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So, the most
important thing you can do as an investor is to make sure your assets
are allocated appropriately. How do you go about it?
The key things that
determine how your assets should be allocated are your goals, timeframe,
risk tolerance, and financial situation. Your asset allocation should
reflect all these factors and balance risk and return potential accordingly.
Taking all these factors into consideration will help ensure that you
don’t wind up with an allocation that's too conservative or aggressive.
What’s more,
as your goals, timeframe or financial situation change, so should your
asset allocation. For example, as you near retirement, your assets should
gradually shift to a more conservative allocation, oriented more toward
capital preservation rather than growth.
How
Asset Allocation Can
Change With Age
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| Source: These
portfolios are for illustration only and may require substantial
modification based upon the individual circumstances of the investor.
For more information, including charges and expenses, contact 1-800-622-FUND (3863) for a prospectus. Please read the prospectus carefully
before investing or sending money. |
Since this decision
is so important, many investors rely on the guidance of an investment
professional for help allocating their assets. And many financial services
providers, in fact, offer asset allocation programs. Asset allocation
programs are designed to help make the allocation process as convenient
as possible, and offer investors the benefit of professional investment
expertise in making their decisions and maintaining their allocations.
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