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Financial Fitness Forever by Richard Buck, Paul Merriman

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APPENDIX AAsset Allocation

In this appendix I introduce some of the many asset allocation approaches you can use to determine the best balance of fixed-income and equity investments to meet your needs. This discussion is aimed at arriving at only two numbers—the percentage you’ll hold in stock funds and the percentage in fixed-income funds. (They should add up to 100, so, in fact, we might be looking for only one number.) If those numbers are 60 and 40, respectively, then 60 percent of your portfolio is allocated to various stock funds and the other 40 percent to fixed-income funds. I recommend, and for this discussion I assume, that you will diversify your assets properly within each of these two parts of your portfolio.

Here are 10 approaches ...

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