How do I choose the right type of portfolio solution for me?
Portfolio solutions offer two distinct ways to maintain the right balance of risk and reward for you:
Target risk
These portfolios are designed around different levels of risk. For example, if you are willing to give up some potential return for a smoother ride when you invest, you’d likely be invested in a portfolio with lower risk. If you are comfortable with more volatility in return for pursuing higher potential returns, you’d likely be invested in a more growth-oriented portfolio. Whatever type of investor you are, your target risk portfolio will be designed and managed to keep the portfolio’s level of risk within the limits you prefer.
Target date
These portfolios are organized around a target date to reach a goal. For example, if you’re saving for retirement, you choose the approximate year you will retire. If you’re saving for a child’s education, you choose the year they are likely to graduate from high school.
Your investment mix will be automatically adjusted as you come closer to your target date. In general, this means early on your portfolio will focus on growth. You will also have more exposure to risk, but if markets drop there is more time to recover. As you approach the date you will need your money, your portfolio will make a gradual shift to lower risk investments to help preserve your investment and avoid losses.
Learn more or talk to your financial advisor