Short-term: For goals with a term of less than three years, you generally don't invest in the traditional sense. You save for them. For example, if you're saving for a down payment on a house, you'll want to put your money in a safe place that will be available when you're ready, without loss of principal. Consider six- or 12-month CDs, though you'll pay a penalty to access your money early; FDIC-insured high-interest-earning money market or savings accounts; low-cost money market mutual funds; or stable value funds. Find the best rates for these types of deposits on Bankrate's rate tables.

Intermediate-term: These goals are five to 10 years away. The key here is diversification. Look at keeping a small portion in higher-yielding money market accounts and CDs, and include Treasury securities, short-term to intermediate-term bonds or bond funds. If your time line extends beyond five years, some equity exposure may be appropriate -- perhaps an index fund, which tends to be more tax-efficient than other funds, if this money is in a taxable account. Consider allocating a small portion to an international stock fund if you want to take on a little more risk.

Long-term: Depending on your risk tolerance, most people should be able to handle a bit more volatility in their portfolio; the alternative is to risk falling short of your goal. For goals beyond 10 years, a 70 percent allocation to equities might be appropriate because you'll need growth. Conservative investors nearing the 10-year mark may want to invest in a mixed stock and bond portfolio.

See examples of asset allocation charts in Bankrate's story, "Building a portfolio."