Investing is easy…or at least should be fairly straightforward for most people.
The hard part is having the discipline, confidence, and long-term perspective to see it through.
Most people would be best served by simply selecting a diversified portfolio of securities that aligns with their investment risk tolerance and time horizon, and sticking with it. Continue adding to your savings each year; rebalance to your target asset allocation on a regular schedule; and only shift your holdings to match changes in your life (not in the market’s performance).
But how is investing easy?
Because there are lots of resources available—from respectable and qualified sources—that show you what to invest in. Including plenty of sources available at no cost.
Click one of the links under Investment Portfolios below to see examples of portfolios available.
Sponsor
Free portfolio allocation models
20-80 Conservative Portfolio
40-60 Moderate Portfolio
60-40 Balanced Portfolio
80-20 Growth Portfolio
100-0 Aggressive Growth Portfolio
Dividend Equity Strategy
… Coming Soon! …
What should trigger a change in my portfolio?
Life changes that might trigger a portfolio change would include anything that alters the investment time horizon and/or risk tolerance that determined your asset allocation to begin with. Things like shifting to a less volatile portfolio as you get closer to retirement or adjustments based on changes to your employment (loss of job, shifting to a less secure profession, etc.).
How do I know my investing risk tolerance?
Search for risk tolerance or investor profile questionnaires that will recommend which portfolio (conservative, moderate, growth, etc.) is appropriate for you. Vanguard has one; as do many other asset management firms.
