5 portfolio time bombs

These common mistakes could send your retirement savings up in smoke. Find a better way to divvy up your investment pie.

Money 70 Index Funds
Fund Expense Ratio
Fidelity Spartan Total Market (FSTMX) 0.1%
Vanguard Small Cap (NAESX) 0.2%
Fidelity Spartan International (FSIIX) 0.1%
Vanguard Emerging Markets (VEIEX) 0.4%
Vanguard Total Bond Market (VBMFX) 0.2%
Ignoring your portfolio - solution
Keep tabs on what your fund's managers are buying and selling by reading their semi-annual letter, and look on the fund's Web site for the average size of its equity holdings. If you see that your small-stock fund now owns big firms or that a domestic portfolio has 40 percent in foreign stocks, consider replacing it.

Or opt instead for index funds, which simply track their benchmark index and are therefore less subject to changing styles.
Hot performers Solution Too little diversification Solution Ignoring your portfolio Solution Being too conservative Solution Company stock Solution
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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.