The Asset Allocation Puzzle

Investment planning doesn’t end with your knowledge of stocks, bonds, and cash. The biggest decisions will actually have to do with how you allocate your assets to different investment categories, according to Morningstar. How do you make those decisions? Consider the following, explained in greater detail in our full article that you can download.

Your Goals
How much you allocate to certain categories can depend on whether you’re saving for retirement, education, or a vacation home or travel.

How Much Time You Have
If you have a short investment horizon, you’d probably want to allocate assets to a conservative portfolio. For a long-term horizon, a more aggressive investment could be in order.

Your Risk Tolerance
How much do large fluctuations in your portfolio’s value affect your nerves? Morningstar suggests you be comfortable with your investments.

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