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

Asset allocation is the key to successful diversification.

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You need to figure out how much of your money should go into various asset categories like stocks, bonds, cash, cash equivalents, real estate, private equity, and other alternative investments.

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What Is Asset Allocation?

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

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What Are the Major Asset Classes?

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Why Is Asset Allocation Important?

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Risk Reduction

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

Asset allocation is the key to successful diversification.

You need to figure out how much of your money should go into various asset categories like stocks, bonds, cash, cash equivalents, real estate, private equity, and other alternative investments.

What Is Asset Allocation?

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

What Are the Major Asset Classes?

1. Paper Assets 2. Real Estate 3. Business Assets 4. Collectibles 5. Commodities 6. Currency Assets

Why Is Asset Allocation Important?

Risk Reduction

By diversifying your portfolio, you can ensure that you are not too heavily invested in a specific area, thus giving you the chance to protect your entire portfolio or retirement savings program.

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