|1.||Know what you're investing for.|
|2.||Make paying yourself a priority.|
|3.||Make tax-smart investments.|
|4.||Diversify your portfolio.|
|>||Understanding the various asset classes|
|>||Establishing the right asset allocation mix makes all the difference|
|>||Diversify within each asset class Stocks|
|>||Diversify within each asset class Bonds|
|>||Take the long view|
Deciding how to allocate your assets is an important investment decision.It's your asset allocation that really determines how your portfolio will perform in the long run. Remember, it's critical to establish an asset allocation plan, and it's just as critical to maintain one over time.
See why it's important to rebalance your portfolio over time.Have you looked at your portfolio lately? Unless you monitor and adjust your portfolio periodically, your mix of assets can shift out of balance. For example, after a bear market for stocks, your allocation in bonds will likely be too high relative to stocks.
Next: Take the long view.