Do you have the right investments?

The answer has nothing to do with finding the single perfect stock or mutual fund. The key is changing your idea of what the 'right' investment really is.

Money 70: Index funds for each class
Large Cap: Fidelity Spartan 500 (FSMKX)
Mid Cap: Vanguard Mid Capitalization Index (VIMSX)
Small Cap: Vanguard Small Cap Index (NAESX)
Foreign: Fidelity Spartan International Index (FSIIX)
Bonds: Vanguard Total Bond Market Index (VBMFX)
Do you rebalance once a year?
Over time, some of your investments may soar while others lose money. Result: The blend of assets you put so much thought into will inevitably be thrown out of whack.

So to stay on track for retirement, periodically recalculate your mix and restore your portfolio to its appropriate balance by selling shares of winners and plowing the proceeds into losers. Ideally, you should set a day every year to do this - your birthday, an anniversary or any other date you will remember. Of course, a target-retirement fund does this work for you automatically.

The beauty of rebalancing is that it forces you to do what investors so often have trouble with - buy low and sell high. Annual rebalancing may even be able to reduce your portfolio's risk and boost its return. Do it regularly and you can feel confident you're doing what's "right" with your investments.
Asset Allocation Fees Avoid hot stocks Rebalance
You are if you can say yes to these four questions about your investing and money-management habits. (more)