Choosing the right asset mix

At a glance

  • Your investment target, time frame for needing the dollars, and possibility tolerance should establish your goal asset blend.
  • Each individual asset class—stocks, bonds, and cash—plays a different role in a balanced portfolio.
  • After you know your goal asset blend, you can decide on person investments to keep in your portfolio.

One particular of Vanguard’s essential investment rules is to develop clear, appropriate investment plans. For example, your target might be to conserve for retirement. That target, along with your time frame and possibility tolerance, determines your goal asset allocation—the best blend of stocks, bonds, and hard cash you should keep in your portfolio.

Your goal asset blend is like a bull’s-eye: Zero in on it, stay targeted, and tune out the distractions so you can arrive at your target.

Here’s some details to enable you decide on your goal asset allocation.

Get started with your target, time

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