What is Asset Allocation, and what does it mean for me?
Asset Allocation is a term meaning how your portfolio is distributed among stocks, bonds, real estate, oil and gas assets, and cash. It is often done as percentages, and generally gets more conservative as one ages. Your portfolio can include individual assets, mutual funds, limited partnerships, or other financial instruments. Each of these categories has risks that can be identified, and minimized in conjuction with expert advice. Many financial studies show that Asset Allocation can be the single most important decision in determining whether you achieve your financial goals.
