Asset allocation and risk versus return
Asset allocation is how you split money between stocks, bonds, cash and other assets. Investor.gov calls it one of the most important decisions you make, because it shapes both returns and swings.
Risk and return go together
- Higher expected returns come with bigger possible losses.
- Cash and Treasury bills: low risk, low return.
- Bonds: in between, depending on issuer and term.
- Stocks: highest long-run return, largest swings.
For the income part
IncomeGrid shows a risk level 1–5 next to every yield, so the trade-off is visible. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
Explore by risk level
IncomeGrid has 40,000+ investment options screened.
Sources
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