Cautious Growth Strategy

This Strategy is for people who have a pretty high tolerance for risk. You should be certain that you won't need to use this part of your retirement account during the next 5 years, preferably longer. Also, you should be ready to accept occasional losses with patience and a willingness to stick with the Strategy. This Strategy aims to cut down some of the short-term loss potential of the stock market, while retaining much of its growth potential. We do that by shrinking the size of that stable-value "safety cushion" to about one third of the total fund. That is too small to prevent significant losses, but it's large enough to take some of the sting out of them. The other two-thirds of this Strategy are invested in the same mix of technology, drug/medical product and consumer growth stocks that you saw in the Limited Risk Strategy.

Our current investments are approximately as follows. These are only general guidelines for us; not a formula to be precisely matched. We seldom change these very much, unless there is a dramatic change in fund management style.

30% Federated Capital Preservation Fund
30% Vanguard Growth Index Fund
20% Fidelity Select Technology Fund
20% Vanguard Health Care Fund

The past performance figures of the Cautious Growth Strategy are only useful as illustrations of the relative return rates among Strategies with different risk levels, rather than as guides to future returns.

Fund Results

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