Asset Allocation: Why Is It Important And How To Determine Your Asset Allocation

FINANCIAL FREEDOM COUNTDOWN

You’ve probably heard that you should be diversifying your investments, but what does that mean, and how do you do it?

Diversifying your investments is one of the most important things to protect your money. But it’s not always easy to figure out how to do it.

What Is Asset Allocation?

Arrow

Asset allocation refers to how and where individuals allocate their money across different financial markets.

Asset allocation can change based on various factors, including risk tolerance, investment goals, the purpose of funds, and the current state of the economy. Ultimately, asset allocation is a critical component of economics, and it is vital to your overall investment strategy.

What Are the Major Asset Classes?

Arrow

– Stocks – Fixed Income (US Treasury, CDs, Bond Funds, P2P Lending) – REITs – Asset-backed Lending

1. Paper Assets

Swipe Up for full Blog Post