Portfolio Observer

The Portfolio Observer is an ongoing research effort that reports on recommended asset allocation and diversification strategies for our members.

Portfolio Management: It's a Balancing Act You’ve carefully weighed in your own mind how you want your retirement portfolio to look: just the right amount of your assets allocated to stocks versus fixed-income investments. You feel comfortable with the growth/income and risk profile of your investment portfolio, and you have carefully diversified your assets over all the investment categories, and even within each category. Then, inevitably, the market jumps up or down, and your investment portfolio is thrown completely off balance. What should you do? Continue to Full Article

The following represents 1, 5 and 10-year returns for the three asset allocation models we discuss in this area.

Asset Allocation Returns 1 yr 5 yrs 10 yrs Aggressive Portfolio 0.7% 15.9% 7.1% Moderate Portfolio 2.4% 12.6% 6.7% Conservative Portfolio 3.0% 8.8% 5.9%