A Quick Portfolio Quiz

Here is news that won't stop the presses: The Stock Market Meltdown of 2008 has devasted just about everyone's savings portfolio.

But in addition to dramatically reducing the amount of money you have, it may have shifted the percentage of money you have in various asset classes. (For example, the percentage of your holdings in bonds and cash are probably greater than they were, given how far stocks have fallen.)

Now would be a good time to check to see if your money is invested the way you want. Here is one way to check. Suppose you have $500,000 saved for retirement. If your best friend, whose situation is identical to your in every way except they didn’t have any money saved for retirement, suddenly got a $500,000 windfall that had to be saved for retirement, would you tell them to invest it exactly the way you have now.

If not, it is time for you change your allocation.