How asset allocation works

There are different ways to make investments diverse

How asset allocation works.
How asset allocation works.

The market is down 30% and if you didn’t pull your money, chances are you lost a lot. It’s the classic example of why you don’t want to be in only stock.

To get how much should be in your stocks, take 100 and subtract your age.

To be diverse, there are different bonds you can go into. There are treasuries, municipals and corporate bonds to try.

You can buy some gold, make it physical or make it a gold fund which gets you the diversification you need.

If you need help, look for a certified financial planner and ask them to help with your asset allocation.

More: Money Monday section

About the Author:

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