Strategy Intermediate: How to Invest for Intermediate-Term Goals

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1.
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.
2.
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.
3.
What does a balanced fund own?
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A balance of stocks and bonds. The typical balanced fund invests about 60% of its assets in stocks and 40% in bonds.
4.
Why may balanced funds not be the ideal choice for intermediate-term investors?
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Both of the above. You can often buy a short-term bond fund and a large-blend fund and pay less in annual expenses than if youd just bought a balanced fund. And some balanced funds may hold more in bonds than some in-betweeners need.
5.
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.