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Creating an Asset Allocation Plan
Asset allocation — finding the right balance of stocks, bonds and cash equivalents in your portfolio — is one of the most important factors in reaching your financial goals. In fact, we believe that getting your asset allocation right counts for about 90% of all investment success, far more than picking the right investment. Knowing this simplifies the investing process because it allows us to focus on investing in the correct categories, and not on the specific stock, bond, or fund within each category.
AARP Lifestyle Funds (AARP Aggressive Fund, AARP Moderate Fund, AARP Conservative Fund) are designed with a built-in asset allocation feature, allowing you to select from conservative, moderate or aggressive portfolios. To illustrate what a sample asset allocation plan might look like, here are the three asset allocation models used by AARP Lifestyle Funds.
Please note that the funds may temporarily stray from the target mix, and not perform as well as if they had invested pursuant to the target mix at all times.
Conservative
Moderate
Aggressive
There's no such thing as one right investment strategy, and most strategy's need to be adjusted from time to time. For instance, as your goals, needs, wants, and risk levels change as you grow older, you'll most likely need to make adjustments to your investment plan.
Please remember that asset allocation cannot assure a profit or protect against a loss.
The mutual funds described in this site are sold only to U.S. residents.
Past performance is no guarantee of future results. Investing in mutual funds involves risk, including possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, fees, charges and expenses before investing any money. The prospectus contains this and other important information about the Funds. Please read the prospectus carefully before investing.
These articles are not meant to be a financial plan. A financial plan generally addresses a wide spectrum of financial needs including insurance, savings, investments, tax and estate planning.
While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself, and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is a registered investment adviser and a subsidiary of AARP.
AARP Funds are advised by AARP Financial Inc. and distributed by ALPS DIstributors, Inc. a registered broker/dealer.
AARP Financial Inc. is not affiliated with ALPS Distributors Inc.