chapter 4
Establishing a Strategic Plan
In establishing a strategic investment plan, you must first consider the factors that determine your basic allocation.
Your Age
Just as with anything in life, there is a cycle to your asset allocation strategy—only this one might seem a tad contrarian. For instance, some may assume that because a 20-something has decades of time in which to build his or her nest egg, he or she can afford to take a slow-and-steady approach that is dominated by conservative investments such as fixed income that grow much slower than stocks.
By contrast, one might assume that an older worker who is just 5 or 10 years away from retirement but who is falling short of reaching his or her goals may want to boost exposure to ...
Get Asset Allocation DeMystified now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
