Unfortunately, choosing a good plan in which to invest your retirement money can be a difficult process. A risk - return pyramid is used by investment professionals to illustrate the fundamentals of sound investing. In it, the base of the pyramid is comprised of relatively safe, conservative investments. This solid financial base leaves the balance of your assets free for pursuing more aggressive investment growth opportunities. Best of all, any fluctuations in the value of those more aggressive assets should not destabilize your overall portfolio.
Different investors have different investment objectives.
So, to help you meet your individual financial goals, select a variable annuity that offers a wide selection of portfolios for long-term stability and performance. In addition, choose a variable annuity that offers a range of subaccounts from guaranteed, fixed interest accounts to very aggressive growth funds. In determining where to invest your money and select the subaccounts to reach your investment objective you need to make a critical assessment in what type of investor you are. Conservative - This type of investor is focused on stability with accepting only minimal risks to principal. Typically this portfolio is heavely invested in Short Term Money Market Instruments, Bonds and some Larger-Cap Funds.