Of all the decisions you must make with respect to your retirement money, how to invest it will probably cause you the greatest anxiety.
Questions are abundant.
First, let's discuss why asset allocation is so important to wise investing. Stocks, bonds, and cash each have their own risk and growth characteristics. Stocks may provide the greatest growth potential, but they also have the highest risk of decline in share price. Bonds are less volatile than stocks and generate income. However, their market value may decline when interest rates rise.