I came across a great "article" (is that the right term for an audio segment which is also available online?) on David Swensen.  Swensen manages Yale's endowment, and has managed success even during these trying bear markets, realizing an average annual return of 17.8 percent over the last 10 years.

David Swensen's book, Unconventional Success, has received complaints for being a very dry read.  That's unfortunate, because the message seems to be a good one:

• invest broadly in index funds (avoiding other mutual funds due to their built-in cost structure)
• rebalance your portfolio to match your goals as often as you can while still avoiding fees
• do it yourself, avoiding costs associated with account managers

Swenson suggests the following portfolio:

30% Domestic Equity (VTSMX, TINRX)
20% Real Estate (VGSIX, TCREX)
15% US T-Bonds (VFISX, TCTRX, VFITX, TIORX, VUSTX)
15% US Treasury Inflation Protected Securities "TIPS" (VIPSX, TCILX)
15% Foreign Developed Equity (VGTSX, TIERX)
5% Emerging Market Equity (VEIEX)

The only challenge (that I'm reviewing) is the above portfolio requires an initial investment of ~$60k, since the minimum buy in for VEIEX is $3,000.  Doing the math the rest of the way up yields a starting investment of $60k.

The folks at The Motley Fool agree in general terms.  They say, simply, "Buy an index fund."