Spring cleanup: Tend to your retirement
As the weather begins to warm up, many people turn to their neglected gardens to prune and restore order to their flower beds. This is also a great time to do a spring cleanup on your portfolio, checking that you're staying on track for retirement and restoring order with your asset allocation.
Asset allocation refers to the portion of your portfolio divided—or allocated—between the three major asset classes of stocks, bonds, and cash. Allocating your portfolio across different types of investments can help you breathe easier during market downturns because when one investment is down, a different one may be up. The same principle is true for diversifying across stock or bond sectors.
Follow a plan to meet your goals
Take a look at the models below. Within each slice of your portfolio pie, check that your holdings are diversified, with stock exposure across large- and small-cap companies, sectors, and countries, for example.
Revisit and nurture that plan