The biggest factor in determining investment returns is not so much what stocks or stock
funds you choose, but what percentage of your money is in stocks, bonds, and cash. Here are some model portfolios:
1. Aggressive Model - If you won't need the
money for at least 10 years:
° Growth stocks and funds- 60%
° Aggressive growth stocks and funds - 25%
° International stocks and funds - 15%
2. Moderate Model - If you will need the money
in 5 years or less:
° Growth stocks and funds - 60%
° High-yield bonds - 20%
° Money market funds - 10%
° Corporate bonds or funds - 10%
3. Conservative Model - If you are living
on your investment income or need the money soon:
° Growth stocks and funds - 40%
° High-yield bonds or bond funds - 20%
° Corporate bonds or bond funds - 20%
° Money market funds - 20%
