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Chapter 12. Looking for Mr. Goodfund > Matching Your Investment Goals to Invest... - Pg. 119

Looking for Mr. Goodfund 119 Many employers provide their employees with a wealth of information about their 401(k) investments. If you read all the information provided, this chapter may not be necessary. The problem is, most of us do not read what is good for us. (Guess we do the same with food.) Knowledge takes a little bit of work, and you should look to better your knowledge of investments wherever you can. Matching Your Investment Goals to Investment Types By following our guidelines in this table, you should be able to organize your 401(k) funds by level of "risk." Fund Category Safety · Treasury bills · Money market · Short-term government · Short-term bond Fixed-Income · Guaranteed investment contracts (GIC) · Mortgage-backed securities · High-quality intermediate bond · High-quality long-term bond · High-yield intermediate bond · High-yield long-term bond Asset Allocation More than five years Medium-term (three to five years) Time to Goal Short-term (within three years) Primary Risk Inflation risk