"conservative asset allocation" is correct and usable in written English.
It is a term used in the field of finance and refers to investing in a mix of assets that is considered less risky. For example, "Our financial advisor suggested we pursue a conservative asset allocation for our retirement fund."
To be sure, making a major and permanent shift to a much more conservative asset allocation strategy can make a real difference in your overall risk profile.
As for the question you addressed to Michael for those at or near retirement, I would suggest a more conservative asset allocation.
He also says that in order for investors to control their risk exposure they should consider a more conservative asset allocation, with a larger focus on fixed income and less on equities.
Even if you decide you need a more conservative asset allocation (with more bonds or cash equivalents and fewer stocks), you can do it within your individual retirement account or 401 k), without incurring the tax on retirement account withdrawals, plus a possible 10% early withdrawal penalty.
Watching $800 to $1,000 disappear can be scary for anyone, so we settled on a conservative asset allocation that would allow some funds to remain stable (college and car funds) and some to be invested in equities to potentially grow over many years.
The situation isn't much better for those who are now living off of older AllianceBernstein target-date funds, which are supposed to have more conservative asset allocations.
The standard advice on asset allocation for conservative investors turns out to be not too bad.Second, shares are indeed safer over the long term than over the short term.
Portfolio asset allocation: More conservative investors should anticipate lower returns over time and may want to keep their spending at the lower end of the spectrum.
The portfolios with higher deferral rates can result in a larger balance, even when the asset allocation is more conservative.
This will likely lead to an asset allocation that is too conservative.
Over time, you can reduce your risk by adjusting the asset allocation to become more conservative.
