(MONEY Magazine) – FOR FICTION'S MOST FAMOUS GOLD BUG

Harry Potter needs to conjure a better portfolio

Once Harry Potter and the Deathly Hallows is released on July 21, we'll learn whether the wizarding whiz survives a showdown with Lord Voldemort. If he does make it out of Hogwarts alive, the teenage orphan has another challenge ahead of him: what to do with the gold his parents left him, now gathering dust in a vault at Gringotts bank. While the metal's value has doubled in Muggle markets in the past four years, a 100% gold portfolio is all wrong for a kid fresh out of wizardry school. To capitalize on the real-world magic of compounding returns, Harry needs a diversified portfolio.

› 10% BONDS Harry's youth and high tolerance for risk dictate a small fixed-income allocation.

› 10% REITs Real estate investment trusts will round out his portfolio...so long as he avoids any developer who wants to build an office park in the Forbidden Forest.

› 80% STOCKS This will help him beat inflation and taxes over the long haul, says C.F.P. Jennifer Lazarus. (For American Muggles, she suggests putting a little more than half of this in U.S. stocks, the rest in international.) Fingers crossed, his retirement is farther off than this book's final page.

...Almost as fun as an Xbox

T. Rowe Price recently launched a year 2055 target-retirement fund, meaning its audience is currently about 19!...