Strategy Intermediate: How to Invest for Intermediate-Term Goals

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1.
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.
2.
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.
3.
What does the "blend" in large-cap blend funds refer to?
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Growth and value stocks. "Blend" is a recent term coined for those funds that include both growth and value stocks.
4.
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.
5.
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.