Just a the food pyramid suggests a well- balanced diet, the portfolio pyramid covers the components of a healthy, balanced investment portfolio.

The foundation of the portfolio pyramid is asset allocation, which determines the broad risk level of your portfolio to match your risk profile.

Schawb’s model asset allocation plan:

  • Conservative
  • Moderately conservative
  • Moderate
  • Moderately Agressive
  • Agressive.   

Once you’ve diversified across asset classes, you can start diversifying within asset classes.

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