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Moderate Asset Allocation

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You may want to consider this model's mix of stock, bond, and cash investments if:

  • You don't need current income.
  • You want solid growth with relative stability.
  • You can tolerate some fluctuations but considerably less than the overall stock market.

See other models:



Steps for choosing investments

Cash investments can be used for near-term expenses and emergencies. Preservation of principal may be your primary concern.

Steps to consider:

1. Maintain a year of cash.

Establish a checking or savings account with enough cash for a year's worth of expenses (including taxes) minus income from pensions, Social Security, etc.

More about setting up these accounts

2. Build a short-term reserve.

Consider earmarking all or part of your portfolio's cash allocation as a reserve you can tap into as needed.

  • For the reserve, aim to invest one to four years’ worth of expenses in cash investments.
  • If funds are not sufficient in your cash allocation, you may be able to use part of your short-term fixed income allocation for a reserve as well.

More about your short-term reserve

Next Steps:

Find cash and cash investment solutions for this portion of your retirement portfolio.

Past performance is no guarantee of future results. Example is for illustrative purposes only.

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