Suggested Portfolios

The Starter Portfolio (Portfolio #1) is a well-diversified group of five companies—each representing an important industry. With each additional portfolio, you gain greater diversification.

We believe that a 20-stock portfolio provides sufficient diversification to minimize risk, but it is up to you to decide how many stocks you can afford to own. Please keep in mind that it does not pay to open a DRIP account that you won’t be able to fund with subsequent investments.

You might start with Portfolio #1 (below) and add portfolios in the order shown as your financial situation allows.

It’s easy to become enrolled in the direct investment plans (dividend reinvestment plans or DRIPs) of any of the above companies. Simply click on the company name (above). You'll find plan prospectus information and a link to enroll through the enrollment service provided by Temper of the Times Investor Services. Once enrolled you can accumulate shares over a period of time and never pay another dime in fees or commissions!

As you approach retirement, the traditional advice is to shift to income-producing stocks, such as utilities and blue-chip industrial companies. But people often live into their 90s these days, so it would be smart to continue to invest in some growth companies even when you do retire. If you haven't established a portfolio yet, you may find that the income from pensions, 401(k) plans, and Social Security offers you the chance to finally get started!

Portfolio for people in their 30s and 40s

If you're in your 30s or 40s, you're likely to have reached a point in your career where you earn enough to own a home and (along with a spouse) support a family. These are what marketers call the prime earning years.

Whether you need to start a much-delayed investment program or enhance an existing one, it's at this stage of life that you may want to continue to invest for growth, but with less risk. Some of the companies that were appropriate for a youngster may still be good choices. But you'll also want to add consistent dividend-paying companies, many of which offer excellent growth prospects, but also feature strong balance sheets and safety. Even big companies can take advantage of changing trends, and their investors can benefit. Such progressive companies can be used to construct (or reshape) a "grown-up" portfolio.

Portfolio for youngsters

Parents are often surprised by how enthusiastic a child may be about investing. Kids are happy to become owners of the companies whose products they regularly use, whether it's a soft drink company, a toy company, or a fast-food chain.

Kids may even surprise you with their familiarity with companies in "grown-up" industries, such as banks, oil companies, and utilities. Best of all, starting them early takes advantage of what they have the most of...time. We've written before about the effects of compounding and how the investment of $600 per year for six years...from the age of six...or a total of just $3,600, would grow into $1.3 million by the time the child retires, even at a historical 11% rate of return. Achieving a 15% return...quite possible for a market leader in a growth industry...would have an even greater effect. But the goal doesn't need to be that distant. Although college costs can be a staggering burden for many parents, a regular investment program, begun at an early age, can cover the cost of an education. For example, investing $2,000 per year and achieving just a 12% return would result in $124,879 in 18 years. And a child's tax rate is likely to be quite low, to say nothing of the special tax breaks af forded college costs.