Every investor has his or her own
risk profile,
time horizon, and goals. Every investor’s
portfolio will have a different mix of investments. This mix, called your
asset mix, can have a major impact on what you make.
How will asset mix affect my results over time?
In general:
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Portfolios that have more moderate risk investments, such as stocks, often do better over many years.
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They may also go up and down more in value.
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The danger is that there’s no guarantee what your investments will be worth when you need to sell. If you have to sell when prices are down, you will lose money.
The power of asset mix: Joan, Michel, and Miriam's stories
Each investor had a different asset mix, ranging from ultra-conservative to moderate-aggressive. The value of their portfolios rose and fell over the past 20 years as the economy changed. To learn more, read The power of asset mix: Joan, Michel, and Miriam’s stories.
Remember: Changing your asset mix changes your results.
You also change the level of risk. Only you can decide how you will invest your money. Look at your goals, your time horizon, and your investing style. Then try to find the balance between safety and growth that works for you. You can also consult an adviser for help in choosing the right asset mix.