A successful portfolioÂ requires properly allocating your investments. It is crucial to diversify and rebalance your portfolio on a regular basis. Asset allocation is an investment strategy with a goal to balance risk and reward by dividing a portfolio’s assets according to an investorâ€™s goals, risk tolerance and investment horizon. As an investor gets closer to retirement, financial planners suggest having less invested in equities.
Take a look at this allocation guide by Bankrate.com. And make sure to look out for the annual investing guide in the April issue of Black Enterprise.