Strategy Intermediate: How to Invest for Intermediate-Term Goals

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1.
What is the best investment option for the growth portion of an intermediate-term portfolio?
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A large-cap blend fund. Mutual funds offer instant diversification, and large-cap blend funds invest in the core of the U.S. market and include value and growth stocks among their holdings. They are steadier than most other types of stock funds.
2.
Which element is perhaps the most important for intermediate-term investors?
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Diversification. Intermediate-term goals require a certain amount of growth without volatility, which can ruin the growth. Thats why intermediate-term goals tend to include a balance of volatilities in their investments.
3.
What is the typical allocation of balanced funds?
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60% stocks and 40% bonds. Balanced funds are typically weighted a little toward stocks.
4.
Intermediate-term investors are usually advised to _______.
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Use stocks to grow their money and bonds to protect what they make. This is a good balance for many intermediate-term goals.
5.
Intermediate-term investing begins with _______.
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Determining your goals and what theyll cost. As with long-term investing, intermediate-term investing revolves around goals and their costs. Choosing the right investment is secondary.