Low risk dating strategy
A conservative investment portfolio is weighted towards bonds and money market funds, offering low returns but also very little risk.
Since 1990, the S&P 500 (considered a good indicator of U. stocks overall) varied wildly, from gaining 34% in 1995 to losing 38% in 2008.
So how should you balance a fear of risk with a need for good returns?
Target-date funds are mutual funds tailored to a certain retirement date - target-date 2060 funds are for people who aim to retire in 2060, target-date 2030 funds are for those who retire in 2030, and so on.
And finally, a balanced portfolio is - you guessed it - a balance between conservative and aggressive mindsets.
So what do conservative, balanced, and aggressive returns look like?