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Proponents of life-cycle funds point to many academic studies citing the importance to returns of maintaining proper asset allocation over time.
If one of my clients happened to ask me what I thought their proper asset allocation should be, I would tell them that, despite my job, I was almost 100percentt invested in stocks myself.
Rule 1: Proper Asset Allocation.
The first rule is proper asset allocation.
Those who do often fail to manage risk through proper asset allocation.
Proper asset allocation is the mechanism that can allow for the realization of your goals.
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A lot of the advisor material focused on taking advantage of proper tax planning, determining the right asset allocation and getting the right type of insurance.
What's the right asset allocation?
What these results also show is the importance of asset allocation and the need for proper diversification with a portfolio oriented towards long-term growth.
Mark Ruloff, director of asset allocation for Watson Wyatt Investment Consulting in Arlington, Va., said the proper risk level for a portfolio depended on whether other sources of retirement income were available.
Your asset allocation should reflect your goals.
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