Asset Allocation

An important part of investing is choosing how to split your money among various types of investments. These asset types can be stocks, bonds, or many others. Once you’ve chosen the types of investments you want and divided your money among them, the division is your asset allocation. A person nearing retirement might want a safer asset allocation, emphasizing bonds. While a younger, aggressive investor might want a greater amount of stocks, which are less safe, but possibly more profitable.