2023 is off to a great start for investors! This means now is the perfect time to make sure your asset allocation is optimized for the highest possible returns. On this episode, I’m doing a brief review of asset allocation, diving into why you should know the breakdown of your investments, and exploring the ways you can determine what your current asset allocation is.

You will want to hear this episode if you are interested in...

• Reviewing the concept of asset allocation [1:15]
• Preparing your asset allocation for 2023 [3:13]
• Four ways to determine your current asset allocation [5:34]

Allocation, allocation, allocation!

Listeners know how important I believe asset allocation is for your retirement portfolio. If you're new to this concept, let me show you the ropes: Asset allocation is the breakdown of your portfolio between the five main asset classes. These classes are stocks, bonds, cash, real estate, and commodities. The classes break down even further into “safe” and “risky” investments. Cash and bonds are considered safer investments, while stocks, commodities, and real estate are higher risk/higher reward growth-oriented investments. 

When you’re in your 30s and 40s, it’s a good idea to lean on the riskier side in order to build your retirement portfolio with plenty of time to recoup potential losses. However, the closer you get to retirement, the more conservative you want to be. This is why it’s so important to know what your asset allocation is. I’ve had clients believe they are conservative when 95% of their investments are growth-oriented. Do you know how to determine your asset allocation? Listen to this episode to find out!

Resources Mentioned

• What Is The Ideal Asset Allocation In Retirement?, #83 
• Morningstar

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