My tech and health-care portfolio is down 30%. Is it time to diversify?
By Sheryl Hilliard Tucker Reporter Associate: Judy Feldman

(MONEY Magazine) – Q. This year I rode the bear market, and now my technology and health-care fund portfolio is down about 30%. I'm 52 and plan to retire in 10 years. Should I diversify my holdings? GIUSE NELLI SALT LAKE CITY

A. Although tech and health care will probably dominate the financial news throughout the decade, staking your future on such volatile holdings sure is risky. So instead of betting the house on such a targeted mix of stock funds, stabilize your portfolio with a 20% bond position and diversify your stock funds across several industries. For asset-allocation strategies that suit your aggressive investment style, check out Vanguard's Plain Talk Library's Investment Planner at www.vanguard.com, T. Rowe Price's Retirement Planning Kit (800-638-5660) and www.money.com, keyword: asset allocation.

Q. My husband and I are getting divorced. What's the best tax strategy for dividing an IRA in his name? We are both retired. I'm 55, he is 65. JUDITH ORLOPP VALLEY SPRINGS, CALIF.

A. As the song goes, breaking up is hard to do, but even as tempers flare, staying focused on all things financial will keep Uncle Sam from benefiting from your misfortune. To avoid triggering unnecessary taxes, consider these two alternatives to splitting your nest egg: A direct transfer lets you simply move your share of the holdings from his IRA into an IRA account in your name. Or if your husband has more than one IRA, he can sign over one of his accounts to you. He must agree to give you 100% of what's in that account though. Whichever method you happen to choose, have the exact terms of distribution clearly outlined in your divorce or separation agreement.

Q. Fulfilling my duties as the executor for my father's estate in Florida has cost me an entire month's income. Can I be paid for my work? PENNEY PEIRCE NOVATO, CALIF.

A. The typical fee ranges from 1.5% to 3% of the estate in probate, with independent consultants like yourself at the low end. Banks that provide fiduciary responsibilities, such as document and tax preparation, generally command the higher end of the fee spectrum. Remember: The executor fee is deducted from the taxable value of the estate.

Q. Can a revocable trust be the beneficiary for a Roth IRA, a traditional IRA and a 401(k)? NICHOLAS ANDERSON BEVERLY HILLS, MICH.

A. Yes. However, the trust document must accurately fulfill Internal Revenue Service qualifications and address tax-law provisions, such as minimum required distributions, explains c.p.a. Ed Slott, editor of Ed Slott's IRA Advisor. But most boilerplate and revocable trust "kits" do not fit the bill, which is why you should consult an attorney with expertise in IRA trusts. To start your search, contact the American College of Trust and Estate Counsel at 310-398-1888 or www. actec.org.

Q. What's the difference between an American Depositary Receipt (ADR) and a New York Share? EARL MILLER REGO PARK, N.Y.

A. Both allow U.S. citizens to buy, hold, sell, trade and receive dividends of foreign companies in U.S. dollars. But New York Shares are generally unique to companies in the Netherlands. Two good websites to check: J.P. Morgan's www.adr.com and Bank of New York's www.adrbny.com.

REPORTER ASSOCIATE: Judy Feldman