Getting Started (Part 3) – Allocating to Stocks and Bonds with NoLoad FundX

January 29, 2013

Many investors use a New Year as a time to get their investments in order. To help, we’re launching a series of posts to help investors who are just getting started with a new investment program. So far, we’ve looked at the importance of having a plan, and why investors need stocks, bonds and cash. This week, we help investors allocate their portfolios to stocks and bonds.

Investors who hold balanced portfolios of both stocks and bonds may be better able to stay invested over the long term because stocks offer the best potential for growth and bonds can help buffer the volatility of stocks.

Investors who subscribe to NoLoad FundX can create balanced portfolios of leading stock and bond funds using NoLoad FundX’s model equity and fixed income portfolios: the Monthly Upgrader Portfolio and the Monthly Flexible Income Portfolio.

Both portfolios aim to take advantage of changing markets: the MUP shifts allocations based on changing stock markets and the MFIP changes allocations based on changing bond markets. And both are easy to follow: each month, we tell you exactly what funds to buy and what funds to sell.

Below, we show different allocations to the MUP and MFIP.  We don’t advocate one allocation to all investors because asset allocation isn’t one-size-fits-all. Your exposure to equities and fixed income depends on how long you expect to be invested, as well as how much risk you can handle. Whatever allocation you choose, be sure to revisit your allocation as time passes. Your portfolio mix should change as you get closer to when you’ll be using the money you’ve invested.

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