| |
|
|
|
Select
an investment strategy...
If you’re looking for a solid investment strategy,
here are some sample portfolios that you may wish to use
as a guide.
Make changes to your 401(k)account on www.schwabplan.com.
As a general rule, you can follow these guidelines: |
| Years
to retirement |
Appropriate
portfolio choice |
| Over 20 years |
Moderate,
Moderately Aggressive, or Aggressive |
| 10 –
20 years |
Moderately
Conservative, Moderate, Moderately Aggressive |
| 5 – 10
years |
Conservative,
Moderately Conservative, Moderate |
| 0 –
5 years |
Short Term,
Conservative, Moderate Conservative |
|
| Short
Term |
|
Average Annual Return
(1982-2001) 8.27%
Best year: 21.70%
Worst year: (1.50%)
|
 |
| For investors
who want current income and a high degree of stability
in their investments. Given a short-term time horizon,
it is prudent to choose investment strategies that
experience relatively minor price fluctuations,
such as short-term fixed income funds and money
market funds |
|
| Conservative |
|
Average Annual Return
(1982-2001) 10.39%
Best year: 21.81%
Worst year: (1.25%)
|
 |
|
For investors who want current income and stability
and aren’t concerned about increasing the
value of their investments.
|
|
| Moderately
Conservative |
|
Average Annual Return
(1982-2001) 10.90%
Best year: 26.09%
Worst year: (1.49%)
|
 |
For
investors who want current income and a stability,
with some increase in the value of their investments.
|
|
| Moderate |
|
Average Annual Return
(1982-2001) 11.42%
Best year: 29.71%
Worst year: (6.60%)
|
 |
| For investors
who don’t need current income and want reasonable
but stable growth. Some fluctuations are tolerable,
but they want less risk than the overall stock market. |
|
| Moderately
Aggressive |
|
Average Annual Return
(1982-2001) 11.86%
Best year: 33.33%
Worst year: (11.70)%
|
 |
| For long-term
investors who want good growth and don’t need
current income. A fair amount of risk is acceptable,
but not as much as if they invested exclusively
in stocks. |
|
| Aggressive |
|
Average Annual Return
(1982-2001) 11.69%
Best year: 34.66%
Worst year: (15.76
|
 |
| For long-term
investors who want high growth and don’t need
current income. Substantial year-to-year volatility
in value is acceptable in exchange for a potentially
high long-term return. |
|
Returns
shown are reflective of the following indices:
3 month T-Bill (Capital Preservation)
LB Aggregate Bond Index (Bonds)
MSCI EAFE Index (International)
BARRA Value (1/2 Large Company Stocks)
Russell 2000 (1/2 Large Company Stocks)
Russell 2000 Growth (Small Company Stocks) |
Style
Conversion
Capital Preservation = Schwab Value Advantage Fund
Bonds = PIMCO Total Return Fund, (can also use
Invesco Real Estate Fund)
International Stocks = Europacific International
Growth Fund
Large Company Stocks = Schwab Value Advantage Fund,
Credit Suisse Capital Appreciation Fund
Small Company Stocks = Vanguard Total Stock Market
Index, Franklin Small Growth Fund
The Dodge & Cox Balanced Fund can be used as
a Large Company Stock / Bond Fund |
|
|
