The ThirdAge Asset Allocator |
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Investors have an individual ability to tolerate risk in their investments. By allocating money into different asset classes, investors seek to minimize risk while maximizing return. And while every financial planner has their opinion about what's right for you, there does seem to be some consensus based on what stage of life you are in. Of course, all recommendations carry a disclaimer that individual circumstances may dictate a mix that is quite different.
Asset allocation refers to the mix of investment vehicles in your portfolio. The suggested asset mixes include stocks, bonds and cash; they do not include real assets such as one's home or other real estate. Most planners do not include real assets in this mix.
So take a quick look at what your portfolio might look like ...
At which life stage are you?
 Young, I've got decades before I retire
Prime of life or approaching retirement
Retiring soon or already retired
In my fourth age, over 70
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