Sample Investment Allocations
You should make sure that the types of investments in your accounts are reasonable for the type of investor that you are. Below, you'll find some sample investment allocations that you can use to compare and contrast against your existing holdings.
Of course, these allocations are just a starting point. If they are glaringly different than what you (or your financial planner) are doing, you'll want to take a closer look. For example, if you're an aggressive investor you might ask yourself or your advisor why your account has a large portion in cash. These samples should not be considered investment advice — your individual situation requires that you have an individualized portfolio.
Conservative Investor
A conservative investor is mostly concerned with avoiding large losses and earning income. A conservative portfolio will fluctuate with the stock and bond markets, but it should be less volatile than a more aggressive portfolio.
|
8% |
Large-cap stocks |
|
2% |
Mid-cap stocks |
|
5% |
Alternative investments |
|
6% |
International stocks |
|
5% |
High-yield bonds |
|
19% |
Intermediate-term bonds |
|
40% |
Short-term bonds |
|
15% |
Cash equivalents |
Moderate Investor
A moderate investor wants a balance of long-term growth with moderate volatility. Current income is not a primary goal. The account value will most likely fluctuate more than a conservative investor's account.
|
22% |
Large-cap stocks |
|
8% |
Mid-cap stocks |
|
5% |
Small-cap stocks |
|
10% |
Alternative investments |
|
15% |
International stocks |
|
3% |
High-yield bonds |
|
13% |
Intermediate-term bonds |
|
19% |
Short-term bonds |
|
5% |
Cash equivalents |
Aggressive Investor
An aggressive investor is mostly concerned with long-term growth of capital. This investor is comfortable with dramatic account value fluctuations, and invests mostly in stocks.
|
32% |
Large-cap stocks |
|
12% |
Mid-cap stocks |
|
8% |
Small-cap stocks |
|
10% |
Alternative investments |
|
28% |
International stocks |
|
10% |
Intermediate-term bonds |
Again, this is just a basic template that you can use to compare and contrast against your existing holdings. As you get more advanced, you'll find that the classifications above can get split into more and more detail. For example, large-cap stocks can be further split into large-cap growth and large-cap value. Likewise, international stocks might include large developed countries and smaller emerging markets.
