At Guideline, we make choosing an investment portfolio simple.
When you first enroll, you’ll find that we’ve recommended a professionally managed portfolio that’s specially tailored to you. You have a few options:
- Stick with our professional portfolio recommendation
- Select any of our other managed portfolios
- Customize your own portfolio using our broad selection of low-cost index mutual funds
Factors To Consider
Our portfolio recommendations are based upon a few key factors that you’ll need to consider.
Time Until Retirement
The first factor to consider in selecting your investment portfolio is your estimated time until retirement. In general, the more time left until you retire, the more your investments should be allocated towards riskier, more aggressive securities with higher long-term reward potential. The less time you have until retirement, the more your investments should be allocated towards more conservative and less volatile funds. These more conservative funds are less likely to grow as much as aggressive funds, but are more resistant to any dips in the market that might suddenly reduce your retirement savings.
This means that as you grow older and approach retirement, your portfolio should grow more conservative so that your funds will be fully accessible during retirement. Luckily, Guideline will automatically adjust your managed portfolio for you, with your permission, or you can change it yourself at any time!
Emotional Risk Tolerance
After considering time until retirement, it’s also important to take into account your emotional risk tolerance. Retirement saving shouldn’t be stressful. If your personality is prone to worry over dips and changes in the market, you might choose a slightly more conservative portfolio for the sake of your emotional well-being. Guideline always takes your risk tolerance into account, even when reallocating your investments over time as you age. It's important to be honest with yourself and choose the portfolio that's best for you.
The Guideline Advantage
If you decide to take advantage of one of our managed portfolios, you can feel confident knowing that, whichever portfolio you choose, Guideline will take care of everything from managing to rebalancing your portfolio. So, sit back and enjoy watching the savings pile up with your professionally managed Guideline portfolio.
Want more information about our different portfolios? Check out our article "What’s the difference between Guideline Portfolios?".