Originally answered Sep 7, 2019

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A balanced investment strategy aims to balance a portfolio with:

  • Stocks or stock mutual funds
  1. Large-cap
  2. Mid-cap
  3. Small-cap
  4. Value
  5. Emerging markets
  6. International
  • Bonds or bond mutual funds
  1. Short-term
  2. Mid-term
  3. Long-term
  4. Taxable
  5. Tax-exempt
  6. High-yield
  7. High-quality
  • Real estate or Real Estate Investment Trusts (REITs)
  1. Commercial
  2. Residential
  • Other assets
  1. Commodities
  2. Options
  3. Business ownership
  4. Precious metals
  5. Rare coins
  6. Art
  7. Jewelry
  • Cash

— Money Market Funds

  1. Federal
  2. Non-federal

— Bank Accounts

  1. Certificates of Deposit (CDs)
  2. Savings accounts
  3. Checking accounts

The ratios will depend on

  • Individual risk tolerance
  • Tax consequences
  • Income needs
  • Short-term objectives
  • Long-term objectives

See also How to Invest.

Written by

Knowledge Management Author and Speaker, Founder of SIKM Leaders Community, Community Evangelist, Knowledge Manager https://sites.google.com/site/stangarfield/

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