Getting Started Portfolios FAQ
WHO ARE THE "GETTING STARTED PORTFOLIO'S" FOR?
The Getting Started Portfolios 
are for those with less than $25,000 to invest. They're like the training wheels on a bike. They're helpful to get you up and going, and you feel more secure having them guide you. But eventually you'll outgrow them. The Getting Started section is offered as a guide to those who don't have large portfolios and are just beginning to get comfortable in their understanding and use of mutual funds.
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WHY NOT JUST USE THE REGULAR SMI STRATEGIES?
Actually, you are. SMI's Getting Started portfolios are simply scaled-down versions of Just-the-Basics and Upgrading, designed for those with lower account balances. This eliminates many of the problems you might otherwise run into, such as fund minimum purchase requirements and the need to hold more funds than you can currently afford.
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HOW DO I BEGIN?
Read our Getting Started Portfolios page (or page 2 of SMI's Fund Performance Rankings), and choose whether you wish to use an Indexing portfolio or an Upgrading portfolio. Once you've decided that, select where you wish to open your account and follow the links to SMI's recommended funds for that organization (also can be found on page 3 of the Fund Performance Rankings ).
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IT SEEMS THE FUNDS RARELY CHANGE IN THE GETTING STARTED PORTFOLIOS. WHY IS THAT?
In the Getting Started portfolios, we tolerate the possibility of less than top performance to accommodate the needs of smaller Level 3 accounts. As a result, these portfolios are less active than their level 4 equivalents. The telephone symbol 
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WHAT IF MY ACCOUNT IS AT AN ORGANIZATION OTHER THAN THOSE LISTED?
If you decide on Indexing, it won't matter a great deal. Look through the funds available at your organization for similar index funds to those we've listed. If you decide on Upgrading, use these Generic portfolio allocations. For example, if you want to create an Upgrading portfolio at Fidelity with $12,000, you would invest 30% of your money in one of Fidelity's better performing stock funds from either Risk Category 2 or 3, 30% in a fund from Risk Categories 1 or 2, and 40% in another fund from either Category 1 or 2. Using the percentage allocation suggestions in conjunction with the Fund Performance Rankings , it's easy to put together and monitor your own Getting Started portfolio.
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WHEN MY ACCOUNT REACHES $25,000, SHOULD I START A NEW ACCOUNT FOR LEVEL 4?
No, the idea is for your level 3 Getting Started account to simply become your level 4 Just-the-Basics or Upgrading account. The only difference will be that when your account grows large enough, you can stop using the simplified Getting Started fund recommendations, and start using the main recommended funds in each month's issue of SMI.
When your account reaches $25,000 you may find it more convenient to transfer your account to a new home — Vanguard for Just-the-Basics (or possibly Enhanced Just-the-Basics), and Scottrade, TD Waterhouse, or Fidelity for Upgrading. Indexers will find Vanguard's advantages become more pronounced for larger accounts, making it worth a move in many cases. Enhanced Just-the-Basics is most easily implemented at Vanguard if you're choosing a new fund company anyway, but it can also be implemented from the other recommended brokerages.
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WHY AREN'T THERE ANY BOND FUNDS LISTED IN THE GETTING STARTED PORTFOLIOS?
That's primarily because most Getting Started investors tend to be young, and are typically looking for growth as a result. These portfolios are designed to keep you invested 100% in stock funds. However, if you prefer, you can reduce your risk by adding a bond fund into the mix and changing the percentage allocations to suit your preference. These are guidelines, not absolutes, so don't feel bound to them. If you do add a bond fund, Vanguard's Total Bond Market Index (VBMFX) is probably a good choice.
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