Portfolio Strategy is a function of what your needs, goals and attitude towards risk vs. reward are at any given time. How do you determine a strategy?
Here is a simple path to get started:
The assumption is that you want retirement investments to be protected from any large setbacks and you want a reasonable rate of return.
The basic core portfolio will protect retirement money and target a return that is in excess of current inflation, allowing the portfolio to keep ahead of the cost of living at a minimum.
Investments NEED to meet your goals. For example, if you need to:
- Grow assets
- Achieve above average returns for growth
- Make sure you have enough money for retirement
- You have a long term investment time horizon
You want a Conservative Growth Portfolio.
If you need:
- To protect your assets
- Receive regular income from your portfolio
- Make your income producing assets last as long as you do
You want a Conservative Income Portfolio
Your Needs, Desires, Goals = Your Investment Strategy
For more details click Portfolio Decisions