What’s the Right Asset Allocation?December 1, 2016 | Retirement Education
It’s an age-old dilemma for investors. What’s the right mix of stocks, bonds and cash equivalents for your retirement plan portfolio? You may want to find a balance between financial stability and potential growth.
An asset allocation strategy can help you determine the combination of stocks, bonds and cash equivalents that reflects your needs and personality as an investor. How you divide your investments among these three major groups of assets could be one of the most critical investment decisions you’ll ever make.
You may want to find a balance between financial stability and potential asset growth — a balance that makes you comfortable with how you allocate your assets. Most investors fall into one of five types, depending on how much they value stability over growth. To determine how your risk tolerance effects how you allocate your retirement assets, visit our online Asset Allocation Builder tool.