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Investment Inventory Checklist
Use this checklist to assess your current investment choices. You may want to complete more than one checklist - for example, one for your employer-sponsored plan or IRA investment choices, and a separate one for all your other investment accounts. Once all information is recorded, ask yourself:
- Am I diversified? Yes, if your investment choices are scattered across different asset classes.
- Have I strategically allocated? Yes, if 30-60% of your investments are in one asset class. However, be sure this asset class is in keeping with your primary goal. For example, once in retirement many people focus on stability of principal, income, or growth & income.
- Is risk appropriate? Yes, if the majority of your investments are in an asset class closest to your risk preference. It's okay to have a minority of investments in asset classes that are riskier or less risky than you prefer for balance.
If you are not diversified, not strategically allocated, or are exposed to too much risk, read the description of each asset class. Find the one that is the best match with your interests and risk tolerance. This is where you will want to put a good portion of your money, but not all of it.
| Asset Class |
Your Investments |
Allocation |
Bonds:
- Conservative to moderate to aggressive relative risk rating
- Objective of income; growth of income
- Investment in junk bonds, international bonds, corporate bonds, government bonds
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Asset Allocation :
- Blended risk based, adjusted performance
- Objective of long-term growth, growth and income
- Investment in aggressive stocks, international stocks, large-company stocks, government bonds, foreign bonds, or money markets
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Balanced:
- Moderate relative risk
- Objective to 'balance' growth of principal and current income
- Style of 'domestic hybrid'
- Investment in combination of stocks and bonds
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Large Cap Value :
- Moderate relative risk
- Objective of long-term growth
- Style of value or blend
- Investment in stocks of larger, mature companies
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Large Cap Growth :
- Moderate to aggressive relative risk
- Objective of long-term growth of capital
- Style of growth or blend
- Investment in stocks of larger US companies
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Small/Mid/Specialty:
- Highest relative risk of "agressive"
- Objective of capital appreciation
- Style of growth, value or "blend"
- Investment in stocks of small and medium-sized companies
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Global/International:
- Highest relative risk rating of "aggressive"
- Objective of greater diversification
- Style of foreign stock; global funds style of world stock
- Investment in stocks of companies outside of US
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Stability of Principal:
- Conservative relative risk rating
- Objective of holding principal value stable through all market conditions
- Investment in money market portfolios
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