Conservative Growth

You’ve got a lot of money, and you want to make your pot of money even bigger. So you consider using something called a “conservative growth” strategy. The goal is to build wealth over time, with an emphasis on “wealth preservation.”

This is where the debate starts among pundits on what is actually a “conservative growth” strategy. The basic strategy has been an allocation of 60% in bonds and 40% in stocks. But anyone paying attention to 2008 knows what can happen.

If you want to preserve money, the purest way is just to index your money to inflation and get a return on Treasury bonds. But...what's the point of that?

So you’ll see a lot of financial companies create “conservative growth funds.” And these funds charge annual fees that eat into the return. The funds basically build a portfolio of bonds and stocks.. people could have just as easily learned the strategy and built the portfolio by hand in a matter of 20 minutes. Sounds like a plug for a trading course.