Portfolio Making Principles

The first group of investors are all full-time employed in their late 30s  For this group of people it is to suggest that they should save in such a way their priorities include saving for their children education and then for other future pursuits. They should not put all their money in single stock or a single industry. If investing in mutual funds, might put 40 percent of your money in growth funds, 20 percent in aggressive growth funds, 20 percent in tax-exempt bond funds and 10 percent in money-market, checking and savings accounts.  People in late 30s with full-time employment should have 80 percent equities or similar higher risk investments focused on growth, while also offering income-oriented investments. A moderately aggressive portfolio may be suitable for them as reasons of choices:  • They have moderately high expectations for a return on your investments  • Can tolerate market downturns and volatility for the possibility of achieving greater long-term gains  • Desire potential returns that moderately outpace inflation  • Have 10 years or more before you will need to utilize the money from your investments  30s PORTFOLIO  ASSET CLASS ALLOCATION    STABILITY OF PRINCIPAL (SP) 5%       BONDS (BD) 15%       LARGE CAP VALUE (LV) 20%       LARGE CAP GROWTH (LG) 20%       SMALL/MID/SPECIALTY (SM) 20%       GLOBAL/INTERNATIONAL (GL) 20%      The second group are all in their early 50s and in part-time employment  All that this group of people want is a conservative portfolio with only 20 percent invested in growth and growth and inc ...
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