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Investing Specialists

Top Picks for a Worrywart Portfolio

If you're the nervous type, these sleep-easy, Gold-rated funds could suit.

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As you put together your portfolio, it's important to distinguish between short-term volatility and shortfall risk, and to know which one is the bigger foe.

The former is the inevitable side effect of investing in stocks and, to some extent, bonds. Long term, markets will go up at times and down at others. What's really important is that during a reasonably long period of time, your well-diversified basket of long-term securities ends higher than where it started. Shortfall risk--the possibility that you won't have enough money by the time your goal date rolls around--is obviously a much bigger concern than market fluctuations.

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Christine Benz has a position in the following securities mentioned above: TBGVX. Find out about Morningstar’s editorial policies.