The second way you can look at the length or time you have to invest before you achieve your investing goal is through your age.

Let’s say that you are saving money for your child’s college education then the child’s age is the factor to the asset allocation. If the child is a toddler then an aggressive allocation would be a good idea. This is because you have more than 10 years.

Here choosing a higher-yielding assets just like stocks would be a good idea for you and the college education savings. This is because short-term dives in the market wont disturb your goal.  

And as the child grows and becomes older and older. Then their allocation should gradually become more conservative because their time to college becomes closer and closer around the corner.  And they will need the access these funds from investments. 

But if you are saving for retirement lets say, then you will look at your current age and your plan at what age you want to retire at. 

If your retirement is 30 or 40 years away then maybe consider advisors. Advisors would be a good idea because the majority of your portfolio should be stocks or real estate. 

And as your retirement age have came and you are preparing yourself to leave your work place, advisors will suggest the shift towards a more conservative or less risky allocation.

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