In general, stocks have greater potential for growth and total return compared to bonds. On the other hand, bonds offer greater potential for stability and income compared to stocks. For this reason, most financial advisors agree that a portfolio more heavily weighted with stocks is more “aggressive” and one with more bonds is more “conservative.”
Review the different types of portfolio mixes:
|Type of portfolio||Mix of stocks and bonds|
|Moderately conservative||40% stocks
|Moderately aggressive||80% stocks
Note: Ask an investment professional to help you create a portfolio that best meets your goals, timeline, and risk tolerance.
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