AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
Could you suggest an asset allocation strategy of how a beginning investor desiring moderate to high growth (say in their 20's) would start in mutual funds. Whilst through the passage of time how much change should the investor direct to his portfolio allocation of funds to become more conservative, from 20's all the way to the stages of retirement.
Assuming the investor never needs to withdraw any significant amount from the portfolio of funds and keeps reinvesting the dividends for most of their life.
Answer Although there are various rules of thumb, a person's asset allocation should be based on their specific goals, risk tolerance, rate of return requirements, etc. In light of this, it is difficult for me to offer a general strategy. If you visit the following website, there is good information regarding this. www.vanguard.com. Go to the personal investors section and look at the planning and advice tab for asset allocation information and info on mutual funds. I hope this helps.
