You want to choose the asset allocation
model, or plan, that has the highest likelihood of helping
you achieve your financial goals at a level of risk you're
comfortable taking. Then, as your life situation and tolerance
for risk changes, or as you get closer to reaching a particular
goal, you'll want to adjust your allocation.
You
can develop your own asset allocation plan based on the
models recommended by your broker, 401(k) provider, or
financial services company for investors of a similar age
and risk tolerance. Even better, you can work with a financial
adviser to determine an initial allocation model and refine
it as time goes by.
Professor
Roger Ibbotson, Yale University, chairman and founder
of Ibbotson Associates
You
can develop your own asset allocation plan based on the
models recommended by your broker, 401(k) provider, or
financial services company for investors of a similar age
and risk tolerance. Even better, you can work with a financial
adviser to determine an initial allocation model and refine
it as time goes by.
Professor
Roger Ibbotson, Yale University, chairman and founder
of Ibbotson Associates 