Model Portfolios

Model Portfolios

Moderate Income

Moderate Income investors seek income consistent with a modest degree of risk. They are willing to accept a moderate level of income (typically higher than CDs or money market rates) in exchange for moderate risk. Equities will typically be a small percentage of the portfolio (dividend-paying stocks). Bonds purchased will not be rated below BBB- at the time of purchase, and, will generally be shorter in maturity (1 to 5 years) although intermediate and long-term maturities may be purchased. Moderate Income investors generally are not concerned with keeping pace with inflation. Note, there is risk of loss of principal, perhaps substantial loss, in stocks, bonds and in real estate investment trusts.

Target Portfolio Allocation: 20% to 35% dividend-paying stocks, 65% to 80% corporate bonds and/or cash equivalents. Also, some Moderate Income investors may have bond-only portfolios with no stock exposure.

Moderate Growth & Income

Moderate Growth & Income investors seek to balance potential risks with the goal of moderate growth and income. Equities may represent approximately 50% or more of the portfolio, assuming the stock dividends are sufficient to help meet the Client’s income needs. Bonds purchased will not be rated below BBB- at the time of purchase. Also, bonds purchased may be invested in intermediate on longer maturities to create higher income. Note, there is risk of loss of principal, perhaps substantial loss, in stocks, bonds and in real estate investment trusts.

Target Portfolio Allocation: 40% to 65% dividend-paying stocks, 35% to 60% corporate bonds and/or cash equivalents.

Long-Term Growth & Income
Long-Term Growth & Income investors seek a significant level of growth and income, and their risk tolerance allows them to employ higher risk and more aggressive strategies that may offer higher potential returns (with the risk of substantial loss). Equities are typically the primary asset in the account and will generally pay dividends. If bonds are purchased they will not be rated below BBB- at the time of purchase. Note, there is risk of loss of principal, perhaps substantial loss, in stocks, bonds and in real estate investment trusts.

Target Portfolio Allocation: Up to 100% stocks. There may also be a fairly sizeable allocation in corporate bonds, up to 30% or more, depending on prevailing interest rates and other factors.

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