However, if you are planning to be retired for a number of years, you will need to keep some of your portfolio in aggressive investments, to outpace inflation. So, asset allocation allows for a trade-off of substantial risk for a better probability of achieving your financial goals. The goal, through diversifying, is to minimizing your risk and keep you from having to guess about what will be hot and what won't in the market. The views represented above are those of the author, and the information provided here does not constitute any tax, investment or legal advice. The historical data presented are for illustrative purposes only.
Past performance is no guarantee of future results.