Deals, Coupons, Discounts

I want to start an Index Fund strategy for my portfolio. I currently have my investments at Fidelity but am not adverse to switching my retirement funds to another company if it is more advantageous in the long run. The only cost would be $50 per account type to take it out of Fidelity. I am considering two strategies.

The first is proposed by the book "The Coffeehouse Investor" by Bill Schultheis. He recommends either a 3 or 5 Index Fund approach.

3 Fund Approach
Large Company Stocks
International Stocks
Small Company Stocks

5 Fund Approach
Large Company
Large Company Value
Small Company
Small Company Value
International and REITs

The second approach is proposed by the book "The Four Pillars of Investing" by William Bernstein. It is more diverse but will take years to fully realize and will be difficult to implement at Fidelity because of the high minimum requirements for their Index Funds (many start at $10k). I am considering the following approach from the book.

12% Vanguard 500
15% Vanguard Value
3% Small-Cap
9% Small-Cap Value
6% REIT
1.8% Precious Metals
3% European
3% Pacific
3% Emerging Markets
4.2% International Value
40% Cash, Bonds

There is a detailed spreadsheet in the book that shows what to purchase each year based on the maximum IRA annual contribution amounts.

My concern with the first approach is it is not diversified enough. He doesn't even include Bonds. My concern with the second approach is that it is difficult to implement with small amounts (approx 50k in retirement funds).

Any feedback appreciated.

The Witcher PC, $7.20 after bing CashBack, free shipping plus more games
zipzoomfly is selling The Witcher for $8 shipped on eBay:

http://cgi.ebay.com/The-Witcher-PC-Game-New-Ships-from-USA_W0QQi...

Also, you can download the complete massive update to make this the enhanced/directors cut edition and remove the cd check

http://www.thewitcher.com/

Also for sale for cheap is Quake Wars for $4

http://cgi.ebay.com/Enemy-Territory-Quake-Wars-Shooter-PC-Game-N...

Ghost Recon Advanced Warfighter $4.99

http://cgi.ebay.com/Ghost-Recon-Advanced-Warfighter-PC-Shooter-G...

Supreme Commander $4.99

http://cgi.ebay.com/Supreme-Commander-THQ-PC-Strategy-Game-New_W...

Far Cry 2 $9.99

http://cgi.ebay.com/FarCry-2-Far-Cry-Shooter-PC-Game-New-XP-Vist...

Bing CashBack is currently at 10% and many keywords work such as wii

At Verizon Wireless, search for "PBT975Z" to find the Plantronics Discovery 975 Bluetooth Headset for $69.99.
Apply coupon code "ACCYSAVE20" to slash it further to $55.99.
With free shipping via overnight delivery. Sales tax is added where applicable.
Verizon Wireless

Story highlights:

1) Son went to a state school 3 hours away from home. Got kicked out after 4 semesters for academic reasons. Never told us. Claims now that it was because of too much partying. I paid 5th & 6th semester's worth of tutition to the school, but son set up his student account refund into his bank account, so since my payment resulted in a massive credit (no charges applied to the account) all that $$$ got refunded/deposited into his account.

2) Son didn't make any efforts to transfer or get re-admitted.

3) Son picked up full time job at a Bank as a teller.

4) This all unraveled last week. Right now we would be in the 6th semester.

5) Son is signed into an apt lease at state school until June. -- $400/month is his share.

6) He racked up $5k in credit card bills. Used my tuition money to pay off his credit card bills. Lots of money still unaccounted for.

Right now, all I'm looking for is advice on how to teach him about money. Kicking him out of the house is not a consideration. I've brought him home to enroll in a local community college for this semester. Ultimate goal is to get him back into the state school (they have a re-admission process). However, I need to reform him in the next few months before he would (possibly) go back.

I know this may not be the best forum to post this, but you guys usually have good advice on financial stuff, and further, you all have probably been successful in teaching your kids about money. I realize I did obviously not instill good financial values (among others) in him, so I don't need to be convinced that I messed up. Looking for strategies GOING FORWARD.

Thanks.