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Portfolio Allocation Strategies
Strategy #1 CD-Plus Strategy
Goal: Achieve annual returns of 125% of 1-year Bank Certificates of Deposit
Investment Mix: - Short & Long term bond funds
- Income funds for dividends
- Government & Corporate debt securities
- Equity Income Funds
Expectations: Attempts returns averaging 125% of 1-year Bank Certificates of Deposit (CD).
Strategy #2 Moderate-Conservative Strategy
Goal: Diversification through asset allocation in no-load mutual funds. Provide 3 to 5-year average return equal to 75% of the stock market.
Investment Mix: - Lower risk Equity funds
- Growth & Income funds
- Balanced funds
- International funds
- Bond funds
Expectations: Attempts annual returns of 75% of the stock market over a 3 to 5-year period. Less portfolio volatility.
Strategy #3 Moderate Strategy
Goal: Diversification through asset allocation in no-load mutual funds. Provide 3 to 5-year average return equal to 100% of the stock market.
Investment Mix: - S&P 500 iShares/funds
- Mid-Cap iShares/funds
- Small-Cap funds
- International/World funds
- Growth Funds
Expectations: Attempts annual returns of 100% of the stock market over a 5 to 8-year period.
Strategy #4 Moderate-Aggressive Strategy
Goal: Diversification through asset allocation in no-load mutual funds. Significantly out-perform stock market over 5 to 8-year period.
Investment Mix: - Aggressive growth funds
- Small-Cap & Micro-Cap funds
- Sector iShares
- International/World funds
- Index iShares
- Leveraged funds
Expectations: Achieve significant gains above stock market returns over a 5 to 8-year period.
Notes: - Stock market Benchmark Standard&Poors 500 index, an unmanaged market capitalization-weighted index of common stocks.
- Actual mutual fund selections, dependent on account assets, could total 4-12 funds and may change from quarter to quarter pending market activity, market direction, market sentiment, volumes and certain fund performance ratios.
- Dollar Cost Averaging may be used and involves continuous investing regardless of flucuating price levels. DCA does not guarantee profits or loss protection.
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