Sample Asset Allocations

Much like a good suit, a person’s asset allocation should be tailored to fit him or her individually. Everyone has different goals, risk tolerances, and investment objectives. It is important to structure your asset allocation with those things in mind.

While I highly recommend that you meet with a competent professional to help you with your planning, I will lay out several broadly accepted sample asset allocations below.

Touch base if you have any questions or if you’d like a free consultation.

Joe Hearn
(402) 331-8600
joe@intentionalretirement.com

Preservation

If you’re close to retirement and can’t afford to see the value of your portfolio fluctuate significantly, an allocation focused on preservation could be for you. It is heavily weighted toward bonds and cash and the primary goal is to keep the portfolio from losing money.

Conservative

A conservative portfolio is geared for someone that wants to minimize portfolio fluctuation, but is willing to take on a little more risk in order to achieve some growth. This can be accomplished by allocating more of the portfolio to conservative, dividend paying stocks.

Balanced

A typical balanced portfolio is almost the mirror image of the conservative portfolio. While still fairly conservative, the larger percentage in stocks acts to put capital appreciation on a more equal footing with income generation.

Growth

The primary objective of a growth allocation is, not surprisingly, growth. You can expect greater volatility and you need to have the intestinal fortitude (and financial ability) to ride out those swings without panicking. Most of the portfolio is made up of stocks.

Aggressive Growth

An aggressive growth allocation is typically reserved for someone with lots of time before retirement. With 100 percent of the portfolio in aggressive growth stocks, things can get pretty bumpy.