It's all about balance
Whatever you hope to achieve in your financial journey, balance is key to making those goals a reality. Take a look to see how you too can achieve balance as an investor.
Let’s talk about balance. We all try to achieve it, but sometimes it’s easier said than done. Whether it’s in your financial journey or your personal life, Vanguard wants to help you find and maintain balance.
Think of your goals and what’s most important to you in the long run—whether it’s owning a home, traveling the world, or saving for retirement. Keep your long-term goals in mind, and focus on the road that lies ahead.
Staying on top of your asset allocation—or how your investments are divided among different assets—can help keep you on track and is completely personal to you. For your short-term goals, consider saving with cash and investing in short-term bond funds and money market funds. For your long-term goals, consider target-date funds and stock funds that can grow with you and may offer stronger long-term returns when you’re ready to retire.
Next, let’s talk about balancing the “D” word: debt. It can sound scary, but it’s not all bad! There’s such a thing as good debt, and it can take the form of a mortgage on a house or something that will increase in value. Other forms of debt can look like too many credit cards or high-interest debt, which is why it’s important to try to pay off your credit cards every month.
And even though saving for the long term matters, remember to treat yourself every now and then.
Above all else, balance your mental health with saving for tomorrow. Don’t forget to stop and breathe.
Finding the right balance is key
All investing is subject to risk, including the possible loss of the money you invest. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
Bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
Investments in target-date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a target-date fund is not guaranteed at any time, including on or after the target date.
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