Model Portfolio Guide

Determining what to invest in can be challenging for even the most seasoned investors. Get our free model portfolio guide and get a handle on your level of risk

Model Portfolio Guide photo of man jumping across two boulders with expanse of mountains in background.

What You Need to Know About Each Model Portfolio

When the market is relatively stable, the brain generally resides in a relaxed state. When the market is volatile, the brain elevates to a scared or even angry state. These elevated states make it difficult for investors to keep from inflating possible risks and dangers through a variety of cognitive biases.

Even savvy and experienced intelligent investors who have a good understanding of investing principles may begin to make rash decisions during periods of market volatility. Along with a variety of cost benefits of working with a professional financial advisor, one of their objectives is helping you manage these innate tendencies and behaviors.

Risk-Taking and Risk-Aversion

There are many layers that help define the psychology behind risk-taking, risk-aversion, and investment behavior. These layers can include perceptions, intuition, personality, and emotions. Any combination of these characteristics can influence our level of risk-taking in some way. With a short assessment, you can get your risk number to see if your portfolio matches your risk tolerance.


Knowing the amount of risk you are comfortable with will help determine the asset allocation of your portfolio. For our purposes, there are eight portfolio models*: Primarily Fixed Income, Balanced Fixed Income, Balanced Equity, Primarily Equity, Equity, Balanced Fixed Income with Alternatives, Balanced Equity with Alternatives, and Primarily Equity with Alternatives. Here’s a look at each:

Model Portfolio - Primarily Fixed Income Chart Balanced Fixed Income Balanced Equity Primarily Equity Model Portfolio - Equity Chart Balanced Fixed Income with Alternatives Chart Balanced Equity with Alternatives Chart Primarily Equity with Alternatives Chart

We all know there is a lot of misinformation on the web.  That’s why, as part of our GWA Gives© program dedicated to helping others, we believe in sharing free material so people have a trusted source to rely upon.

While these approaches to investment can be complicated, we will be happy to answer any questions you might have about our model portfolio guide.  You can reach one of our convenient offices listed on the Contact Us page or by filling out the chat form below.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

*Allocations are as of January 25, 2021, and are subject to change.
Investments in fixed income and equity securities are subject to the following principal investment risks: the risk that the price of securities may decline in response to general market and economic conditions or events, as well as investment rate risk, or the risk that the issuer’s earnings prospects and overall financial position will deteriorate, causing a decline in the security’s value over short or extended periods. Mid‑ and small‑cap investments may be subject to additional risk due to reduced market share. International investments are subject to certain risks, such as currency fluctuations, economic instability, and political developments not present with domestic investments. Emerging market investments can offer higher potential returns to long‑term investors but also carry higher risk. Emerging market investments entail higher political and liquidity risks than domestic investments and, as such, may be more volatile. Currency risks also affect emerging market investments. REITs, which own real estate, are subject to a number of risks, including possible declines in the value of real estate, risks related to economic conditions, possible lack of availability of mortgage funds, overbuilding, extended vacancies of properties, and dependency upon skills of the management of REITs. The return and principal
value of any investments in securities may fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Fixed income investments are subject to interest rate risk and prepayment risk. Bond values may change due to current interest rate changes and are subject to the risk that the issuer may default. An investment in the money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. Asset allocation programs do not assure a profit or protect against loss in declining markets. No program can guarantee that any objective or
goal will be achieved.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA / SIPC, a Registered Investment Adviser. Financial planning services offered through Global Wealth Advisors are separate and unrelated to Commonwealth. Global Wealth Advisors, 4400 State Hwy 121, Ste. 200, Lewisville, TX 75056. (972) 930-1238.

Learn about our 3P Approach© to financial planning

Read More