Building your Growth Portfolio (accumulation)
- Objective: long term growth, diversification, low cost, and tax efficiency
- Strategy: seek higher returns by focusing on controllable factors (expenses, portfolio rebalancing, dollar cost averaging, and tax efficiency)
- Typical Investments: Exchange traded funds (ETFs), mutual funds
- Fund Families: Vanguard, iShares
Building your Income Portfolio (when predictable income is needed)
- Objective: predictable income, asset protection, growth potential, flexibility, liquidity
- Strategy: Employ a hybrid approach to deliver the best of pension-like income, along with the higher return potential of a traditional portfolio.
- Begin by carving out specific portfolio assets toward a low risk strategy, which delivers consistent income over your chosen time horizon, regardless of how the market performs.
- Remainder of portfolio is invested in a broadly diversified stock growth strategy to replenish the income portion over time.
- Typical Investments: Individual bonds, certificates of deposit (CDs) and other low-risk investments, along with ETFs, mutual funds, individual stocks
- Fund Families: Dimensional, Vanguard, Fidelity, iShares