Your Risk Tolerance 4. The first step in figuring your asset allocation is determining your investment goal. To finance a child's college education. To make a down payment on your first home, buy a larger home, or buy a vacation home. If you have more than one goal in mind, you might want to allocate assets to a separate portfolio for each.
Goals serve several purposes.
Help you focus on why you're investing. Guide you in charting the progress of your investment plan. Help keep you on the right course when market volatility tempts you to change your investment strategy. Make a list of your investment goals. Inc. All rights reserved.