful investing Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the “long” way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter . The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
View original post here:
Sound Mind Investing Strategy