The following are seven asset allocation models for long-term investment planning. These models generally coincide with the way most individual investors characterize their objectives.

• Capital Preservation: Investors in this risk category want to maintain capital. Adjusted for inflation, investment returns may be very low or, in some years, negative, in exchange for very high liquidity and essentially no risk of principal loss.
• Income: Investors in this risk category are willing to absorb some risk of principal loss in order to satisfy current yield requirements. Objective is to obtain a continuing income stream from dependable debt and equity sources.
• Income / Growth: Investors in this risk category accept possible principal loss as a natural function of investment risk incurred in the pursuit of higher total return. Objective is to strike a balance between bonds for current income and stocks for growth. The degree of risk is normally reduced through diversification and asset allocation and periodic revisions to rebalance any excesses that develop.
• Growth: Investors in this risk category are willing to take risk, both in the types of securities held and in the concentration of holdings in favored market sectors. Objective is to accumulate wealth, over time, rather than current income. More active portfolio adjustment is a typical feature of this type of investor's behavior.
• Aggressive Growth: Investors in this risk category typically are willing to sustain more in the way of losses on individual transactions in expectation that overall portfolio results in the balance of their holdings will produce above average annual total returns. Objective is to achieve above-average growth over time; income is of little concern. Investors in this category may experience a wide variance in results from one year to the next in the pursuit of longer-term goals.
• Equity: Investors using this allocation model seeks to invest in a portfolio of equity investments. These investors should understand that investing in only one asset class typically increases risk and that sector and security diversification should be used to help reduce that risk.
• Debt: Investor using this allocation model seeks to invest in a portfolio of fixed-income investments. These investors understand that investing in only one asset class typically increases risk and that sector and security diversification should be used to help reduce that risk.