From
Your Perspective:
Identifying an investment strategy
Allocating for retirement
Once you’ve determined your investing
strategy by weighing these different factors, you can apply
that strategy when you’re allocating assets within
your portfolio — perhaps the most important of all
your investing decisions.
One way to determine your
asset
allocation
might be to start with a sample allocation,
such as this one, which shows a potential level of risk
and
diversification
appropriate for particular stages in your career:
20 or more years
to retirement
10 to 20 years to
retirement
5 years or fewer
to retirement
Large-company stocks
40%
35%
30%
Small-company stocks
30%
20%
10%
International stocks
10%
10%
Balanced funds (stocks & bonds)
10%
20%
20%
Long-term bonds
10%
15%
30%
Money market funds
10%
After considering the other factors that
personalize your investing strategy — your other retirement
assets, future income needs, risk tolerance, and tax bracket
— you can adjust your allocation accordingly.
