Both STAR and Balanced Fund are 60% stocks and 40% bonds and are fine one stop shops to investing. You could get away with using just one of them.
Balanced Fund has drastically outperformed STAR in the past 10 years and much of that is because STAR is a fund of funds. Balanced Fund is an index built on individual stocks.
I'd pick Balanced Fund because STAR is dependent on manager stock selection whereas Balanced will just try to mimic an indexed portfolio (60% Wilshire 5000 / 40% Lehman Bond (AGG)).
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