Asset allocation can help reduce the risk to an investor's total portfolio.
The concept involves distributing investment dollars among a variety of investment options, such as bonds and equities.
A variety of websites offer insights about asset allocation. Here are a few:
- Bankrate.com: Provides four sample asset allocation plans for young and single investors, couples, middle-aged investors and seniors. www.bankrate.com/finance/retirement/asset-allocation-4-sample-plans.aspx
- Investing Daily: Breaks down asset allocation in a three-part series. www.investingdaily.com/10929/asset-allocation-part-1-what-it-is-and-why-you-need-it
- Investopedia.com: Discusses different asset allocation strategies. www.investopedia.com/articles/04/031704.asp
- InvestorGuide.com: Offers a description of asset allocation principles and investing considerations. www.investorguide.com/iguinvestportfolio.html
- U.S. Securities and Exchange Commission: Useful primer on asset allocation, diversification and rebalancing. www.sec.gov/investor/pubs/assetallocation.htm