This episode of the Finance Flash Go! podcast will help you to set your own asset allocation!
Step #1 before you actually invest your money is determining your asset allocation.
Step #1 is where most people get hung up.
There are so many different asset allocations and we can get so worried about picking the right one. But the trick is to realize that there are no right asset allocations. There are also few wrong asset allocations.
The important thing is that you pick one and stick with it.
Where do I start?
Let’s figure out one possible asset allocation right now. First, what percentage of stocks and bonds?
A good starting point is your age (rounded to nearest 10) for your bond percentage. I’m 32 so that would mean 30% bonds.
Now, think if you would like to be more or less aggressive. The further into the future that you are planning to need your money, the more aggressive you may generally be.
If you’re more aggressive, do less bonds. Less aggressive? Do more bonds.
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