Revising your asset allocation

Once you understand your risk tolerance, you can construct your asset allocation — the mix of investments in your portfolio. As you approach retirement, your asset allocation strategies will change and you may want to make adjustments to help manage market risk while retaining potential for growth. In retirement, your asset allocation needs to generate income from your savings while growing your overall portfolio.

Diversifying your portfolio

Once you select your asset allocation, you need to choose the investments within it. The goal of diversification is to invest in a range of products such as cash vehicles, bonds and stocks, or mutual funds, so that your assets are spread over many unrelated companies, industries and regions. Diversification is an important strategy that can help reduce risk in your portfolio. While some of your investments may lose value, those losses may be offset by gains in other investments. Determining your risk tolerance, constructing an asset allocation and diversifying your underlying investments can be a complex process. I can help you understand and apply these concepts, and review the progress of your portfolio on a regular basis to help meet your needs.