One of the most important decisions investors face is the asset allocation of their portfolio. For the retiree it will be inextricably tied to a second critical decision: the spending strategy used during retirement.
This is simply the percentage of a portfolio invested in the various asset classes such as stocks, bonds, and cash. It should be the top priority in constructing and managing a portfolio because it determines almost all of the risk and performance an investor experiences, and greatly affects the chances of meeting goals. Since we can’t predict the future and don’t know which asset …Read More