Portfolios must change over time to reflect an investor's needs and goals, but selecting, rebalancing and keeping up the proper mix of investments can be time-consuming and confusing for many individuals. Asset allocation funds aim to accomplish the dual goals of creating diversification and meeting growth or income needs in one fund.

But, as with any investment, these aren't meant to be put on autopilot. Investors still have to watch the performance of the fund, even if the portfolio was constructed to meet risk tolerance or a target retirement date.

There are several different types of asset allocation mutual funds, but the most common are referred to as life-cycle funds and lifestyle funds:

● Life-Cycle: Created with a future date in mind, the portfolio rebalances to become more conservative as the investor gets closer to the target date.
Lifestyle: A portfolio of cash, stocks and bonds that remains fixed and is designed to meet the risk tolerance of the investor.

● Life-Cycle: Target Date Funds

Life-cycle funds are created with a specific future date in mind, such as retirement. "For example, a 2030 target date would mean the investor expects to retire in that year," says Kevin Morris, director of

LOS ANGELES (Reuters) - Starbucks Corp said on Wednesday it would slash U.S. coffee store openings through 2011 to cut costs in the face of weak U.S. sales and to focus more on growth abroad.

The company, which warned last week of the worst economic environment in its history, said U.S. customer visits had slowed but estimated growth in international business profit margins over the next few years.

Investors and analysts have been pushing for Starbucks to cut plans for U.S. expansion.

"It's not really surprising that they've slowed their store growth. The fact that they are making plans to slow it is certainly better than what they were telling us before," said John Langston, an analyst at Hodges Capital Management.

On Wednesday, the coffee shop chain posted fiscal second-quarter net income of $108.7 million, or 15 cents per share, compared with $150.8 million, or 19 cents per share, a year earlier.

Results from the most recent quarter included restructuring-related charges of about 3 cents per share.

Prior to its warning last week, analysts had been looking for a second-quarter profit of 21 cents per share. The results matched lowered estimates, according to Reuters Estimates.

Total revenue rose 12 percent to $2.53 billion. The company said revenue was lower than expected due

WASHINGTON (AP) -- The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses alike to hunker down.

The country's economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday. The statistic did not meet what economists consider a definition of a recession -- which is a contraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if slightly.

Many analysts were predicting the gross domestic product (GDP) would weaken a bit more -- to a pace of just 0.5 percent -- in the first quarter. Earlier this year, some thought the economy would actually lurch into reverse during the opening quarter. Now, they say they believe that will likely happen during the current April-to-June period.

"The economy is weak but not collapsing," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "A recession can't be ruled out, although the stars are not lined up at this point to definitively say one way or the other."

On Wall Street, the Dow Jones industrials closed down 11.81 points.

Gross domestic product measures the value of all goods and services produced within the United States

WASHINGTON (AP) -- Scrambling to shore up the faltering economy, the Federal Reserve cut interest rates to the lowest point in nearly four years Wednesday as the nation teetered on the edge of recession.

Wall Street rallied at first but then pulled back, concerned that the reduction might be the last for a while.

In fact, the Fed's trim was smaller than those of recent months amid indications the central bank might pause to see if months of powerful rate-cutting medicine and billions of dollars in stimulus checks will be enough to lift the country out of its slump.

Chairman Ben Bernanke led a divided Fed, in an 8-2 vote, in slicing its key rate by one-quarter percentage point to 2 percent.

In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Both rates are the lowest since late 2004.

The Federal Reserve, which has been dropping rates since last September, turned much more forceful early this year when housing, credit and financial problems worsened. Rate reductions in January and March alone marked the most aggressive intervention in a quarter-century in an effort to re-energize consumers and businesses.

"The substantial easing of monetary policy to date ... should help to promote moderate growth over time