Asset Allocation to be fully simple and easy here is basically the implementation of an investment strategy that tries to balance risk vs the reward by adjusting the percentage of each asset in an investment portfolio which is of course according to the investor’s risk tolerance, goals and investment time frame.
You making the decision on where you want to invest in, and how much you want to invest is the thing we call asset allocation.
Asset allocation is pretty much in the main key in the amount of risk you take with your investments.
When you choose an asset allocation you sort of spread your money across categories of investments. Which are for the most part based upon your goals, experience age and risk tolerance.
The past performance here isn’t indicative of future returns.
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