Select My Target Model

To help you select a target model, this article provides key information including the best and worst returns for each model at different intervals and the risk and return associated with the different target models and market segments.

How Do You Know Which Target Model is Right for You?

The target model you select depends on your time horizon and your level of risk tolerance. If your investment strategy is based on a longer time period, you may feel more comfortable taking on higher levels of risk in exchange for the potential to see greater returns. This type of strategy relies on having the time to wait out near-term fluctuations in the market in hopes of profiting over time. If that's the case, the aggressive and growth target models may have more appeal to you. On the other hand, if you're nearing retirement or are using a short-term investment strategy, you might be interested in more risk-averse target models that don't rely on waiting out near-term market fluctuations.

Another factor to consider while you're determining your level of risk tolerance is the events taking place in your life. Buying a home, having children and saving for college are just a few examples of life events that can have an impact on your risk tolerance.

Risk and Return Characteristics for Each Model

The PDFs below show historical performance data for each target model over different time periods to illustrate the risk and return characteristics associated with the different models. When you'e selecting a model, it's important to consider how you're balancing risk and return based on your investment objectives and strategy.

Target Model Comparison (PDF)

Conservative Model (PDF)

Balanced Model (PDF)

Moderate Growth Model (PDF)

Growth Model (PDF)

Aggressive Model (PDF)

When you've found a model that's right for you, click the Select Model button. Remember that target models help you determine the way your assets are divided across the different market segments - or your asset allocation - and that this is only the first step to diversifying your portfolio. Once you've selected a target model, your second step will be to make sure there's investment variety within each market segment.

Next Step: Setup Allocation

Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market.

The analytical tools described in this article are for information purposes only and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision.