The old rule of thumb used to be that you should subtract your age from 100, and that's the percentage of your portfolio that you should hold in stocks. For example, if you are 30 years old, you should keep 70% of your portfolio in stocks. If you are 70 years old, you should keep 30% of your portfolio in stocks. An income portfolio consists primarily of dividend-paying stocks and coupon-generating bonds.
If you are comfortable with minimal risk and have a short to medium investment time horizon, this approach can be tailored to your needs. Please note that depending on the account, dividends and refunds may be taxable. A growth portfolio consists mainly of stocks that are expected to appreciate, taking into account long-term potential and possible large short-term price fluctuations. An investor looking for this portfolio has a high risk tolerance and a long-term investment time horizon.
Generating current revenues is not a primary objective.
