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  • Tax Increase Prevention & Reconciliation Act of 2005 and 401k Retirement Plans
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    Capital Growth Strategy - 401k Glossary

    Capital growth strategy is the efforts made to maximize the value of capital assets so that they appreciate (go up) in value and can be sold for a profit. These efforts are made over the long term.

    A typical High Returns and Low-Medium Risk Capital Growth Portfolio looks like this:

    Capital Growth Portfolios
    60% -70% Equity Investments
    20% -30% Stable Fixed Income Securities
    0% - 5% Money Market Securities

    On the other hand, a high risk capital growth portfolio would consist mostly of 100% equity investments that could generate huge positive returns over the long term, or plunge in value (great risk).

     

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