Getting the Numbers Right
Your asset allocation is a key part of building and protecting your retirement nest egg. The right mix of investments ensures you’re being aggressive enough and taking enough risk to reach your goals, without making your accounts so risky and volatile that you dread opening your account statements each month, afraid to see a balance that might have taken another dip.
When I first started my practice years ago, a new client came into my office with a perfect 50/50 portfolio; half her accounts were in stock index mutual funds and half were in bond index mutual funds, as they had always been. She had plenty of money to retire but still wanted my suggestion on how to rebalance. I showed her all the complex ...