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11+ Years 100% Equities Model Portfolios and Time Horizons Risk Tolerance/Investment Philosophy 0-5 Years 6-10 Years High Risk/Aggressive 10% Cash 20% Bonds 30% Bonds 80%
11+ Years 100% Equities Model Portfolios and Time Horizons Risk Tolerance/Investment Philosophy 0-5 Years 6-10 Years High Risk/Aggressive 10% Cash 20% Bonds 30% Bonds 80% Equities 60% Equities Moderate Risk/Moderate 20% Cash 10% Cash 20% Bonds 40% Bonds 30% Bonds 80% Equities 40% Equities 60% Equities al Low Risk/Conservative 35% Cash 20% Cash 10% Cash 40% Bonds 40% Bonds 30% Bonds 25% Equities 40% Equities 60% Equities Suppose that Brooke is beginning a long-term investment plan for her retirement savings. She plans to retire at least 25 years in the future, so she has plenty of time for her investments to grow. Because Brooke is investing for the long term, she has a high risk tolerance and would like to grow her investments as aggressively as possible. Brooke is investor with a time horizon of Using the model portfolios provided, what is the ideal asset allocation for Brooke's portfolio, based on her time horizon and investment philosophy? If no fundo Using the model portfolios provided, what is the ideal asset allocation for Brooke's portfolio, based on her time horizon and investment philosophy? rial If no funds are recommended to be allocated toward an asset, enter "O" into the numeric entry box for that asset. Recommended asset allocation for Brooke's portfolio: Cash: % Bonds: % Equities: % If you In general, if you have a longer time horizon and a higher risk tolerance, then a higher percentage of your portfolio should be in are investing for a shorter time horizon, or if you have a more conservative investment philosophy, then you should invest a greater percentage of your portfolio in
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