The first step toward reaching your financial goal is making sure that you have the right asset allocation, which is a mix of stocks, bonds and short-term reserves that fits your investment time horizon, risk tolerance, and other factors. If you do not already have an investment strategy—that is, an asset allocation that fits your particular situation—begin by completing the Investor Questionnaire. The questionnaire gives you a good idea of how to invest your money by suggesting asset allocations based on your investment time horizon, goals and risk tolerance.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments.

All investing is subject to risk, including the possible loss of the money you invest.