Investment Allocation

  • Updated

No investment strategy will be perfect for everyone; we all have different lives, plans, and goals. One important way you can adjust your investment strategy to meet your goals is to adjust the allocation of your investment types. That’s why the Investment tool includes an allocation tool that gives you a simple visualization of your current allocation, allowing you to understand your investments and adjust them as necessary.

10I2_Allocate-Investments.gif

The percentage of different kinds of investments you own can have a profound effect on what kind of return you get in different economic conditions. Is it better to have more stocks or more bonds? Should you invest in U.S. stock or international stock? Should you have more or fewer cash investments like certificates of deposit or money market accounts?

 

Investment experts often break down allocations into three broad strategies:
conservative, moderate, and aggressive. A conservative approach is less risky, but may not bring the highest returns. An aggressive approach may bring higher returns, but is more risky.

ℹ️ — In the allocations below, the “other” group refers to investments like private equity funds, hedge funds, real estate investment trusts, derivatives, or other less-common types of holdings.

Conservative:
● 19% U.S. stocks
● 6% international stocks
● 55% bonds
● 7% cash investments
● 13% other Moderate:
● 38% U.S. stocks
● 18% international stocks
● 30% bonds
● 2% cash investments
● 12% other

Aggressive:
● 58% U.S. stocks
● 30% international stocks
● 0% bonds
● 2% cash investments
● 10% other
To view your allocation:
● Click on the “Allocation” button on the top left.
○ The allocation wheel will appear on the left, with a list of investment categories on the right.
To see a list of each holding in a given investment category:
1. Hover over a piece of the investment wheel to see the amount you have invested in that category; mceclip1.png
○ Alternatively, hover over the desired investment category on the right.
mceclip2.png
2. Click on a piece of the investment wheel to being up a list of holdings in that investment category;
○ Alternatively, click on an investment category on the right.
3. Hover over a holding’s symbol to see the size of that holding; this is also listed on the right. You can view your allocated holdings in terms of dollar amounts or as a percentage of your total investments. The default is dollars.
To toggle between dollars and percentages:
1. Click the “%” button on the top right above the list of holdings types.
2. Click the “$” button to return to dollars. By default, all your connected investment accounts are included in the investment wheel. You can, however, choose to display one account at a time.
mceclip3.png
To change the account displayed in your investment wheel:
1. Click on the “All Investment Accounts” dropdown menu at the top.
2. Chose the account you would like displayed in the investment wheel; all other accounts will be excluded.
3. Choose “All Investment Accounts” on the dropdown to display all your accounts again.

 

ℹ️ — Disclaimer: The functionality of this software varies depending on which financial institution you use. Not all content in this guide will apply to your MoneyMap experience.

Was this article helpful?

Comments

0 comments

Please sign in to leave a comment.