Asset allocation: What you need to know

If you were all in on stocks, then you’ve lost at least 30% if you didn’t pull out already.

Here’s a standard guide:

  • Take 100, subtract your age, and that’s the amount of stock percentage you should have. So, if you’re 45 years old, you should be in about 55% stock.

You’ll want to diversify:

  • Bonds: Treasuries, corporates, municipals
  • There’s preferred stock, which acts like a bond
  • There’s gold: physical or in a fund

You might want to spend the money to get a financial plan with a fee only certified financial planner professional -- it’s well worth it!

More Reading:

https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/protecting-your-401(k)-from-market-swings

https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/asset-allocation-101

https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/the-best-financial-plan-is-to-have-one

https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/what-to-do-and-not-to-do-with-a-401(k)-in-a-recession

https://www.investopedia.com/investing/6-asset-allocation-strategies-work/

https://www.investopedia.com/articles/basics/05/diversification.asp


About the Author:

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.