Set a Target Asset Mix
Evaluate whether a portfolio's asset allocation is appropriate for its investment horizon — and explain how and why the mix should shift from growth-oriented to stability-oriented as retirement approaches.
In this lesson
Set a Target Asset Mix is part of Building Wealth Across Life Stages. This preview shows how wealth-building connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Ngozi is 28 and reviewing her investment portfolio. It is 90% shares and 10% bonds. She plans to retire at 60.
How it works
A portfolio's asset mix — the proportion held in equities, bonds, cash, and other assets — should evolve as the investor ages. Younger investors with long time horizons can tolerate higher equity allocations (higher risk, higher potential return) because they have time to recover from downturns. As retirement approaches, the allocation should shift toward more stable, lower-volatility assets to protect the accumulated wealth from a large loss close to the point of withdrawal.
Apply it to a real decision
Real-life money moment: Ngozi is 28 with a retirement target at 60 — 32 years away. Her current portfolio is 90% equities and 10% bonds. This is appropriate: she has decades to recover from any market downturn, and the equity weighting maximises long-term growth potential. At 55 — five years from retirement — the same 90/10 split would be inappropriate. A major market correction at 55 could devastate the portfolio with no time to recover.
Activity preview
Connect the ideas
Use the lesson to complete this short practice activity.
Practice adding money to savings
Open Requests and make a deposit request into savings so you can see how saving starts. Parent approval can happen later.
Quiz preview
Setting a target asset mix means:
A target asset mix of 60% shares 30% bonds 10% cash means: